Are you still doing some of your bookkeeping manually? If so, it is about time to digitise. Manual bookkeeping is error-prone. Once your company starts to grow, you will have more transactions that will be difficult to monitor and access. This is when cloud computing accounting and digitising become beneficial. Both make bookkeeping simpler and easier, and they also keep your financial data secure.
These are the steps you can take to digitise your small business’ accounting process.
Implement a Common Communication Platform
Some bookkeeping mistakes occur because of miscommunication. These supposedly minor mistakes can cause you problems. A mistake in computation can mean higher costs or even penalties. To avoid this dilemma, implement a common communication platform with your clients and your accounting team (or outsourced partner). You can schedule regular meetings through Zoom, face to face if possible or other platforms. This allows you to get on the same page as everyone in the accounting process.
Use the Same Software
Other than the same communication platform, everyone involved in the accounting and bookkeeping process need to use the same software. Doing so enables easy access to data and simplifies everyone’s work. They can access and store information in the system, and make updates in real-time. This allows for easy rectification of possible errors along the bookkeeping process. You can make sound financial decisions because your accounting books are always updated.
Move Documents to an Online Database
One of the important steps along the digital accounting process is moving documents to the cloud. The increasing number of transactions your growing company makes will become a problem. Monitoring bills, accounts receivables and receipts will be a tedious process because of all the documents and papers you need to keep. Solve this by moving documents to an online database. Technology has made it easier to do this. You can take photos of receipts or have them scanned. That’s just one way of moving documents online.
Online Billing System
Improve your billing process by using an electronic system. With this, you no longer have to worry about losing receipts when you start making financial statements. An electronic system can generate billing statements automatically and send them to customers once you set a schedule. It can also send reminders when payment is due or overdue.
Send Updates in Real Time
An automated system and cloud computing accounting eliminates your problems when it comes to protecting data, generating documents, and organising information. It also allows you to update customers in real time. You don’t have to call or email customers when a payment is nearing its due date or when it is already due manually. The system can process your financial data for you and provide you with an organised report.
Digitising your accounting process has plenty of benefits. The above mentioned tips allow you to make the change. Implementing the process may take time, especially if you have accumulated sizable paper financial documents and receipts. However, making the change to digital makes your team’s work easier over time.
If you need assistance with some of your bookkeeping tasks or setting up a system, we at Robookkeeper can provide you with affordable small business accounting services. Our team of freelancers managed by D&V Philippines can update your books for you.