Paperless Accounting: Why & How You Should Make the Switch

From violation tracking to architectural reviews, the majority of community association operations today can be completed online with the help of technology. However, some tedious back-office tasks, like accounts payable, basic accounting for small business still tend to be completed manually. If you’re using spreadsheets and paper invoices to complete your accounts payable process, then now is a great time to consider going paperless. Here are some reasons why you should make the switch:

Save time:

Every week your team spends hours printing, filing, and manually scanning invoices. With paperless accounting, you can quickly retrieve and access documents in just a few clicks.

Save money:

Between ink, paper, postage, and file storage facilities, the cost of manual accounting can add up, along with all of the employees it takes to complete the accounts payable process. Paperless accounting cuts the costs of these materials and the headcount in half, so you can focus your energies on growing your business.

Reduce error:

Manually entering each invoice from paper sources and multiple spreadsheets can lead to errors and inaccuracies, whereas when everything is stored digitally, you can catch mistakes early and ensure invoices are correct.

Increased accessibility:

When invoices and receipts are stored online you can quickly and easily access them from anywhere, rather than having to dig through paper files at the office.

Boosted efficiency:

With all of your accounting housed within one system, you can increase the speed of invoice processing by eliminating the back and forth between vendors, team members, and financial institutions.

Heightened security:

Storing important documents in the cloud is more secure than paper files stored in the office since digital files are generally encrypted and available to a restricted set of users.

Increased satisfaction:

Employees and vendors will benefit from having invoices paid quickly and accurately.

4 Tips for Transitioning to Paperless Accounting

Explain the benefits to your team and clearly outline your plan of action. If everyone understands why you are making the switch and how it will benefit your business, they will be more eager to help with the transition.

A successful move to paperless accounting depends on implementing accounting software. You can reap the benefits even more if you use a system that also automates some of the tasks, like the accounts payable process, so don’t have to manually scan invoices yourself.

Shred and dispose of any paper files after you’ve successfully stored everything digitally. This will prevent any inconsistencies or outdated data from getting mixed up with your new paperless system.

Make paper inconvenient. Reduce your team’s dependence on paper documentation and encourage them to adopt a fully digital accounting process by removing fax printers, copiers, and fax machines.