Our entire life revolves around technology. We use it for work, travel, communication and almost every aspect of our existence.
Because it deals with financial affairs, bookkeeping is a meticulous activity that requires precision, attention, focus and a lot of responsibility. It is definitely a field of activity in which technology can be a reliable help.
Here are some of the most important benefits of using accounting software vs. doing manual, paper accounting:
It speeds up the entire process. This is obviously one of the main advantages of computerized accounting. Manual bookkeeping entails entering every piece of data and transaction MANUALLY, regardless if you are using programs such as Microsoft Excel or just paper and a pen. What an accountant can accomplish in hours of hard work and scribbling, an accounting program can do within minutes.
It will reduce your costs. Hiring a person to undertake your periodical finances will cost you way more than paying a small, monthly fee in order to use a cloud-based accounting software. Even if you choose a downloadable, desktop version, you will still end up paying less for the license than for a consistent, monthly paycheck and all its related taxes.
It lets you access your books from anywhere, as long as you have access to a computer and an Internet connection. E-accounting allows you to have access to your financial information outside of your office, on a 24/7 basis. All you have to do is have a laptop/computer/smartphone and a decent Internet connection.
It keeps everything more organized and easily accessible. Leafing through thick paper folders can be very time consuming and frustrating. You might end up spending hours just to be able to retrieve a specific transaction or so. An accounting program will let you store everything based on various criteria and keep everything at reach and organized. Searching for a file, report or transaction will only require a few clicks.
It is safer. It reduces the risk of having your papers lost, misplaced or destroyed. Stacking mountains of paper folders and files carries some risks. They can get lost, misplaced or even destroyed in a flood, fire and so on. If you keep all your records in a digital form, especially web-based, you can’t lose them even if certain computers are damaged.
It is more secure. Using accounting software allows you to create passwords, add restrictions, use a firewall and an Antivirus. You can decide who gets access to what, authorize employees to only use the files and folders you want and significantly reduce the risk of having your data hacked or stolen.
Data is better preserved. With time, paper gets old and even unreadable. This never happens with digital records.
It is more eco-friendly. This one is obvious. It is more environmentally responsible to keep your records in a digital form than on paper.
It is easier to distribute. Financial information is usually important for several departments of your business. Creating and handing out invoices, bills and so on to everyone takes a lot of time. With e-accounting you can create all the documents you need in no time and quickly share them via e-mail to as many people as you need.