Invoices, invoices, invoices. They’re a necessary part of running a business. But how do you manage all those paper stacks efficiently and securely? The answer is simple: go digital! In this article, we’ll discuss the benefits of digital invoice storage and how to implement it effectively.
Why Store Invoices Digitally?
While the environmental impact of paper invoice storage is often highlighted, the financial implications are frequently overlooked. Renting or purchasing filing cabinets, storage rooms, or off-site storage facilities incurs significant costs that increase with the volume of invoices.
Additionally, employees spend valuable time filing, retrieving, and managing paper invoices—time that could be allocated to more productive tasks. There are also overhead expenses such as electricity for lighting and climate control, insurance for fire and theft, and maintenance of storage areas that contribute to the overall cost.
Furthermore, paper invoices are vulnerable to damage from water, fire, or accidental disposal, and replacing lost documents can be both time-consuming and costly. By considering these financial factors, businesses can better understand the true cost of maintaining paper invoice systems.
How to Store Invoices Digitally
There are several options for digital invoice storage:
1. Invoice Storage Software
Specialized invoice storage software solutions are designed to manage digital documents, including invoices. These solutions often come with features such as Optical Character Recognition (OCR), allowing automatic data entry by converting scanned documents into editable and searchable text.
This can significantly reduce manual data entry efforts and improve accuracy. Many invoice storage software options also offer integration with accounting systems, automating workflows and improving financial management.
Features like audit trails, version control, and advanced search capabilities can also help businesses manage and retrieve invoices efficiently, enhancing productivity and reducing operational costs.
2. Cloud Storage
Cloud storage provides a robust solution for digital invoice storage, addressing concerns such as data loss due to system crashes or hardware failures. With cloud storage, your invoices are stored on remote servers managed by service providers, which ensures regular backups and high availability.
This means you always have access to the most recent versions of your documents without needing to perform backups manually. Popular cloud-based storage services like Google Drive, Dropbox, and Microsoft OneDrive offer scalable storage options and allow access to invoices from any internet-connected device.
These platforms provide additional security features such as encryption and multi-factor authentication to protect sensitive financial information from unauthorized access. Furthermore, cloud storage facilitates collaboration, enabling multiple users to simultaneously access and work on the same document from different locations.
3. Scan and Save
The scan and store method converts paper invoices into a digital format by scanning them and storing the electronic copies on a computer or server. This straightforward approach is ideal for companies switching from paper to digital storage. The quality of the scans is critical to the readability and accuracy of the data, which is why it is important to use a reliable scanner.
Once scanned, digital files can be organized and categorized into folders for easy retrieval. While this method is simple, it requires a systematic approach to naming and organizing the files to ensure efficient management and quick access to the invoices. Organizations may also consider using PDF software to annotate, bookmark or tag scanned documents to improve searchability.
The Benefits of Digital Invoice Storage
Switching to digital invoices offers numerous advantages:
- Time-saving: No more hunting through piles of paper. Find any invoice in seconds with a digital system.
- Space-saving: Eliminate those overflowing filing cabinets. Digital invoices take up zero physical space.
- Security: Digital invoices are protected from fire, water damage, and theft.
- Eco-friendly: Reduce your paper consumption and help the environment.
- Efficiency: Quickly search, share, and analyze your invoices.
Storing invoices digitally brings several benefits:
- The digital invoices are available 24/7 in the online archive. So when you want to check an invoice, you don’t have to wait until you are back in the office.
- All invoices are kept in the cloud for at least 10 years. During these years, the invoices also remain available for possible audits, so you always comply with regulations.
- You can export invoices in common formats such as XLSX, UBL, PDF, and CSV.
- Archiving invoices digitally provides insight into the costs incurred per project, person, period, department, and cost center.
Steps to a Seamless Transition to Digital Invoice Storage
Transitioning to digital invoice storage might seem daunting, but with a well-planned approach, it can be smooth and efficient. Follow these steps:
- Assess Your Current System: Evaluate your current invoice management process. Identify pain points and areas where digital storage can improve efficiency.
- Choose the Right Solution: Research different digital invoice storage options. Consider factors like cost, features, security, and scalability.
- Digitize Existing Invoices: Scan paper invoices and organize them digitally. Use OCR technology to extract data and streamline the process.
- Implement Workflow: Establish a clear workflow for receiving, processing, and storing digital invoices. Assign responsibilities and set deadlines.
- Train Your Team: Provide comprehensive training to employees on using the new digital system. Ensure everyone understands the benefits and how to use the system effectively.
- Secure Your Data: Implement robust security measures to protect sensitive invoice information. Consider encryption, access controls, and regular backups.
- Regular Review and Optimization: Continuously monitor your digital invoice storage system. Identify areas for improvement and make adjustments as needed.
Additional Tips for Effective Digital Invoice Storage
- Organize your files: Use a clear naming system for your files, such as “Invoice_supplier_date.pdf”.
- Create backups: Always keep a backup of your digital invoices on an external hard drive or in the cloud.
- Comply with tax regulations: Adhere to legal retention periods for your invoices.
Getting digital with Klippa’s Automated Invoice Management
Digital invoice storage is not just convenient, it’s essential for modern businesses. By making the switch, you’ll save time, space, and money while improving the security and accessibility of your financial records.
If you want to build a system yourself that incorporates the points mentioned above, you will probably spend a lot of (development) time and money on it. It is more convenient to invest in a system that has all these points already integrated: Klippa’s invoice processing for example!
Storing and organizing invoices digitally is very easy with Klippa. We link our system to your company’s current ERP or accounting system so that the invoices automatically end up in the digital archive.
Do you want more information about storing invoices digitally? Get in touch, or schedule a free demo using the form below.
FAQ
Digital storage can save space, reduce the risk of loss or damage, and facilitate easy searching and sharing.
Scanning invoices can help streamline the accounts payable and receivable processes, improve accuracy, and reduce the need for physical storage.
Invoice management software can automate the invoice scanning process, extract data from invoices, and store them digitally.
Businesses can use a filing system, tagging system, or dedicated invoice management software to organize their digital invoices.
Businesses should implement strong security measures, such as access controls, encryption, and regular backups, to protect their digital invoices.