How digital accounting workflow helps improve productivity

How digital accounting workflow helps improve productivity

Reliance on paper-based accounting processes is a cause for concern and, in some companies, an expression of burdensomeness and complexity of the task. In this context, executives are wondering about the best digital transformation strategies to improve business performance. When it comes to streamlining accounting processes, document management software emerges as an essential tool to achieve this. These programs provide multiple benefits to the accounting department and enhance efficiency and productivity for the entire company, making them an essential part of an operations improvement strategy.

 

Definition of "documents" in accounting preparation
Documents in accounting preparation refer to any type of structured documentation and information that is used in the context of accounting transactions. These documents typically include various types of records and documents that support and document a company's financial operations. Examples of documents in accounting include:

Invoices: Documents showing amounts owed by customers or suppliers.
Purchase orders: Documents created when materials or services are ordered from suppliers.
Checks: Documents used in payments and payments.
Financial statements: Documents that include financial reports and financial statements.
Payroll records: Documents that record details of salaries and bonuses for employees.
Contracts and Agreements: Documents that specify financial obligations and terms in deals.

It is worth noting
There is a difference between input and output documents. Input documents are used to initiate accounting processes such as invoices and purchase orders, while output documents are created by accounting systems to document financial operations and provide reports and results.

Using document management software, these documents are converted into digital formats, which helps facilitate the circulation and storage of information more efficiently. These programs can also be used to streamline a company's internal and external workflow and enhance collaboration with customers and business partners.

 

Redesigning accounting processes: The role of digital workflows and electronic documents

The risks of not adopting document management in the field of accounting
1.     Unproductive employees:
Repetition in entering data and information can be boring for employees and occupy their time with repetitive tasks, reducing their productivity.
These routine tasks force employees to repeat the same activities, which increases their boredom and may lead to a decline in their desire to work.
2.     Manual entry errors:
During manual data entry, simple spelling errors or errors in numbers can occur. These errors can be costly, as they become difficult to detect and correct later.
Errors in financial statements can cause legal problems and negatively impact a company's reputation.
3.     Weak cooperation between departments:
In a traditional accounting environment, information is spread out on a paper sheet or in isolated electronic files. This can isolate departments from each other and reduce effective collaboration between them.
Information is difficult to share between departments, reducing the ability to make comprehensive data-based decisions.
4.     Bottlenecks in accounting and other departments:
The paper-based flow of information can cause delays in critical processes and lead to workflow congestion.
Delays in providing information to other departments hinder them from carrying out their work efficiently.
5.     Lack of streamlined and transparent review and approval processes:
In a traditional paper environment, administrative procedures can be complex and unclear, forcing documents to be passed between different places before approval.
This leads to a loss of transparency and complexity of audits.
6.     Limited benefit from early payment discounts:
Manually recording data can be time-consuming, making it difficult to take advantage of opportunities for early payment discounts.
These discounts can be an important source of money savings, but delaying filing can cause you to miss out on these opportunities.

Improving the performance of accounting operations through electronic document management
In the modern business world, companies must shift to more sophisticated and efficient ways of working. One of the ways to bring fundamental improvement to accounting processes that we discuss in this article is the use of electronic document management software. Implementing these systems is an essential part of a modern digital business strategy. In this article we'll look at the substantive benefits that can be achieved through these systems, from linked accounting to improved ability to take advantage of early payment discounts and better control of cash flow. Accounting systems integrated with document management software allow you to benefit from a range of advantages:

1-     Associated accounting and relevant company documents
Thanks to electronic systems and document management software, financial documents can be easily linked to relevant accounting information. This means that accountants can access relevant documents and data directly, making audits and analysis more accurate and easier.

2-     Extended ability to solve customer and company inquiries
Electronic systems enable quick access to information and documents, enabling members of the accounting team to respond to customer and partner inquiries more effectively and immediately.

3-     Enhanced electronic audit trail
Electronic systems facilitate audits with improved documentation and accurate tracking of all accounting activities. This increases transparency and facilitates compliance with accounting standards and laws.

4-     Reduced (or eliminated) paper storage
Thanks to the shift to electronic documents, the cost of storing paper documents can be reduced or even eliminated completely. This reduces congestion in offices and saves valuable space.

5-     Increasing the efficiencies of the accounting process, including simplified review and approval
Simplifying accounting processes