Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
Are you tired of balancing your checkbook the old-fashioned way? Are you looking for a way to simplify your accounting tasks and be less time-consuming? If so, you may want to consider using online accounting software. This software can provide several benefits over both manual and computer-based accounting methods.
If you are still using the traditional methods for your business, maybe this year is the time to upgrade. Keep reading to learn more about the risks of using manual and computer-based accounting and how online accounting software for small business can be an excellent replacement for the two systems.
Manual and Computer-Based Storage
Manual and computer-based storage have played their part in ensuring that your business financial transactions are all recorded. However, with the advent of technology and the desire of stakeholders like bookkeepers, accountants, and business owners to optimize their operations, online accounting software (small business) was born. Unfortunately, although these traditional accounting methods have their fair share of benefits like the comfort of using something familiar, they have more frailties like the ones below.
- Pain to the environment: The paper used for manual accounting may seem small at first, but it will accumulate throughout the years. And the amount of it altogether with other small and large businesses using manual accounting is a pain to the environment.
- Prone to data theft: Having your data stored in a computer with computer passwords only for protection makes data theft more probable.
- Inability to generate reports automatically: Generating real-time reports is done after hours of updating and preparing books.
- Waste of resources: As you bear with the manual work and your computer, you waste not only material resources but also time, energy, and money which you could have invested in other essential business activities.
- Immobility: Access to your business financial data is limited as it can only be accessed using the computer your bookkeeper and accountant are using.
- Difficult collaboration: With the limited access, collaboration in accessing and updating the file for team collaboration or even data viewing is difficult.
Online Accounting Software: An Excellent Replacement
While continuing to do what you are comfortable with and leveling up to using the best online accounting software takes adjustment and new training, all the pains will be worth it! Today's different accounting software addresses the downsides of manual and computer-based accounting.
Although each available accounting tool has its specific feature differences, almost all offer the following characteristics that make them a better choice than physical accounting books or excel sheets.
State of the Art Security
The first but one of the most powerful accounting features of online and cloud-based accounting software is the promise of data security. Data storage software like Quickbooks, Xero, Freshbooks, Zoho, or Wave goes through security testing to ensure that it is fortified against hackers, data theft, or information corruption—the biggest fears of business owners. Security is even made better as only key people who have the password to the data in the cloud have access.
Champion for Automation
Small businesses need to have access to their financial data. It is advised that the financial reports come more often for small businesses to ensure that they can be addressed immediately if there are challenges. The generation of quick and real-time reports is possible for online accounting tools. Because everything is automated, the data is immediately stored in the cloud and reported in just a few clicks.
Can Be Accessed Anywhere, Anytime
Today, hybrid work setup, in-house, remote, or a mix of both teams, is more normal than ever. Online accounting tools ensure that your team has access to the data in the cloud no matter where they are as long as they have the password. In addition, the access is not limited to specific computers. You can access data as long as a member has the application on their computers or even cellphones.
Beneficial for Team Collaboration
With your team having access to the data anywhere and anytime, they can update or change data in the cloud, and their teammates and you can see it in real-time. Gone are the days when the main small business owner should send the file to their teammates to keep them updated. As a result, team collaboration, especially between bookkeepers and accountants, is easier.
The papers used for the books that came from natural resources can now be minimized with the paperless transactions offered by online accounting tools. Papers are susceptible to damage, and they can depreciate in time, unlike the data stored in the cloud. This feature is environment and budget-friendly. Your company can save a lot by cutting out the need to buy paper again and again.
Get Assistance From Unloop!
A small business accounting software is a great option for businesses that need to store and manage data. With the right accounting solution, you can automate your business processes and make better decisions about what areas of your company are performing well or not so well—all from one place.
If you're still using manual methods or relying on computer-based storage solutions, it's time to switch over to online accounting software. The software provides state-of-the-art security and is accessible anywhere, anytime, with no disruptions in service. This will benefit your team members by making collaboration easier and helps save money through automation while being eco-friendly too! If you need assistance on switching from traditional accounting methods to online ones, we at Unloop, can give you a hand. We are well-versed in using the best accounting software tools like Quickbooks Online, Xero, Hubdoc, and more, and our bookkeeping and accounting team can handle everything for you. If you are interested in our services or want to know us more, give us a call at 877-421-7270. We'd be happy to discuss our offers with you.