Every company is obliged to record its business transactions completely and verifiably. If this is done on paper and by hand, it can be very time-consuming. A digital accounting tool promises to remedy this situation and offers numerous advantages. What advantages does a digital accounting tool offer, why is it now one of the standard extensions of CRM systems and what should you look for when choosing a software, these are the questions we want to address in this article.
What is a digital accounting tool?
A digital accounting tool is a software application designed specifically for managing financial transactions and accounting for businesses. Such a tool automates many manual processes related to accounting and allows managing business receipts, invoices, bank statements, payroll and other financial documents more efficiently. Digital accounting tools have various functions: For example, they can be used to capture business receipts from various sources such as emails, scans, or images; automate the creation of invoices and reminders; and automate the categorization and posting of transactions. You can create financial reports such as balance sheets and profit and loss statements, and bank account management and payment processing are also possible.
What are the advantages of a digital accounting tool?
Compared to manual accounting, digital tools offer numerous advantages:
Save costs and time
Digitized accounting saves costs and time. The need for paper is drastically reduced, and folders, filing cabinets, storage rooms and administrative staff are also no longer required to the same extent as they were with paper-based accounting. Because all documents are available digitally, they can be retrieved with just a few clicks. Time-consuming leafing through file folders is a thing of the past, as is the sorting of receipts. These can also be easily sent by e-mail, you no longer have to pay postage, and there is no longer any need to go to the post office.
Location-independent access
Because all data is stored centrally and can be accessed via the Internet, viewing documents is no longer restricted to the office and work can be done regardless of location, which is a great advantage, especially in times of home offices and remote work.
Accuracy
Automating accounting tasks reduces the risk of human errors such as typos or incorrect calculations. Automated calculation functions, integrated validations and checking mechanisms improve the accuracy of accounting, and errors can be detected and corrected more quickly thanks to change history.
Transparency
A digital accounting tool creates transparency in several respects. It is important for the management of a company to be able to quickly gain an overview of its finances. With a digital accounting tool, this is possible in real time, which makes it possible to react more quickly to financial challenges. It is also possible to have financial reports generated automatically: Profit and loss statements, balance sheets or cash flow statements can be retrieved at the click of a mouse. The ability to track all transactions down to the document level also makes it easier to review entries, identify errors or discrepancies, and understand financial relationships. Digital accounting tools make it possible to control and restrict access to financial data. Access levels can be set so that only authorized individuals can access specific financial information.
Compliance
Digitizing accounting also makes it easier to comply with legal requirements, because accounting software can automatically ensure that all relevant data is recorded and retained and that entries are posted correctly. A company can thus be sure that all legal requirements are met. This leads us straight to the question:
Why are accounting tools a standard extension of CRM systems?
There are a variety of reasons to integrate an accounting tool with a CRM system: Linking financial and customer information supports effective customer service, receivables management and enables informed decision-making, efficient order and invoice processing, and an overall more holistic view of customer relationships.
However, a key reason for connecting accounting tools to CRMs is GoBD compliance. GoBD stands for "Principles for the proper keeping and storage of books, records and documents in electronic form and for data access". This is a guideline issued by the Federal Ministry of Finance that defines the requirements for proper bookkeeping and storage of electronic accounting data. The GoBD apply to all companies in Germany and stipulate that business transactions and bookkeeping must be properly documented. They define the principles for recording, processing, storage, security and access to electronic data and documents in relation to tax and legal obligations. CRM systems often do not meet these requirements, which makes the integration of a GoBD-compliant accounting tool unavoidable if compliance with the legal requirements is to be ensured.
What to look for when choosing an accounting software?
In addition to GoBD compliance and data security, you should above all ensure that the costs and benefits of the accounting software are in the right proportion and that the program is scalable and user-friendly. This is particularly important for small and medium-sized companies that do not have their own IT department. Datev, LexOffice and Sevdesk offer SME-friendly solutions. If you are unsure which accounting software meets your company's requirements, we will be happy to advise you. Simply book a free Date with one of our experts.
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