Online Bookkeeping Services are based on web accounting applications such as Xero. These applications are more flexible and accessible as they allow business owners and their staff to access, to store and update financial data online. Any authorized person can access the financial data stored securely on a server at any time from any PC anywhere in the world.
The downside of the traditional PC-based accounting software that is purchased via a license is that it is installed on each user’s PC and will not have real time client’s financial information update and share. If the information needs to be accessed by different users at the same time it would have to be physically transferred between PCs. Online accounting suites allow real-time information update and sharing for all users.
Online cloud-based accounting applications can have an unlimited number of authorized accesses granted to the database.
Additionally, installation of the conventional accounting, PC-based application is done via external hard disk. Version update of the software is manually controlled and applied by the users. Online website-based applications are updated seamlessly with the modern security that safely backs up data. Version updates, therefore, do not need to be monitored by the customers and data is always secure.
Online Bookkeeping Services offer significant benefits and cost savings in carrying out accounting services for a business.
The initial package includes full extensive range of bookkeeping online solutions such as financial, payroll, tax and process control services at a cheaper cost in one package.
The data is interlinked, so there is no need for double or triple entry of the same information. For example, financial data for the business such as revenue and expenses will be used to produce profit/loss for the business, and this data will also feed and populate appropriate tax return for the business owner. Payroll information will also feed business expenses, so does not need to be entered twice. Once the tax return needs to be submitted, the majority of the information should already be populated automatically for your tax return if monthly bookkeeping has been done on ongoing basis. This process reduces operational errors as well as time spent on entering the necessary data into the system.
Bookkeeping services can be outsourced due to mobile and easily accessible application suite to the bookkeeping services professionals elsewhere in the world, allowing the owner’s time to focus on core aspects of their business. In addition, there is no need to ever physically meet your accountant and exchange documents over email, all of the information can be shared and accessed online. This is also a cost saving from an accountant’s point of view as they are able to service more clients in the same time space, which, in turn, lowers the cost of the services accountants provide.
Business owners exercise more control and transparent overview over its business’s bookkeeping, as up-to-date financial situation can be viewed real-time any time of the day. more details here: http://smallbusiness.chron.com/small-business-bookkeeping-tips-2349.html
Basic cost savings aside, the online bookkeeping services provide great opportunities for small businesses to forgo hiring office personnel dedicated to bookkeeping or obtain full range of accounting services elsewhere at full cost. The accounting suite enables outsourcing of administrative tasks of tax, payroll and bookkeeping services to the professionals at a cheaper cost letting the business owners concentrate their valuable time on the core business tasks.