In the Baltics, public institutions have been embracing paperless systems for decades. For example, 99% of Estonia’s administrative services have been digitalized.
However, as the drawbacks of traditional paper-based systems are becoming increasingly clear, many small businesses are also recognizing the benefits of going paperless.
But what does going paperless mean?
In this comprehensive guide, we’ll explore the essential aspects of going paperless for small businesses, examine various digital solutions, and explain how Finbite’s paperless invoice software can transform your invoicing processes.
In this article
What is a paperless business?
A paperless business is a business that has digitalized its business operations to eliminate or drastically reduce its reliance on paper documents. Going paperless involves a fundamental shift in data management practices, workflows, and customer interactions. Paperless business systems digitalize everything from invoicing and accounting to communication and customer service.
However, going paperless is not only about using digital documents. Even digital documents like PDF invoices can be inefficient. Therefore, going paperless also means adapting efficient paperless processes. For example, using machine-readable invoices to seamlessly exchange and approve expenses.
The drawbacks of paper-based systems
Paper-based systems present many challenges for small businesses, some of the most common being:
- Inefficiency: Paper-based systems are inefficient in many ways. It takes an average of 10 minutes to retrieve, copy, and file a paper document. Manual data entry is prone to error. Collecting paper receipts and physically submitting them to accounting can also be tedious and time-consuming for employees.
- Cost: Paper, printing equipment, and physical storage are expensive. Paper-based processes are also time-consuming, which translates to higher labor costs.
- Risk of loss/damage: Paper documents can be easily lost or damaged, which can cause issues when paying suppliers or filing taxes.
- Storage: Physical storage (eg filing cabinets) takes up space in the office. Organizing paper documents and retrieving them later on is time-consuming.
- Environmental concerns: Paper-based systems are also harmful to the environment. For example, in Sweden, 60,000 trees are harvested annually to produce paper receipts.
- Security: Paper records have a higher risk of being compromised. Paper invoices are also more prone to fraud, compared to e-invoices.
Advantages of going paperless
Efficiency
One of the main advantages of going paperless for businesses is increased efficiency. Replacing paper-based (or PDF) documents with machine-readable documents means employees no longer spend time printing, filing, and retrieving paper documents. Instead, the whole process can be done digitally.
Digital tools can automatically detect and retrieve information from machine-readable documents, eliminating manual data entry. With Finbite, employees can easily store and retrieve invoices through a digital archive. Finbite also integrates with other programs, allowing for smooth data exchange between systems.
Cost savings
Paperless systems for small businesses can significantly reduce costs. First, the cost of paper alone can add up to a significant amount for businesses. One study estimates that the average office worker in a paper-based business uses around 10,000 sheets of paper per year.
Switching to small business paperless office solutions can save significant labor costs. For example, by using machine-readable invoices, employees no longer need to search through email inboxes for PDF invoices or manually give paper invoices to accounting for approval. Instead, employees can exchange and approve invoices through an efficient automated workflow.
Going paperless can also save costs during tax time or audits. With paper-based processes, auditors must come to your office and sort through paper documents. However, with platforms like Finbite, businesses can give auditors access to their digital archive for a clear overview of all their invoices.
Security
Digital storage solutions offer enhanced security features like encryption and access controls to protect sensitive financial data. Storing documents digitally also prevents loss or damage.
Digital solutions like Peppol e-invoicing also improve security. Peppol is a secure network that allows businesses to exchange electronic, machine-readable documents across borders. The Peppol network uses encryption protocols and certified access points like Finbite to maintain a high level of security.
Environment
Producing paper requires a significant amount of resources and the waste generated by paper documents is substantial. Therefore, simply by switching from paper invoicing to e-invoicing, businesses can significantly reduce their carbon footprint.
According to one study, replacing one million paper invoices with electronic invoices can save 18.9 tonnes of CO2. That’s the equivalent of saving over 9,000 liters of gasoline when operating a petrol car.
Digital solutions for businesses going paperless
Digital Archives
Digital archives are essential for businesses that want to go paperless. By relying on machine-readable documents instead of paper or PDF documents, digital archiving eliminates the need to manually file, organize, and retrieve documents. This saves both time and money for businesses. Digital archives also include features like audit trails and secure access controls, which help maintain the integrity and confidentiality of financial records.
With Finbite’s digital archive, employees can easily access digital documents, even when working out of the office. All archived documents are duplicated and safely stored in the Finbite database, ensuring no documents are lost and freeing up valuable office.
Document scanning technology
Optical character recognition (OCR) is a widely used technology that converts an image of text into a machine-readable text format. This document scanning technology makes it easy to transition from paper documents or PDF documents to machine-readable documents.
