Even if you are a tech-savvy accountant who has been using Xero or another cloud-based accounting solution for some time, it is possible that you are not utilising it to its fullest potential. The success of adoption of any digital tool depends on the people who use it and the processes they follow. If you have a client who prefers to drop off a bag of paperwork at your office at the end of each month, you may still be forced to do their accounting the old-fashioned way. This includes sorting through physical documents and manual data entry.
It is completely understandable why some small business owners may be hesitant to change. They have a lot on their plates and consolidating physical paperwork in one place may seem like a bullet-proof process to follow. To be fair - there may be a small group of clients for whom “shoebox” accounting will remain the only realistic way to do bookkeeping. However, from my experience of helping clients with their bookkeeping automation, I can say that for most people, digitising their bookkeeping processes is absolutely in their reach and best interest. After all, accurate accounting is essential to the success of any business.
All of this may be crystal clear to you as an accounting professional, but not as much to some of your clients. If you want to assist them in transitioning to more efficient and secure processes, you will need to have solid reasoning to back it up. These five reasons can help you convey your message and get even your most reluctant clients on board to digitise their document collection and processing.
1. Access from anywhere, anytime
One of the biggest obvious advantages of cloud accounting is that it can be accessed from anywhere with an internet connection. In theory, this should be a game-changer for small business owners who are constantly on the go. Nevertheless, if they still hand over physical documents to you, it leaves it at a missed chance. Throughout the month they need to constantly collect and keep track of all the paperwork while making sure not to lose any. Things can get even more complicated if they travel between different business locations or they need to collect paperwork from other stakeholders in the company on top of their own too.
With online bookkeeping tools like Datamolino, they can upload and access their documents wherever they are continuously throughout the month. They can either import documents via web app or snap a picture of their receipts using the mobile app. Every relevant person from the company can have their own access and import the documents themselves no matter whether they are in the office, meeting clients or working from home.
2. Better collaboration
Collaboration is essential in any business, and cloud accounting makes it easier than ever. As mentioned already, when documents are collected digitally, your clients are able to import all documents continuously throughout the month. In Datamolino, each folder gets assigned a unique email address, so your client can easily forward their email invoices for processing as soon as they receive them. This makes a world of difference as it helps ensure you will not have to hunt your client for remaining paperwork at the last minute.
You can also easily collaborate on documents with your client just like you would in “real” life. For example, in Datamolino you can clarify any questions or instructions in the comments underneath each document. Documents are clearly labelled and organised in a searchable online archive, so both you and your client can understand the status of each transaction. Identical documents get flagged as duplicates, so your client does not need to worry about importing the same document twice by mistake either.
3. Improved security
Dealing with paperwork can create a range of security issues that can cause headaches for accountants. Physical documents tend to get easily damaged or lost. As for digital copies, you as an accountant have limited capability to store them locally in a secure way.
Cloud based tools including Datamolino remove the need for physical storage space. Your clients data is stored in a central cloud archive for as long as you have an account with us. Original documents are automatically exported along with the captured data into Xero, so you and your client are not locked-in. This gives your client peace of mind ensuring their documents are safely backed up and everything is easily accessible in their Datamolino folders.
4. Time savings both for you and your client
At Datamolino, we believe that nobody starts a business with the intention of drowning in paperwork. This applies to both you and your clients. Fortunately, many bookkeeping tasks can be automated, freeing you from tedious manual data entry tasks and saving you and your clients valuable time.
With Datamolino, time savings start with automatic data capture from receipts, bills and invoices. Additionally, correct tax code, ledger account, and tracking categories get assigned to each document based on your automation settings. Not having to manually code each transaction leaves you with more time to focus on delivering value-added activities. By automating the time-consuming and repetitive aspects of bookkeeping, you can provide more personalised and impactful services to your clients.
5. It is good for their business
Implementing an effective accounting process is essential in ensuring your client’s financial records are accurate and up-to-date. In return, accurate financial records are crucial for your client to make informed business decisions.
By processing invoices as soon as they arrive, your client acquires a real-time view of their financial position. This allows them to make adequate decisions about spending, cash flow and future investments. By knowing exactly when invoices are due and when payments are expected at any given time, businesses can plan ahead and avoid any cash flow shortfalls and reduce likelihood of errors, such as double or missed payments. And ultimately this points to why you want to help your clients streamline their document collection and processing in the first place - so they can focus on their business