Having an accurate accounts book is essential for any business, as every company needs to know its financial status. In big businesses, accounts handling is often outsourced, or they employ someone specifically to keep their accounts up to date. For small business, it is equally as important that accounts are regularly maintained, as it is crucial to know where you can maximise and what is losing you most money. Small business accounting however can be time consuming, especially when you lack detailed knowledge of the numerous book-keeping programmes that currently exist.
This has led to a growth of online accountancy for sole traders, a system that simplifies small business accounting and makes it easy for them to control and understand. Having your accounts online allows you full control and access of the accounts 24 hours a day, seven days a week. Because it is based on the internet, it is accessible from any computer, which is useful for small businesses that find themselves travelling widely or visiting far-flung clients but have no-one else to whom they can assign the book-keeping. Due to the sensitive nature of the information, online accounting is normally encrypted, which ensures that the financial data is recorded securely and cannot be accessed by those without the log in details.
Small business accounting further benefits from online book-keeping because figures are recorded in real time, which allows them to instantly calculate profit and loss. It is easy to create forecasts from this information and most systems also generate quarterly reports so businesses can track their progression. The benefits for small business of online accounting is that it is an organised system that requires minimum effort on behalf of the company; everything is clearly laid out and businesses can assess accounts without having to make further calculations or tackle complex spreadsheets.
For those who don’t have the time or money to employ a dedicated staff member to the accounts, the online system is perfect as it requires no technical knowledge to use. It allows you to quickly and easily assess the state of your business, where you are making profit and where you need to make cuts.