Online Bookkeeping Services use the ‘cloud’ based accounting applications, such as Xero. With these applications, all data is safely stored on a secure server and is as such accessible online by permitted users at any time from any location. These types of applications allow small business owners and their staff to record all of their financial, labour and stock activities online, rather than relying on the traditional applications located on their and their accountant’s PCs.
Traditionally, a software licence for a PC based accounting application is purchased for each party in the process – business owner, bookkeeper and accountant. Any transfer of information is usually done on a physical drive, making it difficult to have up to date information that all parties can share anytime and anywhere. With online (‘cloud’) based accounting applications business owner pays a monthly subscription for the accounting suite, allowing any party working on their books to enter and view information online. Traditional PC based applications are usually installed and updated using an external disk, which can create version control issues for the parties using the system. Online applications are basically websites that are updated seamlessly and with the modern security and data backup arrangements they make it much safer way to store the information than using own PC and portable storage devices.
Benefits of Online Bookkeeping
Online Bookkeeping Services open a number of efficiency improvements and cost saving opportunities for small business owner.
- There are definitive accounting cost savings, especially if the bookkeeping services are performed accurately. Your accountant will have to spend much less time with current and accurate books during any tax reporting periods. In addition, online solutions can provide financial, payroll and process control all in one cheaper package.
- Bookkeeping services do not have to be done in the place of business. Books can be completed anywhere and anytime. In addition, the administrative work can be outsourced to the bookkeeping services professionals, allowing the owners time to focus on core aspects of their business.
- Data can be always current, making it easy to establish the financial control for the business. If the books are done regularly, the small business owner can view the financial situation daily and make more qualified decisions.
Basic cost savings aside, the online bookkeeping services provide exceptional opportunities for small business owners to offload their administrative work to the professionals make the best use of current financial information and dedicate their valuable time to the growth of their business and better work-life balance.