Keeping accounts of your business is quite a complex and time-consuming matter. Especially, if your business is growing, its number of transactions also begins to increase and you will see that you need to keep a single transaction in different places in different ways. Then the process becomes even more complex. Different accounting software has arrived to make this complex process simple, making the traditional accounting process digital. So, let’s know the advantages or benefits of keeping accounts digitally from this article now.
Some Important Advantages or Benefits of Keeping Your Accounts in a Digital Way
You can’t stop telling the advantages or benefits of keeping your accounts in a digital manner. So, we’ll mention only some important benefits here. Let’s know the benefits:
1. Saves Your Time
2. See the Accounting Information from Anywhere, Anytime
3. Gives Improved Security in the Case of Accounting Data
4. Totally Digital
5. More Competitive and Efficient
6. Saves Your Cost and Money
7. Increases Innovativeness
8. Improves Flexibility and Adaptability
9. Ensures Accountability and Transparency
10. Detecting Error is Easy and Ensures Totally Flawless Information
11. Scalability
12. More Organized
13. Makes Compliance Easier
14. Helps in Real-Time Tracking and Reporting
15. Makes Tax Compliance Easy
Apart from these, there are many more advantages of keeping accounts in a digital manner. Let’s discuss these crucial benefits thoroughly for the time being.
1. Saves Your Time
One of the most mentionable advantages of keeping accounts in a digital manner is that it saves your time. Generally, you will need quite a long time to create cash flow statements, income statements, or balance sheets. But if you use accounting software, you will get them done in a shorter time. Besides, accounting software keeps track of each transaction, and invoicing, reminds debtors, keeps all other accounts, and prepares daily, monthly and annual reports all in a jiffy.
Thus keeping accounts through digital ways saves a lot of your and your employees’ time. You can use this time for other several crucial tasks.
2. See the Accounting Information from Anywhere, Anytime
If you use accounting software, you can see your business accounts from anywhere, anytime, which is a great advantage. For example, you can use the HishabPati app from your mobile. Again, you can use it from the browser on your desktop, tab, or laptop, you just need to have an internet connection. You can use the mobile app in both online and offline modes.
So, all your business accounts are in your hands and you can see them no matter wherever you are.
3. Gives Improved Security in the Case of Accounting Data
If you keep your accounts digitally, your accounting data gets secured in an awesome way. All your business data are kept highly secured under the multiple layers of high encryption algorithm, which is much safer and more secure than your files on the shelves of your office for sure. Only you and that reliable person of your business to whom you will give access will get access to these accounts. Again, these accounting data are not only kept secure but also synced automatically with time. i.e. they are auto-updated.
In the traditional desktop-based accounting system, you need to back up the data from time to time. Because there the data were saved on the hard drives of computers, which was quite a sensitive issue. You know that your computer’s hard drive can crash anytime and you can lose your crucial data. In digital accounting, you don’t need to bear all these hassles, the software itself automatically backs up all your information on your behalf.
4. Totally Digital
Your business will be totally digital when you use accounting software. You will keep all your business accounts on software, you won’t need so many notebooks, pens, and files like before. Again, if you have any paper receipt, save that carefully as a softcopy by clicking its image on your mobile. Then you won’t have to maintain so many paper receipts any longer.
5. More Competitive and Efficient
Keeping accounts digitally makes accounting professionals more competitive and efficient by minimizing wastage, and doing more tasks in a short time.
6. Saves Your Cost and Money
You can save around 300 hours a year by using accounting software. Thinking how? Just imagine how long it would take when you and your employees had to do all the monotonous and repetitive accounting tasks yourselves. You can save all your stationery costs regarding papers, pens, files, etc., and also save the storage place for files, printer cartridges, and the like.
Again, an ERP or employee resource planning software will cost you around BDT10,40,000. Compared to this an accounting software’s price is nominal. For example, the basic package of HishabPati is free i.e. you can use it without any cost, the premium package will cost you only BDT 300 monthly and the business package will cost you only BDT 500 monthly. So, it can be on your choice list as the software for keeping accounts of your business or shop.
7. Increases Innovativeness
The accountants or finance employees who will keep accounts digitally, will look for newer ways to do tasks and will try to innovate more advanced processes to keep accounts. As a result, their innovativeness will increase.
