8 Important Benefits of Digital Accounting

By Sophie Jordan  -  Jan 11,   2021

  4 MIN READ

 

Digitization is particularly difficult for companies in the German SME sector, but even internationally active corporations have problems adapting to the changing times due to their size and the volume of outdated processes. The importance of digital transformation of business processes has been known to companies at least since the Corona Crisis 2020, because it is the key to a company's long-term competitiveness. Digitization accelerates, optimizes and simplifies processes wherever it can, and yet companies are hesitant to implement helpful digital tools. Even in companies that are open to digitization and have already digitized many processes, one department still often lags far behind - the accounting department. Rooms full of folders and an impenetrable paper trail are still the reality within the accounting departments of many offices, which otherwise already rely on numerous digital tools in other departments. However, this is a mistake and shouldn't be the case!

This article takes a closer look at some of the benefits of digital accounting and how it adds value to businesses.

1. Time Saving

Probably the biggest and most important benefit of digitized accounting is the sheer amount of time it saves. No one wants to waste time, and it is frustrating to do things that machines can do better. Once the software of a digital accounting tool is customized to the company and tailored to its needs within a few days, accounting processes become easier. With the help of digital accounting tools, you can reduce the manual checking of employee expenses to a minimum. As a result, payrolls are already optimally prepared and employees no longer have to spend unnecessary time collecting, recording, and cataloging receipts. In this way, companies increase the productivity and satisfaction of their employees.

 

2. 100% Digital

Who hasn't seen entire offices filled with folders and binders? But this outdated image of accounting doesn't have to be the standard anymore. Implement fully digital accounting processes for your employees' expenses is another milestone towards a paperless office. Use a mobile app to scan receipts and have them automatically OCRed. There's no longer any reason to keep those physical receipts in countless binders for years.

 

3. More Organized

Another advantage is the order and overview that digital accounting provides. If you're looking for a specific invoice, trip, or expense for a specific employee, simply enter a name, trip, or invoice number in the search box of your accounting tool and everything you're looking for is right at your fingertips. If there's one thing that's out of date, it's stacks of folders that have to be combed through in search of that one form, closely followed by mountains of paper and what feels like meters of filing on your desk. Digital accounting tools allow you to digitally store and sort expenses into folders on your smartphone or computer.

 

4. Error Prevention

Mistakes are human, but they can quickly become very expensive and inconvenient in accounting. Many companies that rely on analog accounting only have an overview of their figures on a monthly basis or even only on a quarterly basis for large accounts. Far-reaching changes can be noticed usually when it's too late. In the worst case scenario, it is then difficult to stop developments that could endanger the company. Accounting tools such as Circula, for example, recognize duplicates of expenses submitted more than once and report them to the responsible employee. Automated calculation of flat rates according to values from the current BMF letter and automated processing of validated data and automatic account assignment reduce the controlling process to the essentials and thus massively reduce sources of error. In addition, no approvals are lost thanks to e-mail notification of pending approvals.

 

5. Legal Certainty & Compliance

With IDW PS 880 audited accounting software like Circula, optimized for German legislation according to GoBD and DSGVO standards, you can be sure that all data is safely stored. Circula offers companies audit-proof data storage, hosting in German data centers, procedural documentation for a voucher-replacing digital process and data storage for up to 10 years on audit-proof German servers. Thus, your sensitive data is kept absolutely safe and only easily accessible for you.

 

6. Use From Anywhere

The previous year has shown how important digitized data and processes are for an office. If the entire workforce was working from home, it was difficult to have to access the folders stored in the office. But even the filing process is immensely simplified with the help of an app on the smartphone. Not only can business travelers scan and upload their cab invoices on the go, the accountant in charge also has mobile access to all submissions. By leveraging new technologies, machine learning and a big focus on intuitive user interfaces, the problem of manual billing is solved forever. Thus, in addition to eliminating unnecessary piles of paper, digital accounting also offers great flexibility, as approvals can also be made from anywhere. You can approve or reject submitted expenses in both the web app and the mobile app.

 

7. Cost Saving

Of course, accounting tools cost money, but if you take into account all the obvious and hidden costs that a company spends each year on an outdated accounting systems, you will save a lot of money in the long run. Rental costs for premises that could be better used than just mere file storage space, printer cartridges, not to mention employee hours that could be used for more important things than cataloging, scanning and sorting invoices.

 

8. Integrated Interfaces

Practical add-ons of many digital accounting programs are interfaces to other systems in addition to their classic tasks. In this way, incoming payments can be noted directly, information transported and customer data maintained. This not only simplifies the accounting, but also the everyday workflow of the company in the long term. With Circula you already have standard interfaces and seamless integration with leading accounting systems, travel booking platforms and HR systems including DATEV, SAP, MS Dynamics, Onesto, TravelPerk, Comtravo, Workday and Personio.

 


Try Circula free for 14 days and digitize your accounting today.

 

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Sophie Jordan

Sophie ist seit November 2020 als Marketing Praktikantin bei Circula. Zur Zeit macht sie ihren Master in Marketing Management in Berlin.