On a daily basis, many activities take place in an organization including production, distribution, sales and procurement. All of these processes generate invoices, memos, purchase orders and different documents every day. Most of these documents go through the accounting department, creating a mountain of paper for bookkeeping. Most of these papers contain sensitive information, hence, it’s not possible to just throw them out. Disposing of these requires special machines and shredders, and they don’t come cheap!
To steer an accounting department toward going paperless, companies must invest in a paperless accounting software. Usually, someone from an accounting department needs about 3 minutes to get a file from a cabinet. But in a real-life situation, it’s never 3 minutes. Adding distractions along the way like going to the bathroom, staying to talk to a fellow colleague, getting a drink of water and many other distractions makes it a 20-minute task! The estimated 20 minutes does not include the time it takes to take into account the effort it’s going to take if the file is misplaced or stored in a different storage unit.
Fortunately, with different accounting management programs and ERP solutions for corporate use, an accounting department can become paperless in no time, saving effort, time, and precious resources. Here, we will highlight five ways to help you keep the accounting department paperless.
1. Time Management and Document Handling
When the accounting department of your company is entirely paper-based, listing and storing each document needs a sophisticated and seldom confusing process. For example, every time a purchase order arrives in the accounting department; the accountant is required to place it in a separate section with the time and date it arrived, correctly logged. Logging the time, date, client name and order details are useful in retrieving the document, but it takes a lot of time and effort. Moreover, the accountant or bookkeeper is bound to make a mistake and incorrectly file the document at some point.
On the other hand, if you invest in accounting software, the accountant won’t have the need to file every document manually. The software will automatically generate invoices, sales reports and purchase orders for every item. The accounting software will save time and make the entire documentation process simple, convenient and easy to retrieve.
2. Reduce Supply and Storage Cost
Documents in the accounting department rely on storage facilities, meaning that the department is cluttered with file cabinets and drawers overflowing with paper, printer supplies, and envelopes. The software will assist in making the accounting department go completely paperless. With no papers to store and record, the department won’t need large cabinets to store them in. A paperless office in an accounting department will be cost-effective regarding spending money and space on storage units.
3. Make the Retrieval Process Easier
Having an accounting software makes it easier for you to retrieve information about any specific file without the need to fish through thousands of files in a large cabinet. The software makes the accounting department entirely paperless by its streamlined operations. Each file has its own code or a serial number that allows swift access to any file, anytime. Proper content management features of the software are useful in organizing all the files according to any category the company needs to transform the work space into a paperless office.
4. Swift Response Time
When you have an efficient paperless office software to handle all business operations and content management, it makes it easy for managers and accountants to reduce their response time for queries from different departments. For example, if a customer calls to complain about a product defect in a new purchase; using the designated serial number for the product, the accountant will be able to retrieve all the necessary information about the product.
5. Invoice Processing is Easier and Faster
As the accounting software for bookkeeping relies on using electronic invoice processing, it eliminates the need to make the accountant enter the data on the invoice manually. Using a software makes the procedure of invoice generation and storage relatively easy. Some software has a scan feature that allows the accountant to scan any crucial invoices still on paper.
Going paperless in any business is not just cost-effective and easy, it also makes things simpler for accountants to record all the invoices with ease. It makes it easier for an accountant to manage all the files and invoices needed for effective bookkeeping, as they are electronically generated. Going paperless in an accounting department is a step towards having a greener and better environment.
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