The Many Important Benefits of Digital Accounting

As society becomes increasingly paperless, digitalisation has revolutionised the accounting sector. From accessibility benefits to increased efficiency, digital accountancy services have many advantages. Read on to discover why digital accounting is not something you should be missing out on.

Increased efficiency

We all know that keeping track of countless sheets of paper can be a faff. Digital accounting systems automate many of the tedious, time-consuming tasks associated with paper-based systems. This means companies can save a significant amount of time and resources while being able to focus on more important tasks. Tasks such as bookkeeping, invoicing, and reconciling bank statements can be done faster, more accurately and with less human intervention than manual methods.

Improved accuracy

Digital accountancy services can also help reduce errors by checking for inaccuracies and inconsistencies in data. This can help prevent mistakes and improve overall accuracy of financial reports. Additionally, digital accounting systems can also provide real-time data access, meaning you can make better informed decisions with up-to-date information.

Enhanced security

When it comes to accounting, digital systems are much more secure than paper-based services. Online servers will use advanced encryption techniques to protect sensitive financial data, with back-up features to store information in the case of a disaster. As more companies are offering hybrid working models and the opportunity to work from home, digital systems also provide an additional layer of security for organisations’ financial data. This is particularly beneficial for companies that must adhere to strict data protection regulations.

Greater accessibility

The coronavirus pandemic instilled in us all the importance of being able to access important documents and data from wherever we are. When employees were working from home, it was difficult to have access to the folders stored in the office. Digital filing means you can access whatever you need from any location. For example, business travellers can scan and upload documents and their cab invoices on the go while leading accountants can have mobile access to all submissions. This essentially means the problem of manual billing is solved forever – in its place you can expect much greater ease and flexibility.

Cost effective

Controlling financial information electronically can save money in the long run. As saving files on paper is no longer necessary, the accuracy of digital accounting means fewer errors to fix that could have led to a loss of funds. Additionally, you will no longer need storage space for paper documents and the requirement to spend money on printer cartridges etc.

HMRC’s Making Tax Digital (MTD) plan is digitising the UK’s tax and accounting system and businesses should not wait until the last minute to make the transition. Michael Filiou has the systems and resources set up to help you and your staff get full benefit from moving your data into the Cloud – to start your digital accounting journey, please contact us today.