Keywords: online accounting software; online accounting software
If it ain’t broke, don’t fix it; right? Don’t reinvent the wheel. Leave well enough alone. All of this is probably good advice in some contexts (like invasive cosmetic surgery, perhaps). However, they are also clear proof that we, as a race, are resistant to change. For example: We did also worry that mobile phones would cause brain tumours when they came along. And when we had to change the way we wrote our dates from 19 to 20 (way back when we went from 1999 to 2000) there was plenty of talk about the world coming to an end.
The things we do to resist change!
However, sometimes changes are necessary in order to reach the next level. Much like a mountaineer changes to more heavy-duty gear as he leaves the foothills behind and approaches harsher weather and steeper inclines, modern businesses must embrace modern technology not just to access greater profitability, but to keep pace with the changing environment.
Switching from traditional accounting to cloud-based online accounting software is one such non-negotiable change for businesses small and large, nascent and well-established.
Businesses are more concerned with data security today than they have been at any point in history. That’s because today, data science is a real thing and tremendous profitability has been accessed when companies are able to better manage and derive insights from their data. Additionally, there’s a growing market for stolen sensitive data and a growing band of very capable, but unscrupulous, hackers.
On-premise accounting systems tend to be sitting ducks for data breaches. Cloud based accounting software secures your data with firewall protection. Moreover, by virtue of sharing space (on the cloud) and security measures with the biggest brands in the world, you’ll get their level of security. Your software solutions provider also has a reputation to maintain.
Ease of access
Because online accounting software saves your data to the cloud, you will no longer be restricted by geography. Company bosses and decision-makers have ready access to the company’s key financial data anywhere in the world and via partner mobile apps even on the go.
Meanwhile bookkeepers can ask for clarification on specific line data and the relevant team member can view and respond remotely.
Data entry is automated thanks to receipt scanning, which extracts data from receipts, bills, invoices and even data-packed PDFs of bank statements. The extracted data is delivered as a data entry (or digital text).
One can alternatively link ones business bank account to the business’ accounting books for continuous and automatic flow of data. This means that the access we talked about above will be to the most live, most up to date version of your books.
Automation of data entry eliminates the element of human error. In addition, cloud-based online accounting software will draw your accountant or bookkeeper’s attention to any errors or discrepancies in the data. Duplicate purging – a time-consuming chore – is automated but a record is maintained of any deletions made and they can be retrieved during a buffer period.
Data entries made using the receipt scanning tool can be edited in case of errors during extraction and a copy of the source document is retained in case verification is required.
Data-driven business insights
Artificial intelligence loves to show off. Your online accounting software will regularly and spontaneously offer you business insights from all the data that you’re allowing it to chew. You’ll get insights linked to supply chain leaks, cash flow, accounts receivable and payable and so on – you can also customise the dashboard where these insights show up so that you get the most relevant ones.
When presenting business progress to existing investors or potential investors, fancy-looking reports with on-trend formatting and visual elements certainly make you look more professional. It also helps you to align focus to areas/statistics that you are proud of.
This need is even more pronounced when you intend to go public and when millions of potential shareholders – many of which do not have a finance background – want to check your historical financial data. Help them see that you are worth it with graphs, pie charts and other visual representations.
Lower up-front investment
Even when you opt for one of the most popular online invoicing software options like Dext, you’re only paying about GBP 20 to GBP 40 per month to get your online accounting software up and running.
Online accounting software is also able to use historical data and assist you with forecasting. It can note that the last time your inventory hit this level amidst these conditions you ended up with a supply excess (or shortage), for example.
A very useful forecasting feature is linked to taxation. Online accounting software can tell you how upcoming taxes will affect your profitability.
Don’t believe us right off the bat? Opt for a free trial and see for yourself.