So, you’re looking for the benefits of online accounting for small businesses? You’ve come to the right place. First, though, congratulations! As a small business owner, you’re one of the 125 million micro, small and midsize businesses currently operating worldwide.
You know what it’s like to graft, serve customers, and to see the fruits of your labour flourish just as much as the big guys. After all, size isn’t everything, right? The trouble is the limited size of your business can bring certain constraints.
Less capital and fewer resources mean that you’re unlikely to want to splash out on an accounting department just to keep your records in check. Now, you could dig out that dusty old calculator and do the work yourself, but if you don’t already have experience in accounting, it could be difficult to know where to start.
Don’t worry; this is where online accounting comes in. It is the perfect solution for small business owners just like yourself to take control. It can help you take care of all of your accounting and bookkeeping obligations, meaning you stay legal and know exactly where your small business stands. Online accounting for small businesses can be particularly beneficial in the following ways:
5 Benefits of Online Accounting For Small Businesses
Let’s face it; accounting can be hard work. There is a lot to get your head around. Unless you graduated with a master’s degree in bookkeeping, you would likely find it incredibly taxing (no pun intended). The great news is that most online accounting services are aware of this and offer extremely user-friendly dashboards.
They can be easy to set-up, manage and allow you to navigate your accounting responsibilities with minimal prior knowledge. Before you know it, you’ll be sorting out PAYE and purchase ledgers with ease! Should you run into difficulty, some online accounting services provide how-to videos and dedicated customer support for complete peace of mind. Put simply; you get all the benefits of employing an accounting expert for your small business at a fraction of the cost.
Security for any company is of utmost importance but even more so for your small business. Sure, a security breach would be disruptive to a large multinational corporation, but financially, they will likely be able to take a hit.
For you, however, it’s a completely different story. You have to watch every single penny and can’t afford any possibility of a cyberattack. Every device connected to your company’s computer network is an endpoint, one which immediately makes you susceptible to malware, viruses and data loss.
If you’re unlucky enough to be hit, vital information could be lost, misplaced or worse, destroyed. Also, by carrying out your accounting duties using traditional off-line methods such as Microsoft Excel, you are at risk of losing everything in the event of a fire, weather damage or physical theft.
By moving to an online accounting set up, you mitigate that risk and reassure your small business that whatever happens, you will always be able to access your records when you want, where you want.
Save time and money
We’ll repeat it; one of the biggest benefits of online accounting for small businesses is the ability to take advantage of huge savings in time and money.
Let’s face it, there are only 24 hours in the day, and unless you’re Elon Musk or Richard Branson, you’re unlikely to have a money tree growing in the garden. With online accounting for small businesses, you don’t have to pay someone for their time, you just pay a flat monthly subscription fee, and that’s it. The best thing is you only pay for what you need.
If you’re just starting out and have basic accounting needs, you just take out a basic package. Then, as your business grows, you can upgrade your monthly subscription so that you always have the right level of accounting support for you. Also, online accounting for small businesses can generate reminders and invoices and carry out automatic updates, increasing efficiency and time savings.
The “T” word
Eventually, we were going to have to mention it; you are a business after all. Tax. You’ve probably heard the phrase that “tax doesn’t have to be taxing” before; well, with online accounting for small businesses, it really doesn’t have to be!
Tax matters can be incredibly complex at the best of times, but if you don’t have your own dedicated team to guide you, it will be even more challenging. Online accounting for small businesses ensures all transactions are well organised and structured, making it much easier to gather all the data needed to complete those dreaded tax forms. It can reduce your chances of being audited since having online accounting software minimises human error risk.
Should you get a call from the taxman, you will have easy access to clear, well-structured financial records. You can also transfer your records electronically instead of using up valuable resources by collecting and delivering piles of paper documents by hand or post.
You’re always in the driving seat!
Finally, and our most favourite benefit of online accounting for small businesses is the fact that you are always firmly in the driving seat, right where you belong! Small businesses with manual records tend to wait until the end of the financial year to compile their records; it’s the old school homework on a Sunday night trick.
Whilst this frees up time during the year, it increases the chances of error and the surprises associated with doing things last minute. Online accounting for small businesses allows you to keep your records constantly updated throughout the trading year and makes it easy to spot and rectify potential problems before they happen. You can also take advantage of powerful analytics, which allows you to dig deep into specific financial areas, helping you to better inform business decisions.
With so many benefits of online accounting for small businesses, can you really afford not to make the switch?