How you store your accounting documents and data has a vast influence on your potentiality to plan as you move forward. When accounting documents are hard to restore or go missing, it forms severe problems in the event of a future audit.It restricts your ability to generate detailed plan budgets and cost analysis. Effectively managing accounting documents and then storing them to meet regulatory and legal requirements requires to be a major priority for every finance department.
Utilizing a Document Management System – DMS to store accounting documents/data assists the accounting department to cultivate enhanced controls in these five ways/manners;
Preparing for Audits: If you have a paper-based system; an audit is often essential for the accounting department as well as the auditor sector. The auditor may ask to see all of your invoices from 2011, for example, so you’d give them access to the auditor, and your filing cabinets would sit in a room and look through all of the documents.
Your accounting department is improved, allowing you to respond quickly to auditor preferences and maintain control over your business information/documents, if you have a DMS in action.
Creating Audit Trails: Accounting documents, financial, and data information are highly confidential, and it’s essential to be able to view who accessed what and when accounting documents.
Enabling Accurate Document Withholding: A paper-based system makes document retention overloaded and time-consuming phenomena.
You have to manually examine the age of each document and sort it by date, then cancel the files on a schedule. With document management system, however, it’s easy and convenient to capture document information like the invoice date and storage date, include that metadata in your document database storage.
From there, you specify how long you are going to keep various document types, such as financial statements, invoices, and the system takes care of when to discharge outdated accounting documents/data.
These old electronic documents are then either exported or deleted to off-site archives.
Detailed Cost Analysis is Supported: When your organization is performing a cost analysis, you often require to access information/documents that are outside your enterprise resource planning (ERP) platforms.
The details of your payments tend to be concealed in-depth actual invoices and other supporting documents, which makes detailed cost analysis and time-consuming difficult unless you have a Document Management System – DMS that is combined with your ERP systems.
Delivering Precise Budget Planning: When your company/business puts together a budget, you require access to information that is deeper than just your financial statements to precisely plan your budget and finances.
Financial statements reveal what you invest in a particular year, but if you want to know what’s behind a number, you’ would require to analyze/assess the invoices feasibly.
This kind of transparency permits business executives to analyze whether the previous spending is going to be essential for the coming year and ultimately to make wise decisions about whether to restore or change services instantly.
Ultimately, the process you implement when storing your accounting documents has an immense impact on your potential to control critical business information/documents/data.
By utilizing a Document Management System – DMS, these documents are all set for instant restores, enhancing the outcome of potential audits and increasing the accuracy of budget planning and cost analysis.
Moreover, if you are still unsure whether DMS can help achieve hundred percent results, talk to our Docupile professionals today!