What is digital accounting?
Digital accounting stands for structured, clear processes, roles, rules and protocols. In addition to pure digitalisation, it is also about automated workflows, transparent processes and legally compliant archiving. The aim is to create a smooth, error-free and traceable accounting process.
Elements of digital accounting
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- Digital recording of incoming invoices (e-mail, EDI, e-invoice)
- Automatic synchronisation of invoice, order and goods receipt
- Rule-based testing and web-based approval
- Seamless ERP integration
- Centralised, digital archive with process logs
- Real-time transparency on status, deadlines and histories
Advantages: Why digitise accounting?
Digital accounting offers clear added value:
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- Faster processing thanks to automated workflows
- Higher data quality through valid comparisons
- Audit-proof archiving and transparent processes
- Better utilisation of discounts thanks to shorter throughput times
- Relief through reduction of manual routines
- Improved traceability and compliance
- Centralised control and monitoring of workflows
Checklist: The start of digital accounting
- Digitised invoice receipt (e.g. e-invoice, EDI)
- Automatic synchronisation with orders and goods receipt set up
- Rule-based invoice verification defined
- Release processes clearly regulated and web-based usable
- ERP system connected for seamless booking
- Central, digital archive available (GoBD-compliant)
- Employees trained in handling new digital workflows
- Data protection and IT security audited
- Automated monitoring of discount periods and payment runs
- Project managers and contact persons appointed internally
Legal requirements to digital accounting
Digital accounting must not only be efficient, but also legally compliant. In Germany, the principles for the proper keeping and storage of books, records and documents in electronic form and for data access apply in particular. In short: GoBD.
GoBD: What needs to be considered?
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- Receipts must be stored in an unalterable, traceable and complete manner.
- The entire process (e.g. checking and archiving) must be documented and verifiable.
- Access for tax audits must be possible at all times.
- Archiving must be system-supported. Including logging of all processing steps.
The GDPR also applies to all personal data. Especially if invoices contain employee, customer or supplier data. SGH ensures full GDPR compliance in all digital accounting processes.
Digital accounting in comparison:
Manual processing vs. automation
| Range | High proportion of manual labour | Rule-based automation |
|---|---|---|
| Recording | Manual data entry | Automatic extraction / validation |
| Test rules | Head decision, inconsistent | Standardised rules & exceptions |
| Follow-up questions | Frequent, unclear status | Reduced through synchronisation & transparency |
| Lead time | Fluctuates strongly | Stable thanks to defined workflows |
| Cash discount utilisation | Often by chance | Deadlines / status visible with system support |
| Reporting | Subsequent, incomplete | Clean database for analyses |
Rule-based automation reduces manual effort, stabilises throughput times and improves data quality and traceability. This makes your digital accounting more efficient to manage and noticeably reduces the workload for your employees.
Next steps towards digital accounting
Get in touch with us!
Whether you are just starting out in the direction of paperless accounting or already want to establish an end-to-end digital workflow: SGH is with you every step of the way. We offer scalable, tried-and-tested solutions - from analysing processes to going live.
Frequently asked questions about digital accounting
What does digital accounting mean?
An end-to-end, digitally supported process: receipts are digitally recorded, automatically checked, electronically released, systematically booked and archived in an audit-proof manner.
Is digital accounting mandatory?
Whether digital accounting is mandatory depends on company size, industry and regulatory requirements. Although there is no general legal obligation (yet), digital accounting is becoming the standard in practice. Not least due to GoBD requirements and efficiency pressure.
Are EDI and e-invoicing supported?
Yes, EDI and e-invoicing are central components of digital accounting and enable processes without media discontinuity. SGH supports both formats, including automatic synchronisation and integration into your existing systems.