Over the past several years, the accounting and financial industries have seen quite a bit of change – including a swift and impactful change to more digital accounting.
So, what is digital accounting exactly?
Efforts to switch more accounting processes to electronic and digital methods have been ongoing for the past couple of decades. Digital accounting and bookkeeping is a natural progression for the industry due to the increased demand for electronic options by clients and the development of intuitive and helpful electronic tools used for process management, such as electronic signatures.
What are the benefits of switching to digital?
Transformation into digital accounting is an important part of the improved accounting experience for reasons, including:
- Scalability: As accounting business growth ebbs and flows, digital accounting allows firms to more easily expand to accomodate change. New software tools, software updates, the ease of information transfer, and other aspects promote enhanced scalability across the board.
- Convenience: Digital accounting processes are more convenient for business owners, employees, and clients due to the ability to allow processes to be completed remotely and on various devices.
- Security: In the world of accounting, there’s a lot of data and paperwork. Digital accounting solutions offer more security than traditional paper processes due to better and safer data storage options, fraud prevention options, and more control over viewership and access to data.
- Speed: Digitization has facilitated accountants completing IRS and tax processes faster with their clients through forms and paperwork being completed more easily, accurately, and bypassing mailing and meeting wait times.
- Usability: Accountants and their clients enjoy better flexibility and usability with digital accounting. With the ability to connect the individual processes used each day together in a fluid manner, it’s easier to get more done in a more streamlined and workflow-friendly manner. Integration services, such as Zapier, have further improved and simplified integration efforts making efforts more available to practically every kind of user.
The Process of Switching to Digital Accounting
Switching to digital accounting is going to look different for each business and individual. It’s essential to plan your roadmap for implementation and organize it in a way that works best for you, your employee, and your clients. Below, we’ve listed some essential steps to help guide you to a successful transition to digital.
- Make a List: Thoroughly list all document types used regularly and processes and indicate which ones can be switched to digital accounting.
- Outline the Process: Document and outline how you want various software solutions, such as electronic signatures, used within your organization so that it’s clear to all employees and becomes standard company policy.
- Ensure Compliance: When it comes to accounting and financial paperwork, following important compliance requirements from institutions such as the IRS or the FDIC’s know your customer (KYC) rules are essential. Be sure that the software and processes adopted follow proper guidelines and enable compliance at every turn.
Learn more here about how Foxit eSign electronic signatures can help with accounting and tax compliance requirements.
- Choose the Right Software: Whether it’s accounting software (such as Quickbooks), customer relationship management software (such as SalesForce), or electronic signature software like Foxit eSign, choosing the right solutions are important. Carefully review the options and capabilities of each selection to ensure they can meet your business needs and provide options cultivated to support you, your team, and your clients.
- Choose the Right Storage: Digital documents require digital storage, and there are a lot of storage options out there. Take some time to check into data and document storage solutions, like DropBox and Google Drive, to see what will work best for you and your business. On the bright side – no more bulky filing systems!
- Get Everyone On Board: A switch to digital accounting involves the entire company; therefore, all employees and departments must be involved in the process to ensure a smooth transition. Communicate with employees and address concerns, answer questions, and gauge what each department’s needs are.