Digitisation of accounting - process and benefits

You are probably most familiar with data digitization in connection with the IT world. But what about the digitisation of accounting - do you know what to think of this term and how to automate and simplify accounting processes? We will answer your questions in this article. After reading it, you'll have a clear understanding of what digital and online accounting looks like, and you'll know that it's the right path for your business.

THE MOST COMMON PROBLEMS IN ACCOUNTING

How are your accounting processes set up? We mostly encounter the following problems with our clients:

  • There is no supporting documentation for the accountant and it is not clear who handed over the receipts, when and how.
  • There is no designated lead person in charge of collecting all accounting documents.
  • The documents must be handed in individually by each employee to the accountant or sent by post.
  • All archiving of documents is done in paper form.
  • Documents must be scanned, copied and filed in folders.

Is this system familiar to you? If so, you should know that there is a solution that will turn your accounting into paperless and simplify your individual accounting processes. This will save you costs and, most importantly, time.

THE CONCEPT OF DIGITISATION OF ACCOUNTING

By digitisation of accounting, you can imagine a process whereby all accounting documents are first converted into electronic form and then handled automatically: documents are approved, posted and archived more quickly using the chosen system. Thanks to digital accounting, you have immediate access to accounting outputs and better control over the document processing.

DIGITISATION OF ACCOUNTING IN 4 STEPS

1. DATA COLLECTION

If you decide to digitise your accounting, you first need to set up a simple and fast process for collecting and uploading data. In other words, you need to gather all your documents in one place. For this purpose, in the vast majority of cases, a secure cloud storage is used, which must meet all European and Czech standards.

The undeniable advantage of cloud storage is that you don't have to worry about where you are. You can upload your documents from anywhere, anytime, anyhow. Simply convert them into digital form - by taking a photo, scanning them - and then simply upload them via computer or email to the storage.

WHAT IT LOOKS LIKE IN PRACTICE

We make a secure shared folder available in our office for our client to upload digitized documents for posting. These include PDF invoices, electronic bank statements and other documents.

In case the client has only a paper version of the document, it is enough to scan it or take a photo with a mobile phone. For example, you can take a picture of a fuel receipt and upload it to the storage in seconds. This makes it easy to avoid unnecessary paperwork - you don't hand the document over to anyone, copy it or archive it.

2. DOCUMENT PROCESSING - DATA EXTRACTION

The cloud storage must be connected to the system where all documents are automatically prepared for subsequent approval and processing. In other words, it is about extracting the content of received documents. This is provided by artificial intelligence, which can automatically read information from invoices and other documents. The accountant does not have to manually overwrite information or fundamentally manually edit the extracted data.

The error rate is usually minimal, which saves a tremendous amount of time. The digital documents are then stored as structured data for further editing.

WHAT IT LOOKS LIKE IN PRACTICE

There are a number of document processing systems on the market. For ourselves, we recommend the wflow application, to which we have connected our cloud storage. We have had excellent experience with wflow, and we have verified that the error rate of the extracted data is no more than 2%. Thus, there is almost no need to manually edit the data.

3. APPROVAL AND BOOKING

You can now easily edit saved documents, assign them to orders or payment priorities. The approval process itself usually has several levels, and the work can be divided among several people. The moment you approve an electronic document, it is automatically posted to the synchronized accounting system. Ideally, posting takes place by simply confirming the pre-prepared data.

WHAT IT LOOKS LIKE IN PRACTICE

For each document, we know exactly what stage of editing or approval it is currently in. After posting, the documents are also locked against unauthorised modifications, so we can be sure that no unwanted changes will occur.

4. ARCHIVING

The posted documents are immediately stored for long-term archiving. Documents are marked with qualified time stamps and signatures for audit purposes.

WHAT IT LOOKS LIKE IN PRACTICE

The main advantage of searching the archive is its clarity. In addition, we supplement individual documents with descriptions, which make it possible to find the documents at any time within a few seconds.

THE MAIN ADVANTAGES OF ONLINE ACCOUNTING

Saved time associated with manual data entry and lower invoice processing costs are far from the only benefits. Digitized accounting brings you other benefits as well:

  • The documents are accessible to authorised persons at any time and from anywhere. It doesn't matter if you have an in-house accounting department, are an accounting firm or outsource your accounting.
  • You can easily mark all information such as posting details, costs and status.
  • Get rid of paper and reduce storage requirements. At the same time, printing costs are reduced.
  • Digital documents are faster and easier to search than paper ones.
  • Your accounting documents are safe. There is no risk of theft or damage due to floods, for example. Your data is simply stored in the cloud. It's easy to manage, suitable for smaller companies without an IT department and secure.

YOU WILL SAVE MONEY WITH DIGITIZED ACCOUNTING

If you decide to digitise your accounting, don't expect change by the next day. We know from experience that it can take several months to get the systems right and implement new processes.

But it is certain that the subsequent savings in time and costs are worth it. Thanks to online accounting, errors due to manual transcription of data are eliminated. There is no duplication of documents, invoices don't have to be emailed, everything is processed in one place. The result is simplified and unified accounting processes.

Do not hesitate to contact us if you are thinking about digitizing your company accounting. This will save you most of the manual work with documents and the associated costs. At the same time, you will have visibility and control over your accounting at any time and from anywhere.


Contact information

Write to us and we’ll get back
to you within 24 hours.

News from our blog