Even today, there may be businesses which still rely on traditional methods for bookkeeping. This could be due to a variety of reasons such as cost considerations, lack of digital savviness or just a preference for legacy methods. Whatever the case may be, going digital can help SMBs enjoy a number of benefits when it comes to bookkeeping.
1. Improving efficiency and reducing paper waste
While changing from a paper-based process to digital tools can seem like a sudden shift, there are numerous benefits to be had in the long term. Digital solutions can help improve accuracy in bookkeeping, which becomes critical when planning for rising prices due to inflation. Unlike paper-based methods, there will be very few or no errors at all with digital tools and no wastage at all.
If you have multiple teams collaborating on certain types of expenses, such as business-related travel and reimbursements, it may be easier to get them to collaborate on digital platforms instead of moving paper back and forth.
2. Central storage of scanned receipts and expenses
It can be inefficient for finance teams to retrieve receipts from employees for their expenses that need to be reimbursed. Often this is done at the end of the month or payment cycle and it can be cumbersome for everyone to collect the receipts, scan and send them to the person in charge.
Instead, if you can keep one central storage location where employees can scan and drop their receipts as and when they incur the expense, it will save a lot of hassle at the time of payment. Employees can save time and increase their productivity, while your HR and finance teams can also have access to the folder and check the receipts as needed to ensure that all financial records are accurate and up-to-date.
One solution that can help accomplish this is Microsoft 365 Business. The cloud storage service, OneDrive, that is included in the subscription, can be used to store and share scans of receipts and expenses. With the subscription, you will also be able to use Microsoft Excel for organising and analysing financial data and Microsoft Forms, which can help you collect feedback or comments from employees via digital forms if needed.
3. Dedicated bookkeeping SaaS tools
There are also SaaS (Software-as-a-Service) platforms like Quickbooks and Xero that are designed to help small and medium-sized businesses (SMBs) simplify bookkeeping by providing an all-in-one solution for managing finances. These platforms offer a range of features and tools that can help SMBs streamline their bookkeeping tasks, including automated data entry, real-time updates and customised financial reports.
Some of these tools will also be capable of integration with your other business tools such as invoicing and payment processing software, making it easier to manage multiple aspects of a business.
4. Cybersecurity solutions to protect critical finance data
Financial data is sensitive and confidential to every business, and its unauthorised release can have serious consequences, including exposure to fraud, monetary and reputational damages. This is why you need robust cybersecurity solutions to protect such data in your bookkeeping records.
In addition to protecting against losses, security solutions are also important for regulatory compliance. Many industries have strict rules and regulations governing the handling of financial data, and businesses that fail to protect this data adequately may be subject to fines and penalties. For example, the Payment Card Industry Data Security Standard (PCI DSS) requires businesses that handle credit card transactions to have appropriate security measures in place to protect against data breaches.
Singtel offers cybersecurity solutions which include endpoint protection and unified threat management, both of which can help SMBs protect their financial and bookkeeping records from cyber threats.
5. Backup and recovery to retrieve books lost in accidents
Even if you have taken appropriate measures to defend against external cyber threats, there could be other accidents which can lead to the loss of or damage to your bookkeeping records. For example, your files could be stored in a drive that may crash, or a laptop could be misplaced or even an accidental hit on the delete button can erase critical files.
To retrieve your books in these scenarios, you will need to back up all your essential files. Cloud-based backup solutions can help you simplify this process, as you will be able to avoid the cost of buying physical storage and you will also have fast recovery options. Singtel’s Cloud Back Up and Recovery solution gives you the ability to do automatic backups and data protection across your business cloud applications and endpoints. You get the security and simplicity of the cloud along with the flexibility to pay for what you use.
