Combining tradition and innovation

Entrepreneurs in the skilled trades usually place great value on the traditions of their profession. At the same time, they naturally utilize the latest technologies and solutions to assert themselves in the market, such as 3D scanners that replace the folding rule.

This article is part of the special feature GründerNavi – for founders and young companies

Why not apply this proven approach to the commercial sector as well? Just like their predecessors, they could work with a tax advisor and simultaneously rely on fully digital processes from the outset: The only document that would remain on paper would then be the master craftsman's certificate.

Avoid media breaks

Digital solutions are already part of everyday life in many craft businesses . More than 80 percent of them rely on digital solutions for communication and internal business processes. This is the result of the third study on digitalization in the skilled trades, for which the IT service provider DATEV eG surveyed 1.000 tradespeople from all sectors by telephone . Nevertheless, many still work with printouts and archive documents both in paper form and digitally. Stefan Wunram, Chief Consultant at DATEV eG , explains this by saying that "the skilled trades are in a transition phase, moving away from isolated digital solutions and the media breaks that are usually associated with paper, towards fully digital business processes."

This trend is likely to accelerate further due to the coronavirus crisis. Founders are therefore well advised to rely on fully digital processes from the outset . A tax advisor can assist them in this endeavor, as they are not only familiar with tax law and business matters, but also with the principles of proper accounting that must be observed when setting up digital processes.

Save time with e-invoicing

To move closer to the goal of a digital office , it's crucial that founders avoid paper documents or, if they do arrive in the mail, scan them immediately and process incoming digital documents digitally. Companies that also send their invoices electronically not only save time and money but also meet the requirements of important business partners. This is particularly important for companies that work with public sector clients. In Germany, the public sector is gradually switching to the so-called XRechnung, an electronic invoice in a prescribed data format . In addition, there are many other formats for incoming and outgoing invoices. Data interpreters like DATEV Smart-Transfer help navigate this format jungle. They ensure that incoming invoices are read, validated, and prepared for further processing. They also provide outgoing invoices in the preferred format of the respective business partner.

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End-to-end digital processes also help to avoid pitfalls right from the start-up phase . Close communication between the business and the tax advisor is crucial. One application that facilitates this is DATEV Unternehmen online. This solution supports businesses with bookkeeping and payroll. Data can be entered into the secure DATEV cloud from the office or home office and thus exchanged promptly between the business and the tax advisor. A major advantage is that the tax advisor always remains up-to-date on the company's business transactions. This allows them, among other things, to identify early on if the company's current business development deviates from the plan and to suggest appropriate measures or provide ad hoc support in the event of external crises, such as the COVID-19 pandemic. This allows the founder to fully dedicate themselves to building their own business.

Checklist 2020

What good commercial software for craft businesses must do!

• Flexibility: It adapts flexibly to the needs of a growing company and can also be accessed at home and on the go.
• Reliability: It is audited, reliable, and complies with the German Accounting Principles for the Digital Age (GoBD). All current legal changes have been taken into account.
• Cooperation: It enables end-to-end digital processes – even with tax advisors. Paper documents are no longer necessary.
• Privacy Policy: Data protection and security meet the highest possible standards, even in the cloud. Audit-proof archiving is guaranteed.
• Control: Business data and analyses show current trends, for example, in costs and revenue. Negative trends can be identified promptly, allowing early intervention.
• Freedom: If desired, the tax advisor will take care of the commercial aspects, leaving the craftsman/craftswoman to concentrate on the core business.

CONCLUSIONStumbling Stones: Founders circumvent these through digital commercial processes together with the tax advisor.
Cloud: Send and receive invoices digitally and securely – simply with DATEV SmartTransfer in the cloud – whether from a beach café or your home office. 
Instead of paper war: Fulfill more customer wishes – consistently digital processes in the office make it possible and create freedom. 
Corona: The crisis is accelerating the trend towards fully digital processes within companies and between them and their partners.