Many small business owners prefer using paper systems to keep track of their finances. This can work well, but there's really no need to soldier on with paper and pen when there are so many excellent online accounting services for business owners to use.
Here are just five advantages that come along with making the switch.
1. Reduced Costs
As a small business owner, you'll want to make sure that your costs are kept low, and an online accounting service can help make that happen. You'll usually be charged a low monthly fee for the service itself, but having everything easily spread out online will help reduce overall costs since accountants will be able to access more easily. Instead of having them spend time going through your paper receipts, everything will be collected online.
2. Improved Convenience
Money isn't the only thing you'll save by using an online accounting service. Many link directly to your business bank account, so you'll often have payments recorded automatically instead of being forced to enter the information and perform calculations manually. Invoicing can also be tied to the online system, and several tasks can be automated.
3. Prevents Mistakes
One of the biggest risks that comes along with using a paper accounting system is finding that you've made a mistake in your calculations or entered a figure incorrectly. Such errors can be inconvenient at best, but you can also make fatal errors in cash flow projections and possibly report an incorrect income level when you do your taxes. Online services don't eliminate the risk of errors, but automated data entry and calculations make them far less likely to occur.
4. Easier Accountant Access
Even with online software on your side, you should still keep using an accountant. After all, they will be able to help put together your tax return, sort out your deductibles and offer general financial advice. With an online service, you can give them the password to your account and let them take care of business from afar. That means fewer trips to see them and the option to have accounting work carried out quickly.
5. Data Protection
Perhaps most importantly of all, using an online accounting service will ensure that your data is never lost. It used to be that paper accounting methods were safer; after all, computers can crash and hard drives can be easily lost. However, online services sync your data to the cloud, so a backup will always exist.
Share11 January 2017
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