For example, Finbite’s receipt scanning app uses OCR technology to automatically recognize and extract data contained in paper receipts. Employees can simply take a picture of their paper receipts, and the app converts them into a digital format. Digitized receipts are then verified by a digitizer to confirm accuracy. Once receipts have been digitized, there’s no longer any need to store the paper receipts.
Paperless expense approval
With Finbite’s digital confirmation circle, employees can submit machine-readable expense reports to accounting instantly. The accounting department can then easily view the expense report and confirm it with just a click of a button. No more sorting through countless emails to find PDF invoices.
This paperless invoice approval system simplifies expense approval. It allows employees to submit expense reports when out of the office and eliminates back-and-forth communication with accounting to get approval.
E-invoicing
With Finbite’s e-invoicing solutions, businesses can create, send, and receive e-invoices in any format. E-invoices are machine-readable invoices that are instantly recognized by the recipient’s accounting system, eliminating the need for manual data entry.
Finbite also offers Peppol e-invoicing for easier cross-border transactions. Peppol e-invoices meet the legal and tax requirements of over 60 countries, making it an ideal solution for international transactions. Peppol also uses advanced security protocols and ID requirements to prevent fraudulent invoicing, which is a common issue with paper invoices.
E-signature solutions
E-signature solutions allow businesses to sign digital, legally binding documents. In the EU, all e-signatures must meet eIDAS requirements to be legally recognized. Some popular e-signature solutions in the Baltics include:
- DocuSign: DocuSign is a widely used e-signature solution that offers document tracking, multi-party signing, and integration with popular business apps. DocuSign is compliant with eIDAS and other international e-signature regulations.
- Dokobit: Dokobit is a Lithuanian e-signature solution that offers both mobile and web-based signing. Dokobit is widely used in the Baltics and is eIDAS compliant.
These solutions streamline the document signing processes, enhance security, and ensure compliance with legal requirements.
Electronic forms
Electronic forms are designed to simplify the collection, storage, and sharing of data. By using electronic forms, businesses can streamline data collection, reduce errors, and automate workflows. Some of the most popular digital solutions for electronic forms include:
- Typeform: Typeform is a popular online form builder that offers a user-friendly interface for creating engaging and visually appealing forms and surveys. The platform also allows businesses to create dynamic forms that adapt to the respondent’s answers.
- JotForm: JotForm is another widely used online form builder that offers a range of features for creating and managing electronic forms. With JotForm, businesses can create forms for various purposes, including surveys, order forms, and job applications.
These platforms for creating electronic forms can save time, reduce costs, and improve data accuracy for businesses.
Examples of businesses going paperless in the Baltics
Here are a few examples of paperless companies in the Baltics that have successfully gone paperless:
- Telia: Telia, a leading telecommunications company in the Baltics, has implemented paperless billing and contract management. Telia has reduced its reliance on paper invoicing, as customers can now receive them through digital methods. Telia also allows customers to renew contracts digitally, further minimizing paper usage.
- Omniva: Omniva, a postal and logistics company operating in Estonia, Latvia, and Lithuania, has implemented many paperless solutions. This includes paperless customs declarations, which streamline the declaration process and eliminate paper waste. Omniva also uses Finbite to send and receive e-invoices, digitize PDF invoices, and confirm invoices through a paperless invoice approval system.
FAQ: Paperless business solutions
What is paperless billing?
Paperless billing is invoicing that relies on efficient digital processes and machine-readable documents. A paperless invoice system uses a combination of digital solutions to streamline everything from invoice creation and expense reporting to invoice approval and storage. Paperless billing is an efficient and environmentally friendly billing solution.
What is the best paperless invoice software?
There is a range of small business paperless office software to choose from. However, Finbite is the best paperless invoice software. With Finbite, users can digitize paper and PDF invoices into machine-readable documents, set up automated invoice approval workflows, and store invoices in a digital archive.
Why are companies going paperless?
Many businesses are going paperless to improve organization, enhance security, and gain easy access to stored documents. Paperless processes that utilize machine-readable documents can improve efficiency, reduce costs, and protect the environment. In the Baltics, many businesses are also going paperless because of government initiatives towards digitalization.
Is there any free software for paperless invoicing?
Yes, Finbite offers a free Starter plan that allows users to send and receive up to 5 free e-invoices per month (incl Peppol e-invoices). This can help businesses get started with paperless invoicing. However, for a complete paperless invoicing process that includes digital archiving and digital confirmation workflows, users must upgrade to a paid plan.
Transition to paperless invoicing with Finbite
Are outdated workflows holding your business back? Get started with Finbite to see the benefits of paperless business processes. Finbite’s paperless invoice processing solutions can save time, reduce invoicing errors, and protect your business from invoicing fraud.
Book a demo today to start invoicing with Finbite.