8. Improves Flexibility and Adaptability
Keeping accounts digitally is flexible for sure because you can keep accounts of your business from anywhere, anytime. The accountants who keep accounts under this system, try to keep pace with this new accounting system and its elements, and gradually they become adaptable to this process. This not only benefits them but also the entire accounting world becomes developed as a whole.
9. Ensures Accountability and Transparency
Digital accounting ensures accountability because this system is quite transparent and customers get inspired to get their work done by their selected accountants. As a result, customers’ confidence and accountants’ accountability both are increased making the whole process more transparent and reliable.
10. Detecting Error is Easy and Ensures Totally Flawless Information
Keeping accounts through accounting software makes error detection easier because the errors are detected automatically. Thus, it eliminates human errors. Various accounting applications ensure high-level accuracy and those contain different error-detecting features. So, your accounting data become out and out flawless.
11. Scalability
You can use the traditional accounting system for keeping your business accounts at the very initial stage of your business, but when your business gradually grows, its number of transactions also increases. So, the accounting process becomes more complex. You will need to spend a huge amount if you want to develop the whole accounting procedure overnight. In this case, accounting software can be your problem’s solution.
Because accounting software can increase its working capacity with the gradual increase of your business size. You won’t require taking any other steps on your own. This scalability is also another major benefit of digital accounting.
12. More Organized
Digital accounting is more organized because if you search for any specific file, you just need to search for it by typing the file name in the search bar and it will appear in front of you. In the like way, if you want to update any information about any employee or you need any information about that employee, you just need to search for that by typing the employee’s name. All files are saved in certain folders in an organized way. Conversely, in the case of traditional account keeping, you need to search for the file from the huge stack of files on tables or shelves, which would be much more laborious.
13. Makes Compliance Easier
You can easily share your accounting information or files in accounting software with your colleagues or customers. You just need to download the files and email them or you can use any online app like WhatsApp, Telegram, etc. to share them. Or, you can print out the files and share their hard copies.
Again, you can work on the same file with your colleagues in real-time or at the same time, that too without interfering with one another’s work. You all just need to sign in to the accounting platform. As a result, mutual compliance becomes easier.
14. Helps in Real-Time Tracking and Reporting
You need to integrate your online accounting software with your business bank account for real-time tracking and reporting, and you can see your business expenses, inventories, sales, and many other necessary details in real time or instantly. The dashboard of accounting software will help you keep track of all required data, metrics, or accounts. Bank reconciliation is quite a difficult and time-consuming matter, but accounting software makes it quicker and easier.
15. Makes Tax Compliance Easy
If you use accounting software, all your business accounts and different financial statements remain updated. That’s why collecting the required information and documents for filing taxes becomes easy and tax compliance also becomes easy for you.
Some Disadvantages of Keeping Accounts Digitally
Digital accounting has both good and bad sides. Because there is no unmixed blessing in this world. Let’s know the disadvantages:
Costs
Accounting software has some costs, but free software is also available, for example, HishabPati . Though you use free software initially, later you might need to upgrade later, which will have some costs. Again, you might need to offer training to your accountants to use the accounting software correctly. This training might have some costs as well.
Technical Difficulties
Several technical difficulties can occur during using the accounting software such as electrical problems or power shortages, your computer can be virus affected, any problem can arise due to improper handling of the software by any employee, and the like.
Unemployment
Accounting software helps a lot to keep your business accounts but it can also pose a threat of unemployment to many people. Because several employees were used to keeping accounts with pen and paper, or maintaining receipts, etc., those people might not be required to your business anymore.
Theft and Forgery
Many hackers are there who can steal crucial business information such as various financial data, crucial bank data, credit card or debit card information, bank loan information, and the like, and use it for forgery. That’s why you need to ensure the complete security of your important data.
System Failure
In the case of any automated system, you can lose your information due to any crash or hardware failure. So, you can back up some of your crucial information.
Health Issues
Excessive use of computers can cause different health issues like dry eyes, eyestrain, backbone pain, muscle discomfort, and the like.
Final Words:
From this discussion, it can be easily said that digital accounting’s advantages outweigh its disadvantages. So, know the advantages or benefits of keeping accounts digitally carefully from this article and choose the suitable software for your business with intelligence.
