| p>Not too long ago new businesses either had to | | | | salesperson could even log in from a client's office |
| go to the store to buy a bookkeeping program, | | | | right after closing a sale and create the invoice on |
| or outsource their bookkeeping to a local | | | | the spot. The client gets the invoice in their |
| bookkeeper. Both solutions worked but not | | | | email and hands the sales person a check or |
| without problems. | | | | makes a deposit by credit card. The paper |
| Purchased accounting packages required the user | | | | chase is dramatically reduced. |
| to train on the system. Often an outside | | | | Collaboration with Bookkeepers: Since the |
| consultant would be required to set up the | | | | hosted application can be accessed from any |
| software and configure a suitable chart of | | | | location, the business that uses a contract |
| accounts. The software would need updates, or | | | | bookkeeper can now access data without needing |
| an updated computer would need the software | | | | to call the bookkeeper. Not only is this far more |
| installed and data transferred over. | | | | convenient but it allows the owner to quietly |
| Sending everything out to the bookkeeper places | | | | monitor the bookkeepers progress at anytime |
| the records outside the business office and | | | | with a few clicks. |
| therefore inaccessible to the business on short | | | | Offshoring: Since the hosted accounting system |
| notice. Checking something in the accounting | | | | can be accessed from anywhere, offshoring of |
| means calling the bookkeeper for the information. | | | | bookkeeping, and achieving the resulting cost |
| A new generation of hosted accounting | | | | savings, becomes simple. Simply scan the original |
| applications is simplifying things for small business | | | | paper invoices and upload them to an online |
| owners and opening up new ways of doing | | | | storage location such as Google Documents |
| business remotely. A hosted accounting or | | | | accessible to the offshore bookkeeper. The |
| bookkeeping package is software that lives on | | | | documents are input and the work can be |
| the provider's servers rather than on a computer | | | | checked by the owner online anytime. A side |
| in the small business. The user client accesses | | | | benefit of this system is that a digital backup of |
| the software over the Internet. This has many | | | | the original accounting records is created offsite. |
| advantages over the old way of handling | | | | Automatic Updates: As the hosted application is |
| accounting. | | | | updated with new features or to reflect tax law |
| Remote Date Storage: Since the data is stored | | | | changes all users get the updates automatically. |
| off site, it is not vulnerable to loss in a fire, flood | | | | There is no new software to buy or install and no |
| or break in at the business. If the business has a | | | | more costly system migrations to worry about. |
| physical loss at least all the accounting records are | | | | Reasonable Cost: A number of hosted |
| safe. | | | | accounting applications charge a monthly fee for |
| Regular Backups: The host takes care of | | | | use and some offer a discount for annual |
| backing up your data with remote servers. A | | | | payments. The low monthly fees are good for a |
| major loss of data would devastate the host's | | | | small business because there is no need to invest |
| business, so they take the job of maintaining | | | | upfront in accounting software. Generally the |
| client data very seriously. | | | | cost of subscribing should similar to the cost of |
| Access from Multiple Locations: The business | | | | buying and occasionally upgrading stand- alone |
| owner or manager can access the accounting | | | | software. Systems suitable for a small business |
| data from any location with Internet access | | | | run from £10 to £30 per month, as an |
| without having to call anyone. No more explaining | | | | estimate. |
| over the phone to an assistant how to log in and | | | | When setting up a new business or seeking to |
| retrieve data or paying the contract bookkeeper | | | | simplify existing business processes, consider |
| to look up an invoice. Remote access is ideal for | | | | going with a hosted accounting software solution. |
| a business with multiple locations or for digital | | | | Hosted accounting applications provide many |
| nomads running their online businesses from | | | | advantages over traditional software. Offsite |
| beaches around the world. | | | | backups, remote access, automatic updates, |
| Instant Paperless Invoicing: In most hosted | | | | reasonable cost, and ease of access to |
| applications, invoices can be created directly in the | | | | information, are all benefits to hosted accounting. |
| accounting system and emailed out directly. A | | | | |