Many small and midsized businesses find documenting financial processes manually to be inefficient. Activities such as filing, data entry, copying and printing can be cumbersome and take time away from strategic tasks. Not only can technology simplify documentation tasks, it can also help allow a small business to reap other rewards. The following are three reasons to use technology to better support your financial documentation processes.
1. Helps Cut Costs
By documenting financial processes with a technology solution, such as a cloud-based management system or onsite software, you can help reduce the amount of space needed for archiving paper documents, potentially eliminating the need for offsite storage. A financial documentation solution also greatly improves data accessibility, allowing you to organize and index your data electronically. Further, these solutions can help reduce your company's paper cost and carbon footprint. "A typical office disposes of about 350 pounds of wastepaper per employee per year," the Natural Resources Defense Council reports.
2. Helps Increase Productivity
Technology helps your business automate paper processes and eliminate duplicate efforts, which can in turn help reduce labor costs and increase productivity. Further, manually entered data points are prone to error, which can lead to costly delays or issues for your business down the line. If you use disparate systems to enter financial data, for instance, the potential for error increases and the chance for rework, audit or delayed payment of fees become greater. By implementing a one-stop repository solution, you can help eliminate this issue and free up resources to pursue other opportunities that could positively affect your bottom line and strategic position.
3. Helps Reduce Risks
In the event of a natural disaster, such as a flood or earthquake, your business is at risk of losing valuable financial and other information if you store all your files in a physical format. A breach of personal information due to theft or unauthorized access to financial documents can lead to costly legal issues and loss of intellectual property. Documenting financial processes with technology can help improve compliance and document retention by helping your business maintain an audit trail.
As your business grows and financial documents become unmanageable, it may make sense to invest in a document management solution. These solutions can efficiently assist with data capture, content management, records management and optimized workflow to name a few. This can help reduce costs, save time and reduce risk — factors that are integral to any small or midsized business.
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