The oldest accounting records can be traced back to Mesopotamia, around 3200 BC. Recovered clay tablets from that time period showed that people kept track of when they traded livestock, produce, and other goods, and records exist that showed the imposition of taxes for civil services. While new accounting standards are released frequently today, double-entry bookkeeping has been around since Luca Pacioli created it in 1494.
But we don’t need to go that far back to show how accounting relates to economic growth.
Why Do We Need Accounting?
If you’re an accounting professional, you might chuckle at this question. After all, inquiring about the necessity of accounting in the business world is like a farmer asking why we need rain. Without accounting, businesses wouldn’t grow and flourish, because accounting is the backbone of the business financial world.
Accounting records are necessary to enable companies to make sound business decisions. Without these records, it would be extremely difficult for a company to purchase products or negotiate business contracts.
New Study Links Accounting to Economic and Business Growth
The International Federation of Accountants (IFAC) established a link between the importance of accounting to regional and global economies. The study “Nexus 2: The Accounting Profession—A Global Value-Add” from November 2015 presents 3 key findings:
- Economic development and improved living standards are linked to a robust accounting profession. There is a strong link between a robust profession and better life expectancy, more years of schooling, and higher income.
- The economic contribution of the global accountancy ecology is $575 billion. IFAC members contribute $248 billion.
- The biggest contributions come from Europe and North America. IFAC is actively engaged in building capacity and developing the profession in other regions that present an opportunity to contribute more to the global economy.
It turns out that there is a reason businesses spend so much time and effort on keeping up with their financial records. It’s good business sense. And on a larger scale, accounting fosters economic growth in local and global regions.
Why Accounting Requires Document Management Software
Moving from clay tablets in Mesopotamia to modern accounting is a giant leap. But using electronic software for accounting purposes is not enough. Efficient accounting also requires an electronic document management software (DMS). Why is it so important to go paperless?
Going Paperless Increases Productivity
Whether you’re entering, evaluating, calculating, or summarizing accounting records, it’s often necessary to look up appropriate documentation. If you’re still using filing cabinets, then looking for the right paperwork can be tedious and time consuming. Electronic DMS allows you instant access to everything you need to get work done.
Having your documents accessible anywhere allows your employees to work remotely. With eFileCabinet, they can view records from their laptop, tablet, or phone as long as they have internet access.
Your DMS Integrates with Your Accounting Software
To make life easier for you, DMS integrates with your accounting software. It allows you to save your records inside of your accounting program, which means you do not have to import and export files from one program to the other, or toggle back and forth the between the two. This is much easier than having to index and file physical records after recording new transactions.
Sign Off on Documents Electronically
One of the biggest challenges for accounting firms is to institute a paperless relationship with their clients. With eFileCabinet’s DMS solution you can share specific files with clients and use the audit trail to ensure that documents are authentic and recorded appropriately in your system.
DMS Offers You a Backup for Your Backup
A big challenge for accounting professionals is to keep files secure. Not only do you have to keep financial records secure from unauthorized access, but you also have to keep them safe from physical harm. With electronic document management, you can enjoy peace of mind knowing that there is a backup for your backup to ensure you never lose a file. Your documents are also securely encrypted and only authorized users can view your files.
eFileCabinet Is the Top Choice for Accounting Professionals
At eFileCabinet, we pride ourselves on providing the best DMS solution to accounting professionals. Instead of digging through filing cabinets or pulling information from spreadsheets, emails, and your tax software, we help you store and manage your company’s financial records in a central, secure place. We even make it easy for you to share files with your clients. And if you’re ever looking for anything, whether it’s an old invoice, a tax return, or a statement, our full-text search function retrieves it quickly.
But document management software is more than just a way to store your records. Our workflows, user-based access, and audit trails provide a complete solution to document management. Give eFileCabinet a try today and see how we can transform your office. Simply fill out the form on this page and start your 15-minute demo.