Did you know that 78 percent of accounting firm clients prefer paperless process and digital interactions? This is yet another reason why paperless accounting is the only way to go forward.
Furthermore, the latest 2020 developments have increased the need for digital and remote operations even more. If you’re still not confident about initiating the transformation, here are a couple of very important reasons why paperless accounting is the way to go.
Better Customer Service
Choosing the right document management system for your CPA firm or accounting department reduces the amount of time required for document retrieval.
In addition, cloud-based document storage gives you the flexibility to respond to clients and address their needs on the go. There will be no need to mail paper copies back and forth. You will also have all essentials at your disposal to do your job, regardless of your location.
When empowered by such convenience and flexibility, you can ensure excellent customer service. Speed, comprehensiveness and the reduced risk of error will make it very easy for your accounting firm to attract new clients and turn them into loyal, long-term customers.
Paperless Accounting Leads to Easier Invoice Processing
Apart from a good document management system, you will also need the right kind of software for bookkeeping. Essentially, these are the two main components of going paperless and having all important tools at your disposal.
Bookkeeping software platforms can simplify invoice processing immensely. Not only will all entries be digitized and standardized, you can also put together customized workflows that are reflective of processes in your firm.
Digital invoice processing will also eliminate the need for manual data entry – a cumbersome and time-consuming process that can easily contribute to errors and omissions.
In addition, the invoices created and managed through the system will be indexed properly and added to a well-organized database. From that point forward, retrieval will become effortless.
Much Lower Risk of Data Loss
The offices of accounting firms are usually overflowing with paper. Those who have multiple clients or large stuff to deal with on a monthly basis will face the most enormous paper load out of everyone.
The significant influx of paper-based documentation makes such records much easier to organize and store properly.
Because of these facts, the risk of misplacing or even losing vital documentation is quite high.
Data loss becomes almost impossible when you switch to paperless accounting.
Contemporary document management systems are capable of doing version control, eliminating redundancies, and creating regular backups. You’ll have a very good idea about the dates of document creation and editing. You will also be given access to detailed logs about the work that has been done within the archive.
All of this data, combined with the backup copies of files, bring down the risk of data loss. Depending on the specifics of the system and how it’s being utilized, some CPAs have even managed to eliminate that risk altogether.
Reduced Cost of Document Storage
Accounting firms are legally obliged to maintain documentation for a specific period of time.
If your company is highly successful and you have hundreds of clients, the space and resources required for document storage and ensuring legal compliance will be massive.
Paper-based document filing and maintenance can be exceptionally expensive processes.
Going paperless reduced the space needed for an office and it also simplifies compliance procedures. If you are looking for ways to eliminate some business operational expenses, paperless accounting would be the way to go.
The most cost-efficient option to explore is a cloud-based solution, whether it comes to document management or a bookkeeping software product.
Cloud-based business solutions are highly scalable and you only pay for what you’re using at the moment. As your company’s needs grow and expand, you can modify the business suite you’re using and that change will be accounted for in your monthly subscription or general fee.
Building Your Company’s Reputation
The general goal for most business owners would be to establish the right kind of reputation for their brand. You want your firm to be perceived as fast, efficient, and capable of delivering stellar customer service every single time.
The work that your employees do is obviously the biggest essential for the establishment of an enviable reputation.
But this isn’t the only important element.
Your business tools and the tech infrastructure supporting everyday operations will also lead to a serious difference in the quality of the work that you do.
Choosing paperless accounting and going through the transformation allows you to invest in your company’s reputation. If you want to be perceived as an innovator and someone who adopts the best processes to address the needs of clients, you have to start thinking about the switch.
Finally, understand the fact that going through a digital transformation is not a heavily expensive process.
Paperless accounting will actually save you money in the long run. While you’ll need to spend some on innovative solutions right now, you will see a very rapid and sustainable return on investment.