Online Bookkeeping

Bookkeeping nightmares?

Accounting is an essential part of business but has any of the following happened to you?

You’ve done well, business is good with lots of customers who have paid on time but somehow, the bank account seems empty?
You’ve had expenses and they are all filed. But it’s coming up to the end of the financial year and you haven’t worked out how much tax is due.
You’ve just landed at your holiday destination when you realized that you didn’t sent that last invoice. Its the one that will keep you bank account topped up to pay the bills until you get back.
It’s happened! Your computer has crashed locking away all your data so safely that no one can get hold of it – not you or your accountant.

You can avoid financial problems in life and business with careful planning and diligence. But let’s get real, it’s not carelessness or stupidity, anyone can have accidents and forget things. Accounting is just one of many things you need to do and it’s not hard to make a mistake.

How online accounting software could help

Always available – online and no need for software purchase and always updated. This means you can access it from anywhere. Should you be on holiday (even if you’re not planning work) you can send invoices and emails. Many systems have the added advantage that you can see when your email has been opened so you have a good indication of whether or an invoice has been seen.

Good support – Support is usually immediate and helpful – essential if you have a deadline.

Access for your accountant and/or bookkeeper– if you need to get some help from your team systems usually allow for more users if needed.

Secure – fully backed up and encrypted – This a major advantage as HMRC is totally unsympathetic to lost files due to computer failures. Losing files and data can cost a lot of time and therefore significant amounts of money.

Tips on choosing account software

So how do you go about choosing an account provider? It can be hard to decide when you are not a bookkeeper or accountant.

Firstly, there are features which all the providers seem to have:

Customisable invoices and estimates
Logins for several users
Payroll option
Preset and customisable reports

But you will need to ask yourself key questions to understand what your requirements are. So….

What is your business structure – sole trader or limited company?
How many invoices do you send each month?
How many payments do you make each month?
Do you need to take card payments?
Is payroll important?
How many people would need access (other than an accountant)?
How much can you afford?

Pricing will vary with the number of features you use so it is a good idea to work out what is essential and what would be nice to have. Pricing plans can be monthly. Many providers will offer a short free trial or discount for a period (not both). Don’t forget, prices are usually quoted excluding VAT.

Good accounting software should save you time but equally important, it should enable you to manage your finances efficiently so you can see what you have been paid, what you’ve spent and who owes you money.

Your accountant (if you have one) may offer advice but remember it’s your business so be sure that they are not just steering you towards their preferred choice.

What if you can’t get on with the software?

If you can’t get to grips with the software, most companies offer a rolling contract so you can cancel with one month notice. You may find it a pain transferring data between systems, but it is not impossible and a few hours (or days) work to move could be the best move for your business in the long run if you find online accounting isn’t for you.