Now, let's look at the "Paperless" question. I prefer to address this in the context of paper-less which to me infers less paper, versus no paper at all. If you are asking yourself why, the reality is that paper documents are still very much a part of our culture. So even though, we now have the option to receive those paper documents in an electronic format - the strange thing is, we still tend to print-out a hardcopy version to save in our reference file. Reasons for why we do this include the following: we are worried that we will lose the electronic copy or not be able to find it among the myriad of images we save, we need to provide a copy to our bookkeeper or accountant, we think saving it electronically will require extra work, or simply because we're just not comfortable with the idea of not having a papercopy.
So what do I mean when I say less paper? I look at this as a way to store the majority of and not necessarily all of a business's documents electronically. I find that less paper is best achieved when we take the time to look at a business's accounting processes and paper flow. What if you could save that copy of your bank statement, purchase receipt, etc. into your accounting software or a document management system without having to do a lot of extra work? This is possible by simply linking, uploading, scanning or snapping images into a simple and easy to use software that integrates with your cloud accounting software - the best part is that now those electronic images are safe, secure and easy to retrieve, and yes you have also audit-proofed your accounting files because you will never need to search for a supporting piece of paper only to find that the document has been misplaced, or has faded and is illegible.
If you have been thinking of setting up a paper-less accounting system or are ready to to start click here to check out two of our favorite receipt and document management apps to help you get started!
First, let's take a brief look at cloud accounting or cloud computing. Cloud computing is simply a fancy name that just means the internet, and cloud accounting refers to accessing accounting software programs or "apps" as they are now called, over the internet without the need to install the software on your computer. This also means that your data is also stored over the internet rather than on your computers' hard drive. The transition to cloud based software is a relatively recent phenomenon that has been developing for about a decade in correlation with the technological advances being made to smartphones and tablets, with about 45% of small businesses adopting this technology.
Using a cloud-based accounting app provides the small business owner with many benefits, such as:
In today's fast paced business world there is a lot of discussion related to "Paperless Systems" and "The Cloud." Is it is really possible to be totally paperless, and is all the hype about the cloud and the benefits of using cloud applications really all what it claims to be???