How Does Electronic Document Management System Reduce Costs of Accounting?
An electronic document management system comes with a variety of benefits. It guarantees data safety and remote access to information, allowing you to work from any location. E-DMS solutions also provide a high level of flexibility while managing large volume data, enabling policy and procedure changes at any time.
But, most importantly to most business owners, it helps you reduce the costs of accounting. With E-DMS, you can lower the storage space utilized by your business, decrease the number of printed copies, streamline business processes, and reduce unnecessary staff, among other benefits. That’s what we focus on in the following article.
If you want to know how electronic document management can help you reduce costs of accounting while also increasing productivity, look no further. Below, you will find more details on E-DMS’ benefits to improve your business!
Reduced Storage Space Required
Electronic Document Management systems will help you reduce the amount of storage space required by your accounting department. In traditional accounting, you will have multiple copies of the same document in different locations. With E-DMS, you will have a single copy of each document in cloud storage.
This way, you won’t need to store that many documents in your office. It will also make it easier for your or your employees to find the required files; you can just access this data from a laptop or a smartphone, wherever you are, facilitating remote work and crisis management.
Moreover, it will work even better if you use digital accounting and HR tools, such as pay stub generator, invoice and expense tracking system, financial reports software, etc.
Reduced Number of Printed Copies
In order to maintain a paper trail, most business owners print all the important documents that pass through their hands. This way, they can use these copies to support their work and to report to their clients, suppliers, and employees.
However, printing all the documents you receive from customers and vendors is an incredibly time-consuming and costly process. Not only do you need paper and toner, but it also takes some of your staff’s precious time that could be spent more productively.
With E-DMS, you won’t need to print all your documents. Instead, you can view them directly on your computer or mobile device, and even send them digitally to your clients and business partners.
Streamlined Business Processes
With E-DMS, you can streamline business processes. You will be able to create and manage a variety of business documents in a single place, including invoices, purchase orders, and delivery notes. It will help you stay organized and eliminate any chance of lost files or wrong information.
For instance, you can use an e-signature tool to allow customers to sign contracts digitally. You can also create customized workflows that will help your employees manage the different stages of the sales process.
This way, you won’t need to use multiple systems for business processes that can be easily combined into one. It will also make your accounting department more efficient by eliminating the need to transfer data from one system to another.
No Unnecessary Staff
E-DMS can help you save money by cutting the number of staff members from your accounting department. This can be done by automating repetitive tasks that could be handled by automated software. You won’t need to hire a person to manage a paper filing system, since the system will do it for you.
In fact, having an E-DMS solution will help you reduce the number of employees without affecting their productivity. Quite the opposite. With E-DMS, you can easily delegate tasks among your employees and streamline your business processes, which will lead to higher efficiency and better results.
Improved Collaboration Between You and Your Business Partners
E-DMS will help you improve the collaboration with your business partners, partners that are probably scattered around the world. You can send them a document for signing or signature, and they can sign it digitally.
Moreover, it will help you keep track of the different contracts signed with your business partners and improve transparency. For instance, you can set up customized workflows based on the type of document, such as an invoice. It will allow you to automate the process and create a digital audit trail – all without wasting time or losing information.
Secure Data Access
One of the biggest benefits of e-document management is that it provides secure data access. You can grant access to different users so they can view documents, modify, and send them out. With E-DMS, you can also restrict your employees’ access to certain files, so they will only be able to view them without being able to edit or share them with other people.
This way, you won’t have to worry about someone misusing sensitive information about your clients or business partners. Furthermore, you won’t have to look through every single document to make sure that nothing confidential or inappropriate has been sent out by mistake.
E-DMS tools also come with several encryption options that will allow you to protect your data from unauthorized access. Your employees can use these encryption tools to send out sensitive documents, while the recipients are the only ones who will be able to open them. This way, if someone tries to hack into your system, these security options will keep your data safe.
As you can see, electronic document management helps cut the costs of accounting. It reduces the amount of storage space needed, the number of printed copies, the amount of staff needed, and many other expenses related to traditional accounting.
On top of that, E-DMS solutions also help you improve collaboration between your business partners, streamline business processes, lower the number of unnecessary staff, and increase the security of all your data.
All in all, if you want to eliminate waste and improve efficiency in your accounting department, you should consider implementing an electronic document management solution.