The holiday season isn’t always a cheery time for your accounting department. Besides ensuring that your books and other documents are in order in time for the new year, your accounting staff has to help you keep track of your cash flow. This is a tricky task, to say the least, but one that can be simplified with the right paperless solution.
What makes managing cash flow challenging?
Several factors can complicate cash flow management during the holidays, including:
The last few weeks of the year are marked by an increase in consumer spending as people rush to buy presents or take advantage of holiday-exclusive promotions. For many businesses, the holiday season means a considerable jump in sales.
For money to come into your business, you have to spend some too. Many businesses ramp up their spending on advertising, recruiting seasonal staff, and purchasing inventory throughout the holidays. Some also spend extra on employee bonuses and gifts.
Your accounting team keeps track of all the money that goes in and out of your business while dealing with seasonal demands outside of work. For instance, they have to shop for the holidays like everyone else, especially if they have kids. This can put a strain on their energy and ability to concentrate during work hours, which may increase their tendency to commit mistakes.
A paper-based process for keeping track of your finances is slow and prone to human error, especially during the data entry stage. Even the tiniest inaccuracy can distort your figures and lead to erroneous conclusions. Furthermore, printed documents are easily damaged and misplaced, and are expensive to replace.
Paperless solutions simplify cash flow management
Paperless technologies, including document management systems (DMS) like PaperSave, reduce your dependence on paper and paper-based processes. They do more than just reduce the amount of paper you use at the office, though.
1. Eliminate the need for manual data entry
Paperless solutions allow you to extract and record data without the need for manual transcription. With PaperSave, in particular, you can take a photo of your invoice using the camera on your smartphone or tablet. The software then extracts the data on the photo and stores it in off-site servers as a digital file.
Because data is lifted straight from your supporting documents, there is little to no risk of errors on your records. With accurate data, you can make informed decisions, such as when to restock on inventory or how much to spend on New Year advertising.
2. Easily secure and retrieve supporting documents
Paperless solutions do not use paper documents at all. Rather, they use digital versions of these documents, offering several neat advantages.
For one, you won’t have to spend minutes scouring through file cabinets and folders to locate the right document. Instead, you can use the software’s search function, which will pull up the documents matching your query within a few seconds.
For another, digital files are easy to secure. Most paperless solutions are cloud-based, which means that your files are stored in multiple off-site servers. These servers are protected from malicious parties and unauthorized users by advanced cybersecurity features such as encryption and multifactor authentication. With these measures in place, you can rest assured that your documents are safe from theft and loss.
3. Ease burden on your accounting staff
By eliminating painstaking manual steps in the accounting process, paperless solutions allow your staff to complete their tasks faster. More than helping them finish more tasks during their shift, this gives them ample time and energy for personal matters, like planning their holiday vacation with their family. This helps enhance their work-life balance which, in turn, helps them stay motivated and focused on their work.
4. Enable remote working
Paperless solutions allow your accounting staff to monitor and manage your business’s cash flow even when they’re not in the office. This is because data and supporting documents stored in the cloud can be accessed anywhere with an internet connection.
The holidays are among the busiest times for your accounting staff. Paperless solutions like PaperSave remove unnecessary steps in the accounting process, helping your team keep track of your business's cash flow and resources with greater ease and effectiveness.
Discover the other benefits of going paperless by scheduling a free personalized demo today.