Businesses keep their operation records and manage their accounts by keeping invoices, receipts, account statements, and other financial documents.
Traditionally, gathering transaction records for the business’s financial management involves the use of papers. But, heavily relying on paper is not cost-efficient and environmentally-friendly. Consequently, data from The World Counts shows that business offices use about 12 trillion sheets of paper a year, and approximately 50% of their wastes are composed of paper.
Hence, to reduce paper waste and pollution, companies are using technological tools to cut back on paper usage for their business processes, digitizing even their accounting and bookkeeping.
Paperless accounting intends to process transactions electronically; thus, eliminating document storage and making accountants and bookkeepers work more efficiently. However, for most businesses, going paperless is still more of a concept than a reality.
Transitioning the accounting and record-keeping processes to paperless is not easy, but it can be achieved with a strategic, disciplined approach.
1. Get everyone onboard
The biggest challenge for businesses when transitioning to paperless business processes is getting everyone on board. Unless the company’s bookkeeper or accountant is on board the automation, the company will not successfully achieve its goal of cutting back on paper usage for their financial and accounting records.
It is best to lead the way on going paperless and involve everyone during the initiative’s implementation phase.
2. Organize paper documents and files
Before automating the bookkeeping and accounting processes, including invoice processing, businesses need to organize paper documents and files, convert them into an electronic format, and store it into a digital system on a computer or cloud. Electronically storing documents allow businesses to prepare and manage their operations anywhere, whether in the office or at home.
3. Invest in the right tools
Shifting to paperless record keeping and accounting process will not work without the right tools to support them. Investing in bookkeeping software allows businesses to simplify their financial management and make their record-keeping process more efficient. Using an invoice maker app helps companies automate sending invoices and enable them to view and receive invoices from anywhere and on any device.
Consequently, many companies like KIPPIN offer online accounting software for small businesses. Business accounting software simplifies organizations’ record-keeping and accounting processes, enabling them to make their financial activities more straightforward and grow their businesses.
4. Learn the new system
To effectively see how the new bookkeeping and accounting system can impact their business processes, organizations need to allow their bookkeepers and accountants to test the latest office software. It will also help them use and access the software confidently navigate the new bookkeeping and accounting systems.
5. Enjoy the benefits
With employees trained to use online bookkeeping and cloud accounting, businesses can enjoy paperless record-keeping and accounting benefits. They can operate clutter-free, have a safe storage space, cut waste, and save money on supplies.
Switching to paperless financial management and accounting also makes transaction records and account statements more accessible for organizations, their accountants, and their bookkeepers. It also allows businesses to track and record income and expenses in real-time, which, in turn, helps them have a real-time financial business insight.
Keeping track of transaction records helps businesses improve their business performance, increase the likelihood of their success, remain competitive in their respective industries, and navigate the financial challenges of running a business.
In a modern digitized accounting environment, shoeboxes of receipts are a thing of the past. Accordingly, organizations going paperless with their accounting and bookkeeping processes makes it easier for their bookkeepers to manage all financial records and for their accountants to analyze the gathered data efficiently.
Transitioning to paperless accounting can be daunting, but it can be advantageous in the long run. With proper planning, execution, and usage of online accounting platforms and software, businesses can automate their financial management and accounting workflow. Subsequently, using Accounting as a Service (AaaS) makes the accounting, invoicing, and bookkeeping processes simple and more manageable for organizations.
Where to get an easy-to-use and time-saving bookkeeping and accounting service?
KIPPIN is a cloud-based mobile bookkeeping service tailored to simplify your accounting needs.
We help our clients manage their financial transactions and records and stay on top of their business by aligning our clients to top Bookkeepers and Accountants on our platform. We also provide a software-only solution, allowing our clients to manage their own books using our platform.
Contact us today at 1-905-581-9362 or [email protected] You may also visit our website at www.kippinitsimple.com to learn more about our products and services.