More and more businesses are looking for online tools to better manage their business. In recent years, there are many software available for small business owners from managing social media, project management, file share/storage, to accounting software, etc. Today, I want to share about online accounting software (aka cloud accounting) and how that can help with your cash flow. First, let’s analyze why going on the cloud is so attractive:
3 key advantages of getting online:
- It’s Cheaper – When you factor the capability to have multiple users access to the software, no need to have a server to do backup of the data, and paying for annual upgrades; most online accounting software are more affordable than the traditional desktop version.
- It’s More Convenient – The key conveniences will come from the ability to share or work with any team member in your organization at the same time. It also allows you to work anywhere as long as you have internet; including your smart phone. You no longer need to wait for your accounting staff to give you financial reports to see how your business is doing. It is as easy as a few clicks away.
- Get Paid Faster – Many of my clients also love the fact that they themselves can generate a customer billing and send to customers right from the billing screen. We all know, the faster the bill gets send out the faster you get paid! Almost all the major players in the cloud accounting space either already have or easy to integrate with a merchant account which allows you the option to have your customers paid by their credit card. Yes, getting paid by credit card cost money, but in some instances it’s cheaper than spending the time to chase clients down for payment.
Now, let’s talk about what many bookkeepers don’t tell you…cloud accounting is NOT for all businesses. Though it has a lot of attractive features and conveniences, online accounting is programmed and catered to small businesses that do not require complex accounting modules or features that may be needed for certain industries. How do you know if it is right for you then? Talk to an accounting professional that is familiar with your industry and business to really recommend you the right choice of software to use. Ask someone who is knowledgeable with both online and desktop software.