The Benefits Of Going Paperless: How Digital Receipts And Electronic Record-Keeping Can Streamline Your Business
By transitioning to digital receipts and electronic record-keeping, businesses can streamline their operations by reducing paper waste, minimizing errors in data entry, and improving organization. This shift allows for easier access to important information, enhances security measures, and ultimately saves time and resources for the company.
Real-Time Access To Financial Information: The Convenience Of Digital Receipts For Monitoring Business Performance
Reduced Errors And Improved Efficiency: How Electronic Record-Keeping Can Benefit Your Business
Electronic record-keeping can significantly reduce errors and improve efficiency for your business. By eliminating manual data entry, the chances of human error are minimized. This leads to more accurate records and streamlined processes. With digital receipts, you can easily track transactions and access important information when needed, saving time and resources.
Simplified Tax Preparation: The Advantages Of Using Digital Receipts For Financial Reporting
Simplified tax preparation is one of the key advantages of using digital receipts for financial reporting in your business. By digitizing your receipts and records, you can easily organize and track expenses, making it much simpler to prepare and file taxes at the end of the year.
Integration With Accounting Software: How Digital Receipts Can Streamline Financial Reporting Processes
Digital receipts can seamlessly integrate with accounting software, automating the process of categorizing expenses and updating financial records. This eliminates the need for manual data entry, reducing errors and saving time for your business. By streamlining financial reporting processes, digital receipts can provide real-time insights into your company’s financial health.
Enhancing Customer Experience: How Digital Receipts Can Improve Communication And Transparency With Clients
By implementing digital receipts, businesses can enhance the overall customer experience by improving communication and transparency with clients. Digital receipts provide customers with instant access to their purchase history and details, allowing for better record-keeping and easier communication in case of returns or exchanges. This increased transparency builds trust and loyalty.
Enhanced Security Measures: How Electronic Record-Keeping Can Safeguard Your Business Data
Enhanced security measures are a key benefit of digital receipts and electronic record-keeping for businesses. By using encryption and password protection, sensitive data can be safeguarded from unauthorized access. Additionally, digital records can be backed up in secure cloud storage to prevent loss of important information due to physical damage or theft.
Compliance With Regulatory Requirements: How Electronic Record-Keeping Can Ensure Legal Compliance For Your Business
Electronic record-keeping can help businesses comply with regulatory requirements by ensuring accurate and organized documentation of transactions. This can include tax records, financial statements, and other important documents that may need to be submitted to government agencies. By using digital receipts and electronic record-keeping, businesses can easily access and provide necessary information when required.
Customization And Personalization: Using Digital Receipts To Tailor Customer Communications And Marketing Strategies
By utilizing digital receipts, businesses can easily customize and personalize their customer communications and marketing strategies. This allows for targeted messaging based on specific purchase behaviors, preferences, and demographics. By tailoring these communications, businesses can enhance customer relationships, increase engagement, and drive repeat business.
Real Business Stories: Bookkeeping Case Study
To illustrate the types of challenges we help businesses overcome, consider a real-world bookkeeping story from a local construction company.
When we began working with them, their bookkeeping was seriously behind. However, with our help, they were able to get back on track and achieve the kind of results that you, too, can expect when you partner with Pro Vision Bookkeeping to manage your business’s books.
The Problem Discovered
Pro Vision Bookkeeping once came across a growing company called Reliable Construction (not its real name).
However, the owner had entrusted bookkeeping responsibilities to a receptionist who had only received minimal training in bookkeeping.
As a result, the receptionist could not maintain accurate records of the business transactions, leading to incomplete and outdated bookkeeping or, in simpler terms, a disaster.
The owner was primarily focused on production and was always present at the job site. He had no knowledge of bookkeeping and could not even open Quickbooks. On the surface, everything looked good. He was content with the cash coming into the bank and assumed that his business was doing well.
This, in turn, caused significant issues that we need to address regarding Reliable Construction:
- No HST has been filed for almost two years.
- The previous corporation income tax returns have not been filed.
- Not filling out HST and Income tax returns resulted in about $60,000 in penalties and interest.
- The owner used personal credit cards for business purposes.
- Some expenses from personal credit cards for business purposes were accounted for as a total balance per type of expense without vendor names per each transaction instead of posting each transaction as per the source document separately. It made it impossible to see each transaction individually and actual costs per vendor.
- Most of the receipts from personal credit cards for business purposes were not provided for accounting purposes. The owner withdrew the amount he spent for business purposes from the business account and assumed it would somehow create expenses for business purchases.
- The funds withdrawn from the business bank account were accounted for as a shareholder’s loan. No business expenses were recorded since no receipts for business purchases were provided. Thus, the resulting withdrawn funds must be returned to the company, or it will create an income for the owner he does not have. Income was overstated for the company since no business expenses were recorded for receipts that had not been accounted for.
- HST amount was not calculated for receipts not accounted for. The amount withdrawn was about $80,000 without providing receipts to expense.
- Accounts receivables had numerous unpaid and significantly aged invoices. Some were duplicates, and others were no longer relevant. Those invoices overstated income, as well as HST and income tax due.
- Vendors had many duplicated bills and payments that applied to incorrect bills. As a result, some unpaid bills were actually paid, but payments were applied to different bills. The vendors’ open balance showed unpaid bills, but Reliable Construction’s records showed they paid.
- The undeposited funds account had some old unclear transactions, which can be a sign of duplicated income in a company.
- Company bank and credit card accounts have not been reconciled.
- In Reliable Construction, we found another significant issue with customers’ billing. The company installed various items to bill at the end of the month to their customers, but records of many of them were simply lost and not reported for billing.
Many other services needed to be reported for billing but ended up unreported. Revenue was produced but simply lost on the way to billing. Some billing paperwork was simply lost in piles of various documents or not delivered by operators to a project manager.
The solution
Our main goal was to clean up and catch up on bookkeeping records to bring the books up-to-date.
We checked through each transaction in each trial balance account for almost two years. Soon, we realized that we needed to re-enter all transactions.