Bookkeeping had come a long way. Gone are the days of hand writing your transactions down in an exercise book each time you made a purchase. Even the days of using an excel spreadsheet to record all of your transactions are further and further away now. Digital bookkeeping has been becoming more and more popular over recent years and for many reasons. Completing your book keeping through a digital avenue has many advantages and has proven to be very successful for those who are using it.
Using a digital bookkeeping system that has been specifically made for that purpose is going to make your whole process a lot quicker, easier and streamlined. It means that you can keep everything recorded in the one place, under correct categories and the risk of loosing information is a lot less likely than if you were recording it all via paper.
Productivity and Speed
Many digital bookkeeping programs have functions set up in them that help make the process of bookkeeping a lot quicker. There is the option to automatically feed your bank statements straight from your bank account into the program, the option to set up rules around certain transactions so that repeating ones are reconciled in the same way and it gives you a place where you can list all expenses and due payments. This means that the process is a lot quicker and more efficient. You are able to get more done in a shorter amount of time – leaving you time to focus on different aspects of your business.
Using a program that is able to download statements straight from your bank or financial institution means that the data is going to be a lot more accurate than if you were inputting each transaction manually. It means that all transactions are not only listed but they are in the correct date order and in the right section of the business. The last thing you want is to mix up transactions from one account and reconcile to another.
Most digital bookkeeping programs have the functionality to be able to download different reports for you to access the financial information of your business. You can download your balance sheet, profit and loss statements and much more.
Many of the digital bookkeeping programs are now cloud based. This means that the program is held on an external server and all you need is a subscription and an internet connection to be able to access it. You do not need to download software onto your computer and you are able to use it on any internet enabled device. This also means that you are able to provide your accountant or bookkeeper access to the accounts via a log in for the accounting program.
There are different subscriptions available within the different programs on the market. If you have employees that you have to pay wages and superannuation to there are subscriptions that cover this. If you are a smaller business with a very simple accounts section than there are also more basic subscriptions available. Whilst there are free programs available the recommended ones do come with a cost, normally a monthly fee. It may seem like a lot, however you need to think about how much extra time your bookkeeper or accountant would need to spend on the financials of the business if things are not recorded correctly and accurately. Overall it does become the more affordable option.
Another benefit of using a digital bookkeeping program is that if you do decide to move from doing your bookkeeping yourself to using a bookkeeper it means that they will be able to jump in and take over straight away. Most bookkeepers are familiar with the different programs available and have been trained in using them. They should be able to start without any issues of having to catch up or learn something new. We are becoming a very digital based world and this is one digital change that we are on board with.