Benefits Of Digital Document Storage For Each Area Of Accounting

Should your accounting department switch from paper file retention to digital files? The answer may be "yes," but this may be for different reasons depending on the types of documents and the particular section of accounting they come from. Here are a few of the specific reasons to digitize each of your internal accounting departments. 

1. Accounts Payable and Receivable

Compared to many other accounting functions, these two departments often generate a lot of paperwork. From receipts and bills of lading to estimates and invoices, this paperwork adds up quickly and can take a lot of office space to store. In addition, many different departments or staff members may need information from these files.

The goal of scanning these should be to reduce the size of paper storage and to provide access to more staff members at different locations. The more that personnel can research on their own, the less your AP and AR departments will have to do. 

2. Payroll and Human Resources

The payroll and human resources departments may also suffer from paperwork overload, especially if you use paper checks and time cards. Adding to the volume is the fact that both departments are also generally required to retain much of the paperwork for years — and sometimes forever. File cabinets and storage boxes are a big liability risk for the company due to the amount of personal data in payroll files.

Virtual documentation of payroll and HR files should strive for the best-quality cybersecurity features you can buy. Access should be seriously restricted, which is often easier to accomplish with digital files. And any digital storage system should also have a built-in method for abiding by the legally required retention schedules for each type of scanned document, purging these to prevent unnecessary liability. 

3. General Ledger and Company Financials

How well does your business protect its own company secrets? Information about company finances, jobs, loans, and even future plans could damage it in many ways if things got out. And while the actual financial statements may be designed for public consumption, the work that goes into making them should be protected from outside eyes. 

Paperwork that goes into the highest level of company financial files usually needs much less space than other departments. But it should be stored with the highest of security, and access should be limited to the smallest group possible. These documents will likely involve a wide variety of papers, including everything from meeting notes to accountant audits. So they may need a specialized organization system. 

Obviously, each area of accounting comes with its own document storage and organization needs. By focusing on how these benefit the company and why, your staff will assuredly see the value in making the switch. Start by consulting with a finance document scanning service in your area today to learn more.