One of the most daunting aspects of running a business of any size is the need for meticulous bookkeeping. Anyone who has ever cowered in fear of having to solve a math problem at the board in front of the class is likely more than a little anxious about taking on bookkeeping for their business. After all, there’s a lot riding on that record keeping, including wooing future investors and proving your figures when the IRS comes knocking.
The Benefits of Online Bookkeeping
- It Saves Time: Once employees understand the program, it’s quick and easy to log receipts and other paperwork as they arrive instead of letting them stack up. With information securely stored in the program, it’s also only a click away to find it again to answer a question about a transaction.
- It Streamlines Paperwork: Instead of writing receipts and invoices by hand, a robust online bookkeeping program compiles all financial information and allows for automatic reports and tracking. It’s easy to see outstanding payments and track the ebb and flow of income at a glance.
- It Improves Accuracy: A single subtraction error can echo throughout the books for weeks, and clerical errors are notoriously difficult to track down once they’re made. When a computer is doing the math, computation errors are a thing of the past.
- It Simplifies Payroll: For small businesses with employees, payroll can be an additional challenge, as hours need to be logged and taxes accounted and reported to various governmental entities. Online bookkeeping software prompts users to enter information and automatically calculates withholding, benefits and more.
- It Makes Business Mobile: Cloud-based accounting programs allow users to access the software from anywhere, which helps workers stay on top of data entry and invoicing even while on the road. With real-time updates, no one is left in the dark about cash flow.
How Online Bookkeeping Improves Small Business Operations
Options for Online Bookkeeping Services
- Quickbooks Online: There are five different online iterations of Quickbooks, so it’s easy to get as much or as little functionality as a business requires. Mobile features and add-ons like check printing make it easy to customize a program for any size company.
- Harvest: This is a good program for beginners who don’t need a full array of accounting features. It includes time tracking and is compatible with iPhone and Android phones for total convenience.
- Kashoo: This program is cloud-based for easy access from anywhere in the world. It’s also a great choice for real-time currency exchange for business who deal with overseas customers or suppliers.
- Brightbook: This option is completely free to use online, so it’s another good choice for beginners to get a sense of what they like before investing in a more permanent solution. The program offers invoicing capabilities and basic income and expense reports.
The Bottom Line
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