Online bookkeeping is slowly taking over traditional bookkeeping. There are several reasons why – BriteBooks is here to explain them.
The digital age is truly upon us, and accountancy and bookkeeping aren’t left behind. New technologies are helping the industry move towards a paperless format. There are several benefits to online or virtual bookkeeping. Read more to discover how making the change from paper to online can benefit you and your business.
Online VS Traditional Bookkeeping
Online bookkeeping is specialised software that helps you remotely organise your books and tax records. The accounting software has a maximum level of automation, plus lots of helpful tips and advice.
Online bookkeeping functions the same way as any other software on your computer. The main difference from paper bookkeeping is that you have greater control over your company’s finances, performed online.
Having all this information in one place and easily accessible is beneficial for SMEs, especially new businesses, who can’t afford to maintain a full-time accountant. The software aims to help business owners solve their financial issues without needing an expert. It also allows larger businesses to streamline their finances.
Online bookkeeping software makes keeping records, making payments, writing and submitting reports easy. It is entirely online, so redirecting it to the appropriate parties only takes the push of a button.
Virtual bookkeeping is not just software. Real humans can be involved in the virtual bookkeeping process. This service is where an accountant or accounting company (such as TS Partners) provides remote bookkeeping services for your business. This way, you have the assistance of the experts at hand without employing a full-time accountant, making this approach very cost-effective. It also makes data transfer much more straightforward, giving your business room to grow.
The Main Benefits of Online Bookkeeping
Online bookkeeping is not something you should be avoiding. There are plenty of advantages to using the latest accounting software to help your business grow. Here is a list of the main benefits of online bookkeeping:
- Cost-Effective: Collaborating with accountant’s online means less travel and more effective use of your time. Furthermore, fixed monthly fees make it easier to keep on top of your expenditures.
- Flexibility: Most online bookkeeping services offer flexible packages which you can adjust as your business needs change. You may also add bolt-ons and only pay for what you need. This flexibility allows your accounts to develop alongside your business.
- Productivity: The world today is primarily online, especially since COVID-19. So, managing your books and communicating with your accountants online means you can work in a way that suits you and your day, making each day more productive.
- Better and Faster Advice: Because you and your online accountant can look at the same document simultaneously, regardless of where you are, you can get better advice exactly when you need it. You are saving time and money compared to the traditional bookkeeping method.
- Improved Planning: Having access to your accounts 24/7 means you can better plan the future of your business. You can look at last years finances with a click of a button and use the data to forecast where you want to grow and develop in the future.
- Reduce Administration: Using online accounting software to reduce time on everyday tasks, such as invoicing, payments, and doing them from anywhere with internet access, means reduced time and money on business administration.
- Paperless Records: There is no longer a need for a room full of dusty paper records that you need to organise when doing your annual taxes. Reduce clutter, gain more control, and stay compliant with excellent record-keeping.
- Easier Bookkeeping: Use online accounting apps to take photos of receipts with your smart phone and have them instantly added to your records. Bookkeeping takes time and money, but online services can reduce both factors.
- Manage Debts and Credit: Many small businesses spend hours working out who has paid and who owes them money. Self-employed businesses spend hours chasing invoices, which leaves them with no time to thank those who pay on time. Make all this a problem of the past with online accounting.
- Better Decision Making: Having more information readily available and easily accessible means making better business decisions.
- Customer Support: All online bookkeeping apps and software offer excellent customer support, so if something goes wrong, you don’t have to worry about losing all your accounts. All you need to access your accounts is an internet connection and your log in details.
- Security: Bookkeeping software comes with ban-grade security and encryption as standard, guaranteeing the safety of your data. The security software used by online bookkeeping services makes your data less susceptible to viruses and hacking.
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