The Benefits of Online Accounting    by Sally Nightingale

in Finance / Accounting    (submitted 2010-02-17)

Bookkeeping for small businesses can be difficult to maintain and manage amongst the many other priorities that come with running your own business. It is often seen as a tedious task although it must be done regularly in order to monitor the performance of your business.
Managing accounts such as year-end accounts, tax, VAT and bookkeeping can be a daunting task and a time consuming job. However, advances in technology and the Internet now means bookkeeping and accounting has become incredibly easier to organise due to the growing number of online accounting firms. Online accounting not only means that you can access your accounts online at the touch of a button, it also comes at a reasonably low price. If you are looking to minimise overheads and concentrate on your core business, then online accounting could be the perfect solution for you or your company.
Accountants take responsibility for handling business books and organising financial statements on your behalf. Bookkeeping is one of the primary services that an accountant will offer. The cost of appointing an accountant can vary depending on the type of service that is required; however you can greatly reduce this cost with the use of online accounting services.
Easy to Manage:
Online accounting is a perfectly simple and easy to use web-based service. It is paper free and you can organise your finances much more effectively. The main goal is to provide accurate and up to date accounting to enable your business to run as smoothly as possible. Files that are saved on your computer can be uploaded to an accounting system by email and other paper documents can be scanned and emailed. Online accounting services will process and organise your business accounts in such a way, that you can access your accounts 24 hours a day, 7 days a week. So if you have a query at any time - all you have to do is log in, using your own computer.
To set up your own online accounting service, all you need is an internet connection and a computer; you don't have to worry about system updates. What's more, you can contact a dedicated financial account manager at any time, via email, telephone, or even using a live chat support facility.
Low Cost:
The good news is that online accounting comes at a lower cost than the traditional high-street service. All you need is access to a computer and the Internet. Managing your accounts online means that you can minimise the cost of an accountant, which can help enormously with lowering the financial outgoing for a small business.
Up to date Information:
As traditional set of business accountants is created and based on historical information it's hard to know how your business is performing until the end of the tax year. Online accounting enables you to monitor how well your business is performing at any time of year, rather than waiting until the end of the financial year.
If you sign up to online accounting you will have your own secured personal homepage. Many companies create monthly reports of your financial accounts where you can view on your homepage. This will have information about estimated tax bills, year to date turnover and profit as well as a business net worth figure and tax advice.
Security of computers and the Internet is so advanced these days that you don't have to worry about the safety of your financial information. Don't forget you will also have support from highly skilled accountants who will manage your accounts professionally and securely.
Online accounting means that you don't have to get swamped down with paperwork. There is no need to purchase or learn to use expensive accounting software. Simple to use and easy to understand, online accounting is the way forward for managing finances for today's small businesses.