An accounting document management software can actually make your business more profitable
If you are looking for a short answer to why any business would need an accounting document management software (DMS), it’s simple –
- It helps save money
- It makes accounting processes easier
Thus making the business more profitable & productive in the long run.
But how does an accounting document management software – software that costs less than your annual spending on coffee, actually help your business? Well, let’s find out.
An accounting document management software helps save money:
Now, let us be clear. Purchasing the software will cost you, but the benefits that it will result in, is what will help you save more money than you invested on the software in the first place.
In its essence, a DMS helps businesses reduce their dependency on paper, by digitizing all their physical files & documents. It also helps perform other day-to-day tasks; like editing, sharing, organizing & processing of documents, on the same platform; thus eliminating the need to use other document viewing and sharing applications. And because it enables businesses to move away from paper, it helps reduce a lot of avoidable daily expenses like.
- Inventory
- Storage
- Stationery
- Filing
- Printing/Scanning
- Maintenance
And many other document management related expenses.
These expenses might seem small at first, but together they can put a considerable dent on any business’s pockets.
According to a Report by the Paperless Project – A group of companies dedicated to reducing paper wastage – An average organization spends 15% of its annual revenue on creating, managing & distributing documents. So if your company generates an annual revenue of $1 million, you spend somewhere around $150,000 of that on paperwork, most of which becomes useless in a few days.
Other than reducing direct expenses like the ones mentioned earlier, any document management software used for accounting also helps reduce indirect expenses; like the ones generated due to mishandling, damage or theft of documents.
An accounting document management software makes accounting easier:
Another very important, and overlooked benefit of any good DMS for accounting, is its ability to eliminate physical accounting & business processes altogether.
Let’s take the process of invoicing. What stages does your invoice go through before reaching its destination?
- The marketing/sales department procures it from the client
- The accounts department checks and approves it
- And finally the management stamps and authorizes the payment
And if the invoice gets disapproved at any step, the processes repeat themselves countless times over. Imagine undertaking these processes for hundreds of invoices every day. Sounds like a huge waste of resourceful time, doesn’t it?
But once you invest in a good accounting document management software, all these physical processes get automated.
The invoices are transferred between departments as per your automated workflow design. They are automatically signed, stamped & transferred on approval. And if the invoices require any corrections or edits, you can transfer them back to the required department, as well as add a note alongside stating exactly what changes need to be made, by just click a few buttons. Most large firms already use this document management software, to manage their vast inventory of accounting paperwork on a daily basis.
Other than that, there are specially designed document management software for accounting firms. These software offer more features that prioritize and accelerate accounting processes. Features like:
- Batch scanning & automated indexing, that allow faster digitizing of paperwork
- Advanced search & document tracking, that ensure an efficient audit trail
- Document encryption & access control, that guarantee data security of the highest standards
And so much more…
One of our client’s rightly said, “A document management software benefits a business in more ways than you can imagine”. But if you are still thinking whether investing in an accounting document management software is for you or not? Just take a free trial of our 5-star rated software, GLOBODOX, and find it out for yourself.