What is a dematerialization?

, also known as Demat, is a dematerialization of a process that diverts from the use of physical documentation to maintain financial records. Instead, the dematerialization uses tools to maintain electronic records to monitor all types of financial transactions. The range of documents that can be effectively managed for software applications includes almost everything from basic accounting records to shares certificates.

One of the main advantages of this access to electronic accounting is that the need to physically store copies of balance sheet and other accounting documents no longer exist. Thanks to scanning technology, it is even possible to create electronic copies of support documents that provide links to line items in electronic accounting records. Everything can be easily accommodated on a hard disk or server. In order to protect against loss or corruption, backup files can be easily produced and stored outside the place.

along the basic accounting records allows Dematerialialalso to remove the need for physical certificates. Electronic copies of inventories can be archived for easy search. If a shareholder needs a copy of shares quickly, they can be approached and transmitted by electronic methods such as e -mail or protected FTP transmission.

Dematerialization also allows authorized individuals to work with the same documents at the same time. With physical accounting methods, it is often difficult for two people to work on books at once. When the accounting process is completely electronic, several people can perform different functions simultaneously. It is possible for the team to create new invoices, payments for past invoices and prepare a wide range of messages at the same time.

There is no doubt about the process of the dematorialization can benefit users in several ways. Record keeping requires much less space, can be easily accessed from remote locations and allows multiple users to access accountsI am at the same time. Currently, there are packages of accounting and financial records based on fees and free packages for purposes and financial records that can help every company or organization with ease to achieve a full state of dematration. In the case of accounting software, there are also online products that allow individuals or companies to create a set of virtual books. Authorized individuals are safely loaded on the product servers and have access and work with records from any location with active Internet connection.