Smaller organizations have unique financial management needs. With online accounting software, they can enhance operations by streamlining and automating transaction processing and other critical financial activities.
The popularity of online accounting software solutions is growing at a rapid pace, empowering smaller businesses in all industries with an affordable and effective way to process their financial transactions, and enhance their related financial operations. Why should every small business consider using online accounting software? Because today’s accounting processes are becoming increasingly complex, and as a result, companies must devote more effort and resources to financial management and related activities.
This trend poses a particular challenge for small businesses that have limited time and staff to allocate to cumbersome, labor-intensive administrative financial tasks. Yet many enterprise-scale accounting packages on the market today are too costly and sophisticated for the needs of smaller companies, forcing them to continue to rely on manual procedures to satisfy their financial management requirements.
Online accounting software can provide tremendous value to a small business, such as:
Full Automation of Core Accounting Processes
Online accounting software streamlines, automates, and coordinates all fundamental financial management activities including general ledger, payroll, accounts payable, accounts receivable, time and expense reporting, and investment management. So, execution is accelerated and staff productivity is dramatically increased.
Anytime, Anywhere Application Access
Small businesses often maintain a high percentage of remote employees to cut down on real estate costs. Executives who travel, workers operating out of home offices, and “virtual” assistants all need access to timely and accurate financial data to perform their jobs as effectively as possible. Online accounting software makes that possible, allowing any worker to access information about transactions and other financial activities from any Internet-enabled location.
Improved Financial Reporting
In most small businesses, financial reporting is a manual and highly error-prone process. Consolidations and calculations are conducted by hand, resulting in a significantly increased risk of mistakes. Additionally, with penalties and fines for non-compliance with financial reporting standards and guidelines getting stiffer, smaller companies simply cannot afford to produce inaccurate or inconsistent financial statements. Online accounting software can help rapidly and dynamically generate profit and loss statements, balance sheets, and other basic financial reports so that the information contained in them is accurate and consistent, every time.
Minimized Technical Burden
IT resources are scarce in every organization, and nowhere is this truer than in a small business. With online accounting software, which is typically hosted by a third-party service provider, smaller companies can avoid the hassles associated with software and hardware implementation and maintenance and keep technical staff free to handle other critical company technology initiatives. Moreover, online accounting software is more budget-friendly, accelerating return on investment by eliminating large upfront expenses, and minimizing total cost of ownership.
Enhanced Information Integration
Many online accounting software packages seamlessly link to banking websites, so statements, transaction histories, and other account data can be instantly incorporated into youronline accounting software for tracking and reconciliation purposes. Some online accounting solutions even offer advanced integration, providing the ability to dynamically trigger online payments, make transfers, and much more.