Benefits of Online Accounting Software for Small Businesses – by Dafydd Jones at Obp Accountants.
Obp Chartered Accountants uses the latest accountancy software to help our clients manage the burden of accountancy and tax compliance, maximise efficiency, leaving them with time to focus on what they do best, their business. A company’s financial information will be secure, but can be accessed from anywhere. Simply put, online accounting software is a great investment for any small business.
Here are some of the benefits I have discovered when using online accounting software with clients.
Online accounting software is user friendly. The software is built with non-accountants in mind and help guides are available every step of the way. Once it is set up, you can keep your accounts up to date with a few regular data entries and it is easy to use day to day. This means that you and your employees don’t have to worry about advanced accounting details – you can do what you need efficiently with a few clicks.
Save time with automation
Automated bank feeds allow you to keep track of your business’s balance sheet in real time. Effectively managing your cash flow can help your business save money. You can view reports that give an up-to-date snapshot of your business finances. Cloud accounting software also automatically generates invoices— as well as reminders — at regular intervals, meaning you don’t have to manually keep track of debtors. If you also combine your accounting software with HR and Payroll applications you can also automatically generate payslips and other HMRC documents.
Since online accounting software stores data online, some business owners might be worried about security. However, security is a top priority for online business software companies.
As your data is saved on a secure cloud server and is constantly backed up, you don’t need to worry about your data being hacked or compromised. Even if your computer crashes, everything is still saved in the cloud.
For all types of business computations, accuracy is essential. Mistakes made in calculations can possibly lead to significant losses or other issues. Online accounting software keeps you from making these mistakes.
Value for money
One of the greatest benefits of online accounting software is the cost savings. Instead of paying a huge one-off fee for accounting software, with the cloud, you can spread the cost by paying monthly — helping you to manage your business’s cash flow.
Work from anywhere with an internet connection
Cloud accounting software means you no longer need to worry about maintaining spreadsheets or installing a programme on one machine. The cloud allows you to login to your business’s account anywhere with an internet connection and from any device. Once you sign up, you can get started straight away.
Software is consistently updated and improved without you having to do anything.
Rather than having to wait for the latest update of a programme, cloud accounting software is constantly updated by in-house developers. This means that if things do change cloud software is agile enough to keep up-to-date in real time. In addition, unlike desktop accounting software programmes, these updates are free and included as part of your monthly subscription.
Collaborate easily with your accountant.
To me, this is the biggest benefit. In the past, it was common for business owners to chat to their accountant once a year at year-end— leading to one huge pile of work. Cloud accounting software lets you share your accounts with your accountant throughout the year and work together regularly. I enjoy this client interaction and feel that my clients benefit from having this continued contact with me and makes it easier us to work together to help the business discover new opportunities to improve revenue. Online accounting software makes it easier to get closer to your business and gives you a clearer picture of your finances as a whole.