Digital Bookkeeping vs Paper Checks and Snail Mail Invoices
As a small business owner, you get to decide how to handle your bookkeeping and financial documents. If paper checks and snail mail invoices give you peace of mind, you should hang onto them. But before you shun important digital bookkeeping alternatives, here are a few things to consider.
Digital bookkeeping systems are more efficient than paper
As a small business owner, you probably do it all but perhaps you shouldn’t. Bookkeeping is critical to your company’s financial health so it’s important to get it right. Fortunately, you don’t have to hire a full-time bookkeeper to get the professional-level service you deserve.
The most efficient bookkeeping professionals use apps and programs to track your finances remotely. They store your data in a secure cloud environment and sync your accounts so they’re always accurate. P.S. They can do it cost-efficiently and without paper.
Why choose digital over paper?
If you’ve never considered going digital, you should at least consider a few of the reasons why.
- You’ll have access to your digital bookkeeping records wherever you are.
- You can share digital letters, invoices, or media instantly.
- You can retrieve documents 24/7.
Digital bookkeeping access means no midnight trips to the office to review a paper invoice or a canceled check that’s filed away in a cabinet. That overstuffed filing cabinet is also a factor. When you retain paper versions of your documents, your stacks of paper grow a little bit every day. Eventually, you’ll have to make room for them somewhere. Digital documents need minimal storage space.
Fires, tornadoes, and floods!
When your records are stored digitally, you always have an offsite copy. If a disaster hits your office, paper is one of the first things to go. With a digital system, an authorized user will always have instant access to your documents. You won’t have to spend days or weeks reconstructing financial records from burned or waterlogged paper documents.
Paper destroys trees
Of course, you already know that.
The IRS says digital is OK
As a business owner, the Internal Revenue Service wants you to maintain your tax-related documentation for 3 to 7 years. Fortunately, they don’t force you to hold onto paper documents. The IRS topic, “What kind of records should I keep?”, acknowledges that many businesses rely on technology for record-keeping, accounting, and other financial functions.
It further explains that you can use any recordkeeping system that complies with their guidelines and provides the required information. If the IRS says it’s okay for businesses to use electronic software and other electronic systems, perhaps it’s time for you to get rid of your paper checks and snail mail invoices.
Contact Goode Bookkeeping & Consulting
If you want to learn more about the benefits of professionally managed digital bookkeeping services call us at 860-659-6543 or complete our consultation form.