Digital bookkeeping is changing the way businesses do administrative and financial tasks. Digitalising documents helps to create a structured and efficient working system - improving quality and freeing offices from overflowing binders.
Does digitalising accounting processes sound complicated? First of all, there are a few steps you need to take to reduce the number of paper documents and daily manual work. But after these steps, the time and effort you put in will pay off.
In this first part of our four-part blog series, we'll help you figure out what you need to do to make a smooth transition to digital invoice management. We'll identify the potential obstacles you may face and solutions to avoid them.
What is digitalisation of accounting processes?
Digital accounting and its administration consists of the creation, transmission and storage of financial information in electronic format. The end result is that all your documents, payments and accounting processes are completely digital. However, to achieve this goal, you first need to start managing your invoices in electronic formats (e.g. XML).
Like most businesses, you manage invoices and analyse payments. Receipts, invoices, bank statements and any other documents supporting income or expenditure are the basis of your records, which must be kept for ten years in accordance with Lithuanian law.
Save time and energy!
Keeping your accounting records may seem easy, but you need to dedicate separate filing cabinets for paper documents, folders, and develop a methodology to find where and how to find any invoice received in the last ten years.
But how much time and effort does it take to manage all this? If you haven't thought about it, think about the space all these documents can take up.
The right digital solution can save a company a lot of time, space and hassle. You will no longer have to spend time searching for documents in different folders or constantly archiving any new document you receive. All this can be done much faster and easier with a digital solution. In addition, Lithuanian law no longer requires physical storage of invoices from 2021. This means you can spend more time on your business and its development, working with your team or clients.
Digital solutions ensure security
Moving from paper to digital account management not only speeds up accounting processes, it also makes them more secure.
You can invoice and send an invoice to your customers in just seconds, and see if it has been received and reviewed. You'll be sure your invoice doesn't get lost and gets paid faster. Meanwhile, invoices received are digitised and archived in one place.
Digital invoicing increases transparency, makes documents more accessible to those in charge and reduces the likelihood of errors. Once a paper (or PDF) invoice has been received, it usually needs to be entered more than once throughout the invoice management process (accounting system, reports, declarations). However, digital invoices minimise the need for data entry, which reduces the likelihood of human error and processing time.
Manage your accounts smartly!
See Part 2 for the best time to switch to digital invoice management.