Online Accounting: Why Your Small Business May Want to Switch to It

Posted on July 16, 2015 in Accounting

Every new business, no matter its field and scope, sooner or later discovers that keeping track of finances is one of the most important tasks it requires to succeed or stay afloat. Without efficient bookkeeping, payroll and tracking of expenses, establishing a benchmark for excellence and defining steps to financial success is impossible. Accounting services are essential for small businesses and large corporations alike.

Certainly, not getting an accountant right away is most common for startups – small technology- or software-oriented companies often founded by young people with little to no experience in running a company. When every expense deemed excessive is done away with, it is very easy to dismiss the need for an extra person who would crunch the numbers in an efficient way. A founder, especially in the beginning, takes on a role of a marketer, manager, and accountant. It works to a point, but once the company starts accumulating contracts and bank accounts, issuing invoices and receiving payments, the financial situation quickly becomes too complex to be handled in a haphazard fashion. A need for a qualified and trained accountant rises, but the money is still limited. Maybe the company cannot even afford hiring a new member of staff just for that. What’s one to do?

Naturally, finding a solution is easiest on the internet. Subscribing to an online accounting service is what many companies are turning to in the 21st century. The growing number of accounting software firms now offers comprehensive service packages that can be used by any type of organization to keep track of their accounting and bookkeeping needs. All one requires is an internet connection! The benefits of subscribing to an online accounting service are numerous. They include not only convenience, zero time wasted on meetings, but also lower fees and no added strain on company’s payroll. Online accounting is a service that can be discontinued at any time.

Online accounting software may serve businesses in different ways. They range from complete support, in which a powerful program allows for doing the bookkeeping, compiling of financial statements, keeping track of spending and earnings. Online accounting software can also cater to seasonal needs, such as filing corporate taxes, which often are a pain for companies of all sizes, not only small businesses. Online accounting software typically uses cloud-based platforms that allow easy transfer of documents and around the clock secure access to them for all decision-makers and employees.

The biggest benefit of an online accounting software subscription is the cost. It eliminates the need to spend time (and money) on hiring a local professional, thus lowering human resources cost. No time is a wasted screening resume, choosing candidates for interviews, doing interviews, checking references. Hiring anyone is a lengthy and costly process, and an online accounting software can do a lot without requiring a qualified full-time employee to do it.

Online accounting services cost much less than having a chartered accountant sitting in the office doing taxes. Why? Because these services exist only online and in cloud. There is no travel time for a real person, there is no need for extra office space, and there are no meetings. Savings are typically passed on to the customer in the form of lower fees. And these savings are significant! Online accounting subscriptions are never charged by hour. The fees are either fixed or monthly depending on the type of accounting package chosen by the business who is using the software. Switching to an online accounting model is a smart step for every modern small business out there.

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