Virtual Bookkeeping-Aye or Nay

More and more businesses are moving away from traditional desktop accounting systems and with its exceptional efficiency plus convenient accessibility, virtual/cloud-based systems are becoming the preferred accounting method for businesses the world over. But the process of transitioning can cause financial problems and issues if not done properly.

Issues like timing and the importance of ensuring you get this right for a smooth transition are some of the issues and failing to get the timing right can be costly for your business. Poor timing can also delay the process of transition over many months. To avoid any such headaches, the two main recommendations are:

- bookkeeper must align it with your Financial Year End – aside from the effect on the new year, this will make things a lot easier for your accountant too

-keep your financial reporting periods in mind – if the period is too far away consider aligning it with the end of your accounting period, it means that your reports are contained within one accounting program and you won’t have to use desktop and virtual systems to complete your financial reports.

Differences between online accounting software and desktop accounting software are:

  • Log in from anywhere, anytime, from any device with an Internet connection. This also means no Internet, no login.

  • Having multiple users work on (and mess up) the same data at the same time from various locations. Data sharing is much easier.

  • Don’t have to deal with different users having different versions of the system, or different file versions.

  • Cost savings. Avoid the costs associated with expensive business accounting software and paying full time accounting staff

  • Simplified, because the software is stored and managed in the cloud, IT tasks (fixes, upgrades, data back-up) are managed by the vendor

  • Use Add-ons to build as business tool and as you start to get more familiar with the system and your needs evolve, you might want to consider incorporating add-ons. These third party tools are designed to boost your cloud software

Keeping accurate books is a huge part of being a successful business owner. If you are looking for ways to be more efficient and bring greater financial insight to your business, making the switch to online accounting can be a real time saver and streamline many day-to-day financial management tasks.If you’re not in the 21st century, get there.

Are you making the switch or have you done so already?


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