Part 2: The way to your digital accounting? Start and process your digital administration at the right time.
More and more entrepreneurs realize it: those piles of paper that their people have to plow through every day are outdated. Especially in the field of accounting, the digital options allow you to work much more efficiently, with more quality and more structured. In part 1 of this blog series, we explained how setting up a digital administration is already a big step in the right direction. Today, in part 2, we help you in choosing the right time for that.
This is part 2 of a four-part blog series about digitizing your accounting. Part 1 "Your digital accounting starts with a digital administration" can be found here. Soon we will also publish our free e-guide "Digitizing your administration". Would you like to be notified when it appears? Please leave your details at the bottom of this page. We'll keep you informed!
Can't wait to digitize your administration after our previous blog? A great plan, but don't rush it either. Because even if you can prepare a lot, it is best to choose very carefully the moment when you actually start. And also organizing your administration afterward will save you a lot of time and money ...
Starting at the beginning of a new quarter or - better yet - of a new fiscal year is ideal: all your quarterly or fiscal documents are digitized from the start and are immediately on the right server. That way you save time and you don't risk certain data being transferred carelessly or not at all. And yes, that requires some advanced planning and perseverance on the spot. After all, your tax return is a busy and rarely pleasant period.
The importance of a fixed administration moment
Doing administration is no fun, especially if you add it on top of your normal work "because someone's gotta do it". In that case, any excuse is good to put it off. That is precisely why you must choose a fixed weekly moment to take care of this task. This can be at any given time, as long as the possibility of something intervening is as small as possible. For example, we never plan administrative moments on Monday morning - sorry, but then we do not feel like it - and Friday afternoon, when we are already with our thoughts at our end-of-the-week drink. But who knows, for example, Monday morning may be ideal for you: with all the paperwork behind you, things are looking up for the rest of the week.
Once you have chosen that moment, pour it into your agenda and, if necessary, that of the entire company. That keeps you motivated and your colleagues know that they should not disturb you. And hanging a "WEEKLY ADMINISTRATION TIME: DO NOT DISTURB!" - sign on your door may seem a bit exaggerated, but if it helps…
There must be order!
It is good that you now have a fixed administrative moment, but the shorter and more pleasant, the better of course. Your task becomes less wicked if you don't have to start in chaos. Do not pile all of your incoming administration that you collect during the week on that one administration stack, but try to create a certain order, for example by adding everything immediately to the correct stack or folder. At that time, it will not cost you an extra second but will save you minutes when processing your documents.
Do it digitally
Given the topic of this blog series, it will not surprise you that we emphasize it again: do everything digitally. Use software that simplifies invoice processing and offers you an automatic financial overview. BilltoBox is an example of that type of software and will save you a lot of work.
Furthermore, you are also free of what we call the paper storage obligation: the FOD Finance requires you to store accounting documents (receipts, invoices received & sent, bank statements and other proof of income and expenditure, contracts, payroll, ...) for seven years. That period starts after the taxable period to which the documents refer. Certainly, for companies with a lot of paperwork, this not only leads to a huge pile but also increases the risk that documents may not be found when requested. You could be faced with serious fines. Documents in the cloud, on the other hand, do not take up any space and normally cannot go lost.
With a digitized administration and a nicely streamlined internal process, you have already taken a big step. If you use that to work smarter with your accountant, then that step becomes a big leap. You can read how to do that next week on blog 3 of our series. Soon we will also publish our free e-guide "Digitizing your administration". Would you like to be notified when it appears? Please leave your details at the bottom of this page. We'll keep you informed!