Gone are the days of being tethered to a desk when you need to review your business’ accounting or raise an invoice.
Online accounting has removed the need for you to forensically manage every detail of your business’ accounts and bookkeeping, as it allows for information to be shared and updated in real time.
In the past, bookkeeping software was always seen as a ‘desktop product’, loaded onto a disc or downloaded onto your computer. With the move to online accounting however, you pay to use the accounting software via an online provider and information is stored ‘in the cloud’ and accessed over the internet.
But being more convenient and cost effective are not the only benefits that cloud-based accounting software, such as QuickBooks Online, can provide businesses.
By taking the time and effort to keep your day-to-day books updated, online accounting allows you real-time information on your business. This allows you to make better-informed decisions and meet your reporting requirements – such as tax returns – quickly and even while you’re on the move.
Cloud-based accounting allows for invoices to be produced and emailed straight to the customer who, with a simple click, can be taken to their payment options instantly. This is environmentally-friendly, professional, reliable and – most importantly – should result in more prompt payments by your customers.
Using desktop software relies on you storing your data on the hard drive of your computer and remembering to back up your work regularly. However, using online accounting software means you can leave it to the provider to make frequent backups of all of your data. In addition, you can back up to your own computer if you prefer to have your data held locally as another layer of security.
Advantages of online accounting
You don’t have to wait while your software downloads any updates, as this is done in the background without you even knowing.
Probably one of the biggest advantages of online accounting is that it helps to reduce the need for any unnecessary meetings, as it allows for greater ‘virtual’ collaboration on real-time data with your accountant and colleagues simultaneously.
In addition, storing your data in the cloud may be more secure than using some encrypted hard drives as all online accounting software should adhere to the requirements of ISO 27001 – the International Standard for Data Security.
There will also be additional security measures in place such as firewalls and multi-site servers, so that if the main data centre should go down, your software will be back in action within minutes.
Obviously, to ensure you enjoy all the benefits of online accounting, you will need a reliable internet connection so ask the provider what the minimum internet speed required is in order to have a seamless experience using the software.
Your local TaxAssist Accountant will give you peace of mind that your affairs will be handled accurately and in a timely fashion, which leaves you to concentrate on your business. Contact us today to find out more about our accounting and bookkeeping solutions tailored to your business on 0800 0523 555, or visit our website.
For more information, please contact Jo Nockels on 01603 447 420 or email her.
Jo Nockels FCCA FMAAT is the Senior Training and Communications Managers for TaxAssist Accountants and has been a practising accountant.