Gone are the days when businesses used traditional methods for bookkeeping through office-based accounting firms.
In today’s fast paced and technologically advanced world, small businesses and startups should be looking to switch to online accounting software. Using cloud based software gives you upto date information on the health of your business in real time.
The modern trend is to use online accounting companies who offer different degrees of work depending on your requirements.
If the small company wishes to keep data entry then just an online assistant would be enough to oversee the entries.
On the other hand if the small company doesn`t want any data entry responsibilities , then via online software files / bills / invoices can be shared in an efficient way to accomplish the accountancy tasks.
For owner operators / small businesses the advantages are:
1. Cut the costs
The in house bookkeeper / payroll manager is no longer needed if you have an online assistant to guide you with all your paperwork. Online accounting companies cut the costs of hiring, training and providing an infrastructure for bookkeepers. Further savings like paid leave since online bookkeeping means work is done remotely.
There is also usually a better consistency in the service because it is being provided by a team of trained bookkeepers.
2. Less admin work involved for YOU.
Online accounting companies can offer full data entry services leaving more time for the owner operators. More time for the real work and advice available online in real time.
A lot of the time, business owners work themselves on various tasks of bookkeeping which takes up a prominent portion of their time. But with online bookkeeping, you can entrust your accounts to a reliable company that will effectively take care of everything while you focus on the various important operations of your business.
3. Aid with formalities
Other benefits include having up to date available in real time so PAYE bills / Vat Returns are not left to the last minute. The accounts receivable ledger can usually be invoiced directly via email and reminder invoices sent automatically. Mileage calculations are built into the software usually.
4. The softwares available to you
Any business can switch to online bookkeeping , existing data from desk based software can usually be exported by csv files into the new software. Some leading cloud based software include Intuit QuickBooks, Sage, Xero, FreeAgent. All the accountancy software fulfills HMRC requirement to be MTD (Making Tax Digital) compliant
Partner at DSK Associates
DSK Associates provides a full range of online accountancy services