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Paperless Accounting

PAPERLESS FINANCIAL ACCOUNTING

The advent of technology has revolutionized businesses and has done away with paperwork in offices. A lot of space has been saved as files are now stored in electronic gadgets and virtual storage. Paperless accounting involves transaction processing that is entirely electronic, with almost no paper involved in any business process. The intent is to streamline processes, reduce transaction error rates, and eliminate document storage.

Every business, from small scale to large scale companies are going paperless to keep up with the modern age technology. A business that wants to operate economically and efficiently in the tech world needs to transit to a paperless operation. The methodology is to adopt best Document Management tool to support the activity. Document Management system for any organization should prioritize features such as index and search, optical character recognition (OCR), enhanced security measures for access, data back-up, document trail, and email management so that everyone can categorize documents regardless of the file format and access them for action.

After the pandemic and businesses re-working on their model due to new normal and hybrid work system, every organization must cut cost and address the following to achieve paperless accounting:

Best practices for paperless accounting

This would include the following:

  1. Minimize generating financial accounting reports from different departments as it is an inefficient method to address the task and share PDF reports instead.
  2. Minimize sending reports to regulatory bodies and adopt paperless transmission
  3. Train staff on the benefits of paperless work
  4. Adopt methodology for to manage digital files to organize files well for easy and proper sorting. Use of appropriate keywords to track files, naming and filing conventions etc is a must.
  5. Invest in Document reader, Scanning & storage machines to transfer information from hard paper to digital format
  6. Train staff to learn to append e-signatures on documents that need signing.
  7. Extend the scope to external contacts such as suppliers, service providers as well as billing methods and adopt digital transmission of statements
best practices of paperless accounting

Why organization should go paperless?

  1. The benefits of going paperless extend to saving on space, cost, and time
  2. The organization can benefit from increased efficiency, productivity and clean environment.
  3. The organization will enjoy the convenience of accessing documents anywhere as well as keeping them more secure from theft and natural calamities like fires.

Which documents can be eliminated?

  1. Billing statements are first to go. Apply for digitized billing methods.
  2. Others to follow are: Receipts, Statements, Purchase orders, Account documents, Loan documents, Personnel files, Delivery tickets, Expense and travel statements etc.
  3. All external documents that require postage costs should be minimized
  4. Other papers easier to do away with are meeting files and members can access these files using their smartphones, computers, or laptops
  5. Use Drop box and other tools for large files to access and make changes
  6. Old documents in the Archive can also be digitized
paperless finance

How can organizations efficiently make accounting office paperless?

Here is a simple strategy that you can use to make your accounting office paperless without spending a lot of time and money:

  1. Involve every member of the team and convince them to support the idea along with the reasons for the change.
  2. Make the plans to dispose of loads of hard-copy documents with ease and securely.
  3. Design and recreate your business processes to incorporate the new procedures like e-sign, PDF format, proper storage and rightful access
  4. Make paper inconvenient and non-accessible for all incoming and outgoing documents

About SBS

SBS Global is an ISO 9001:2015 & ISO 27001:2013 certified company serving since 2007. SBS Global offers a comprehensive range of Finance & Accounting Services, CFO Services, Compliance (i.e., Company Secretary services) & HR Services catering to the needs of Small & Medium Organizations across industry sectors to meet their changing needs & expectations. Our team includes employees having industry & domain expertise who have insights drawn from years of professional experience.

You can reach us via email enquiry@sbs-global.com or via call us @ +91 8884733955 / +91 8040301700.

For more information visit: www.sbs-global.com

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