According to analytics conducted by Statista, there are nearly 700 million internet users in the country today. Despite these numbers and India’s technological revolution, most small businesses still follow the traditional route and keep their accounts on paper. The result is a time-consuming process that is prone to errors which could lead to substantial losses.
However, the effectiveness of digitized accounting software is slowly being recognized by retail merchants, MSMEs and entrepreneurs in the country. In fact, new age bookkeeping apps are seeing a surge in their daily usage indicating an increasing comfort with digital accounting solutions.
|The accounting software market is expected to grow at a CAGR of 8.5 % during the forecast period 2019 – 2024. |
So, Why Should Your Small Business Move To Digital Accounting?
- It’s A Streamlined Process:
One of the biggest advantages that digitized account keeping brings to the table is the ease with which your business’s information can be accessed. While recording information and managing books may not be a challenge for manual bookkeeping, gathering information, or creating reports with specific data can be a time-consuming process.
In addition to this, digitized accounting can also help small business owners access data in real-time. With just a few clicks of the app, critical information like cash flow and balance sheets can be easily pulled up and used as per a business’s requirements.
- It’s Cost-Effective:
The rising popularity of digitized accounting services can be attributed to many factors but one of the most popular is the minimized service cost. Unlike traditional accounting where you may need to hire a professional to manage daily accounts, a digital accounting service may only charge for the cost of installation. This can be a strong incentive for many SMEs, especially if the business operates on a tight budget.
- It’s Reliable & Scalable:
Imagine a situation where a small human mistake in accounting ends up costing you your business! Digital accounting software removes this possibility by being devoid of errors. This is what makes it one of the most reliable forms of book-keeping available to businesses.
Additionally, the simplicity of digital accounting also makes it a favorite among a number of entrepreneurs wishing to grow their business. Unlike manual systems that would require a complete reshuffle, digital accounting systems only require a simple upgrade to adjust its database to the growing needs of your company.
- There’s Increased Data Security:
Manual filing systems are always a liability as there is always a risk of system failure, accidents, or someone robbing documents. The fact that so many years of data could go away in a flash, is one of the main reasons why it is so important to shift to a paperless system.
With digital accounting, financial data and transactions are always backed up and secured safely in a server. Obtaining information in a cloud system will enable you to retrieve data even when things go wrong.
- It’s Easy To Use And Improves Productivity
Digital accounting greatly simplifies the accounting process with its readily available data. It may take an individual more than an hour to create a cash flow and gather the required information for their accounts manually. However, with a digital format, businesses have the comfort to run all kinds of simulations and tests on their financial data and are able to create their cash flow in minutes. This, in turn, allows them to focus more staff and time on essential aspects of company to boost productivity.
Digitization is bringing significant changes in the way businesses keep their accounts & records, regardless of their size and the economic area in which they work. It helps improve everyday operations and overall efficiency. That’s why adopting a digital accounting system can help ensure that your business remains successful and productive in the future.