If, like many others, you’ve been buying tickets on your phone for a while and do most other tasks on your computer or smartphone, then digital accounting may be right for you. We will show you how digital bookkeeping works and what you should consider with regard to the principles of good management and storage of books, records and documents in electronic form as well as data access (GoBD) (GoBD).
How does computerised bookkeeping function?
Employees in the accounting department record these transactions as part of bookkeeping so the business can keep track of its income and expenditures. All financial dealings can be recorded in this fashion. And that is precisely the point of computerised accounting. But how does this method of accounting diverge from the standard?
Within the framework of digital bookkeeping, the necessary documents are no longer processed in paper form but rather digitally. This means that invoices are prepared and transmitted digitally for outgoing payments, and that invoices received are scanned and filed electronically. Furthermore, there is accounting software that may be used to perform the various accounting tasks.
Paper is no longer necessary when preserving digital books. Since there are adjustments to be made when moving from a “conventional” workplace to a paperless one, the next section explains in detail how to implement digital bookkeeping procedures.
Setting up the right conditions is the first step.
An organization’s hardware as well as its staff will be affected by the switch to paperless accounting. If you want to successfully deploy digital accounting, you must be involved in both.
The hardware you purchase should make it as quick and simple as feasible for you to scan any new papers that emerge. However, you can currently scan receipts with your smartphone using apps like sevDesk. The need for reliable portable computers exists even in paperless offices.
There are two main considerations when talking about the workforce.
Not everyone will adjust to digitalization in the same way due to the sort of change it causes. It is imperative to explain the advantages of switching to paperless accounting as soon as possible. Consider your employees’ feelings and needs, and give them time to get used to the new practises.
Make sure your workforce is informed on current events. Nothing is more frustrating than having the desire to digitise but without the necessary skills and understanding. Make sure you obtain the appropriate instruction and training.
Step 2: Speak with a tax expert.
Additionally, it is critical that you discuss your objectives with your tax advisor. Step 4: Ask your tax office for suggestions on the best accounting software. On the one hand, you can get advice about upcoming changes from them. You also clarify whether your tax office is able to offer the cooperation online and whether it wants to do so. Additionally, it might be possible for your tax expert to train your team.
Step 3: Invest in reliable bookkeeping software.
Paperless accounting requires a system that can handle all the tasks involved, such as the automatic uploading of invoices and the digitization of receipts. It’s also crucial that it functions in line with GoBD (you can find out more about this in the next section). Discuss the best software options with your accountant. Get an estimate of the total cost of the transition if you can. A seemingly inexpensive piece of software can rapidly become expensive when you include in the cost of training staff, doing routine maintenance, etc.
Step 4: Have your tax office evaluate whether your digital accounting fulfils tax compliance
When you are ready to begin operations, get in touch with your tax professional. Once all of the conditions of the GoBD have been met, it will be revealed.
standards and responsibilities
Paperless accounting helps streamline and speed up a number of operations. However, due of the digital nature of everything, additional rules and guidelines must be followed. While it’s important for digital accounting to adhere to the Guidelines for Better Business Documentation (GoBD), it’s also necessary to document the processes involved. We present both to you here.
You have likely already encountered the term “GoBD” several times in your life. In general, this is a requirement of the Federal Ministry of Finance, on the basis of which all tax-relevant papers in a firm are correctly preserved and handled .
Documentation of Procedures
A company’s processes must also be documented. To comply with the requirements of the GoBD and the German Commercial Code, you must detail the technical and organisational measures taken by your company to make all stored documents verifiable and traceable. This means, for example, that you have to determine in advance how exactly receipts and incoming invoices are scanned and booked so that the quality of the scans is proper and errors are prevented. You may learn all about the process documentation in our associated article.
In the guide to accounting automation, we suggested the best software for your needs. The subject of which accounting software for small businesses arises frequently in discussions about going paperless. In this case, sevDesk is a viable option.
Since paperless accounting necessitates scanning in all paper receipts, the software you choose should be as user-friendly as possible. The sevDesk app allows you to scan your receipts with your smartphone and upload them instantly. Features include digital invoice processing, digital payment of invoices, and automated open invoice vs. paid invoice comparison. Cash transactions can also be recorded in an electronic cash book.
Let’s review the information offered in this piece. The transition to digital accounting will, without a doubt, require an initial investment of time, money, and anxiety. However, there are numerous advantages to eliminating the need for paper receipts, invoices, and similar documents. Many duties can be completed more quickly and more accurately with the help of digital accounting, and monotonous repetitive jobs can be avoided altogether with the use of automation.