Currently, especially after the COVID-19 pandemic, more than 85% of global companies are in the process of digitization. Technology is changing the way documents are digitized. In fact, more than 65% fear that not digitizing their business processes will cause them to lose their competitive advantage, which will affect their company's profits. For this reason, many organizations are working to accelerate their digitization plans.
Throughout this article, we will discuss the limitations of document digitization as the sole measure for the digital transformation of a company.
What is the traditional view of document digitization?
Document digitization is the process of converting a large number of paper documents into digital files, records that can be stored in a document management system.
The most notable advantages of document digitization are as follows:
- One of the most important and obvious advantages of digitization is the savings in storage space for organizations. In addition, environmental awareness is growing, and as a result, many companies want to stop printing so much unnecessary paper and, in turn, save on printing costs (ink, paper, photocopies, etc.).
- Likewise, digitizing documents provides greater security in maintaining information, since, if properly safeguarded, document loss is prevented. What used to be kept under lock and key can now be protected with different passwords and restrictions depending on the user. This reduces the risk of information loss or theft.
- Furthermore, with the advent of "teleworking" in a growing number of companies, employees can consult information without being present in the office and need to access information from mobile or portable devices without having access to physical documentation.
Information stored in paper formats is degradable and deteriorates further with each manual use. Digitizing documents ensures that a company's most important databases are saved and preserved for the future.
Is document digitization sufficient?
Although document digitization is undoubtedly the first step toward digitization and digital transformation of the company , it will not be enough if we stop there.
Once all the "papers" have been digitized, it will be time to automate the rest of the processes. In other words, digitizing documents is not enough if it is not accompanied by solutions that allow automate the processing and handling of these documents. Therefore, the documents will first be digitized and then these digitized documents will be managed in a specific way by automating the processes of document management and handling . Both processes result in a more efficient and competitive company, with employees dedicated to tasks that directly benefit the business.
Digitization of documents in the field of electronic invoicing
Since document digitization is the first step in the digitization process, invoice digitization plays a decisive role in accounting and finance. Regardless of the size of the company, from the smallest to the largest, the volume of invoices received and issued is high, and it is very easy to make mistakes if management is done in the traditional way. Therefore, invoice digitization is crucial in the process of transforming the company. In general terms, invoice digitization is a process by which the data from your paper invoices is transferred to an electronic environment.
Digitization of invoices
This invoice digitization process is more complex than it seems:
- Specialized tools are needed, such as an OCR (optical character recognition) scanner. With it, you can transform scanned paper images, PDF files, or photos into editable text. This will allow us to create a text document that we can edit or incorporate into another document we are working on.
- The Tax Agency sets out technical requirements that all electronic invoices must meet, such as: the use of software and a format approved by the Spanish Tax Agency (AEAT), a digital signature on the document, and a minimum resolution of 200 pixels.
At easyap, we are certified by the Tax Agency for the certified digitization of invoices. As a result, the obligation to keep physical files is eliminated. This allows us to bring our clients closer to total digitization and a paperless office.
Advantages of digitizing invoices
The advantages of electronic invoicing or digitizing invoices are numerous, including:
- Increased employee productivity
- Cost reduction, converting fixed costs into variable costs
- Improved accessibility and reduction in lost invoices
- Agility and process automation
All of this will help companies optimize their results and gain that much-coveted competitive advantage over other competitors.
The company intends to leave traditional procedures behind and is determined to optimize its processes as a path toward becoming a digital enterprise , needs to start by digitizing documents, specifically invoices. In the coming years, paper invoices will no longer be an option for accounting and finance departments, and electronic invoices will be the only reality.
In conclusion, we can see that having optimal document management reduces costs, increases cash flow, and improves customer service. All of a company's processes can benefit from the incorporation of an invoice workflow, which allows them to be carried out more quickly and efficiently. If you need information about our solutions and services, please fill out the following form and we will contact you to assist you.
