Within the next few years’ online computing services for businesses will be the norm. The Internet will be the source of a real alternative of providing IT services to numerous customers. Currently Internet IT services are moving and developing at a fast pace, but there is one area that is becoming extremely popular and that is online accounting. Online accounting software was initially developed in line with greater opportunities from web-based technologies and the introduction of broadband. Inspired programmers that understand the Internet in terms of accessibility for small businesses have developed accounting software.
As the software is web based online accounting can in fact reduce overall costs as it reduces the need for in house IT requirements – that in real terms means reduced capital costs for more traditional desktop hardware and software for accounting solutions. Importantly, for small businesses, online accounting software actually offers a cost effective method of accounting.
Online accounting services are termed such, as they are exactly that – a service. For the small business there is no need to actually buy anything – online accounting is usually via a monthly subscription to access the online accounting service, making the software a reasonable and relatively cheap solution to business accounting. Utilising accounting software online also reduces the need to spend on training employees. Unlike more traditional desktop applications that involve lots of expensive training, web-based accounting software training is also online and usually available through payment of the monthly subscription.
Online accounting offers accessibility, flexibility and in most cases an easy to use accounting solution, together with extremely stringent security for company data. Security that is far more sophisticated than more traditional IT security solutions, such as back up data discs and network servers. The pivotal benefit however for doing accounts online is the elimination of extortionate outsourcing of IT expertise when something goes wrong with the company server and data is lost – in some instances for ever. The security of online accounting and the rigorous processes of backing up company data totally eliminate the problems of lost accounting data. A major factor in the failure of some small businesses has been the loss of accounting information.
Online accounting software is the perfect solution for small to medium businesses as it is affordable, flexible and an easy to use application. It is ideal for the modern business allowing access 24/7 from any location. An increasing number of accountants are looking towards online accounting and this creates another benefit for small businesses. An accountant can be anywhere in the world and with secure login processes can keep up to date with the company accounts too.
The whole underpinning notion of the programmers and designers of online accounting software is to offer small businesses choice and opportunities to succeed, by providing an online accounting service that is affordable to smaller companies but is in fact far more beneficial than more traditional accounting solutions.
Hi Paddy, thanks for the great post. Certainly lots of businesses are starting to explore how they can better use the internet to make business life easier. Based on our research, the real value for many businesses looking at online accounting solutions – is bringing their banking and accounting processes together. It's a key feature of our MYOB LiveAccounts solution (www.liveaccounts.co.nz)
In 2011, the MYOB will be releasing our Hybrid "cloud" accounting solution, which will let our clients leverage the power of the desktop and the cloud, where they can move seamlessly from desktop processing to online accounting based on their immediate needs and work preferences. This means our clients will be able to leverage the benefits of being online, without being constrained by any of existing limitations of the internet… availability, speed, responsiveness.
Exciting times.
Warm regards
Julian Smith (julian.smith@myob.com)
General Manager – NZ
Julian, I'd like to hear more about MYOB. Online accounting is definitely getting to be the most common option and it's very exciting to see how it can help business owners do more with less.
As a next step in this trend, I'm really interested in software that goes further and helps small business owners actually interpret their accounting data. I work with a company called Profitably that's doing just that, and it's incredibly fascinating to see the opportunities this presents. It would be great to see this kind of software as a future blog post. It all comes down to helping small business owners level the playing field.
Paddy, thanks again for focusing on such a relevant topic.