| Bookkeeping is a time-consuming job. It is a | | | | costsoMany online bookkeeping solutions also |
| challenge to maintain books systematically while | | | | offer an add-on data back-up package that |
| handling and managing overall office tasks. | | | | includes a regular/daily back-up of your critical |
| However technology has come to the rescue! | | | | dataoMany sites offer a document management |
| Online accounting is a fast growing way used by | | | | solution too! So you can keep scanned images in |
| small businesses to take care of their accounting | | | | their secure servers for easy access in future. |
| needs. Online accounting has two components- | | | | Imagine having a break-in in your office and the |
| online accounting software and a remote | | | | computers get stolen!oOnline accounting services |
| bookkeeper. While you can have one and not the | | | | are especially ideal for start-ups and early-stage |
| other, it makes a lot of sense to have both the | | | | small businesses that want to minimize non-critical |
| software and the bookkeeper remote! | | | | investments and don't have the time or resources |
| Broadly there are two key ways-hosted and ASP | | | | for back-office functions. |
| based. In the hosted method, the software is | | | | However working in an online medium (software |
| hosted on the software company's servers or | | | | or service provider) does require getting used to |
| third-party servers. They hold the licenses of the | | | | as the bookkeeper is physically not present |
| software. The underlying software is still a | | | | before you. But technology has also made |
| desktop based one. It is just housed in their | | | | communication cheaper and available through |
| servers. In an ASP or online base method, the | | | | multiple medium- phone, chat, email, online meeting |
| underlying software has been specially designed | | | | tools or project management software. So after |
| for online access. For e.g. QuickBooks and | | | | a while, you don't miss the physical presence of |
| Peachtree also have an online accounting platform | | | | the bookkeeper or the software. |
| which have been designed specially for being | | | | It is important to understand one's complete |
| accessed remotely. | | | | accounting requirements before deciding on an |
| The benefits of online accounting and bookkeeping | | | | online software package. Most current online |
| are as follows:oLow start-up cost: You don't need | | | | packages don't handle inventory well or |
| to buy the software or worry about data | | | | complicated sales processes (with estimates and |
| back-ups. All you need is a PC with good internet | | | | sales orders) well. They are also not suitable if |
| accessoNo worries about system upgrades and | | | | you carry a large range of SKUs/items, as the |
| checksoFully integrated service-online accounting | | | | invoicing features are designed towards handling |
| service providers can handle all the activities from | | | | simpler sales/vendor invoices. |
| your accounting to personal /small business | | | | However, you can also still opt for an online |
| taxesoYou can actually afford to have a full-time | | | | service provider with a hosted package to give |
| dedicated accountant as the costs for such | | | | you best of both the worlds! |
| services are 50% lower than your local hiring | | | | |