How Accounting Software Makes Document Retention Easier
Aug 20, 2014 | By Chris Sluty
Storing your journal entries and account reconciliations in accordance to applicable accounting standards can be time-consuming. This is especially true if you have Excel spreadsheets spread-out over a networked filing system. Fortunately, there are several ways accounting software makes document retention easier.
Centralized Document Storage
When you use automated accounting software, your journal entries and account reconciliations are being stored in a centralized location. You do not have to search through your computer, networks or any other location to find your records. Instead, you can use the accounting software to quickly and easily retrieve your journal entries by searching the journal entry ID number. Similarly, you can search reconciliations by month and year. Having a centralized location for your documents makes retrieval a quick and painless process.
Fewer Paper Records
When you have accounting software and digital records, you can eliminate many of your redundant paper records. This frees up storage space that can be used for other things, such as additional room for administrative staff or other company operations. You do not have to keep paper reports on file, when you can easily generate them in accounting software. You also don’t have to waste time organizing or cleaning out your desk. The cost-savings and time-savings associated with fewer paper records make it advantageous to use accounting software.
If you have a number of paper records or digital records stashed throughout your office, then there is a higher probability that confidential information will get misappropriated. For this reason, it’s advantageous to keep the number of your accounting records minimal. Although you need to keep your backup handy for your journal entries and account reconciliations, having most of your records stored in your accounting software increases the security over your records.
Accounting software is beneficial in many ways, one of which is making document retention easier. With software, you have a centralized location to keep your documents allowing you to increase your control over them. You can also eliminate redundant paper records and reduce operating costs in the process.