Every business needs needs a way to track expenses, log customer transactions and pay taxes. Without these processes in place, it is very difficult to move forward in a competitive marketplace. Accounting can be frustrating for small business owners because most didn’t start their companies because they loved crunching numbers over a spreadsheet.
“It is really important to get this right,” says Mike Budiac, president of Find Accounting Software. “In a lot of cases, it can make the difference between businesses that are profitable versus not profitable.”
You Have to Get the Accounting Right
Small business owners have too much at stake to let haphazard accounting practices slow them down. From payroll to taxes, even the smallest businesses have to keep track of their money. Many operate on such small margins that even little changes could be the difference between closing shop or expanding.
The depth of business accounting needs can be surprising and intimidating, especially for new small business owners who are still finding their bearings. Owners need to be able to source and communicate with their business bank accounts, track operating expenses, set up payroll (if they have employees), and figure out tax obligations. They also must develop day-to-day bookkeeping operations and calculate margins to track their businesses’ performance.
Businesses with physical locations, inventories and point-of-sale transactions have an additional litany of accounting needs. The same goes for businesses that offer services or sell products to international customers.
As important as accounting is, most small businesses don’t need a fleet of professional accountants or expensive, large-scale software programs. Instead, your small business is only likely to need a suite of simple, double-entry accounting applications and maybe a few other time-saving features.
That is where cloud-based accounting services come in. Cloud accounting relies on software-stored information and anywhere-you-go-online availability, and the best modern vendors also upgrade regularly and backup data for their clients.
Think of cloud accounting as analogous to internet banking. Each time you interact with your bank account via computer or phone, you are utilizing the cloud. This is because you are using a platform in which software and data are accessible virtually everywhere you travel through an internet connection.
Accessibility is a key factor in deciding which accounting software is best for your company.
Consider these alternatives to cloud accounting software:
- Saving accounting documents to the traditional hard drive on your computer. This is less appealing because it lacks the ease of access that the cloud offers as it requires you to access those documents from that specific device.
- Physical bookkeeping in which calculations and ledger work are done tediously by hand on paper. While, this offers ease of access, it is more difficult to keep track of and make updates to.
Get Back to Focusing on What You Love
The right online accounting can help take the financial stress of business operation off of small business owners. It can also save a great deal of time, which means you can get back to focusing on what you love and do what’s best for your company. Find the online accounting services that provide the tools you need to keep your small business on track.