Posted by Tax Innovations on 12 Jul 2013

Choosing an Online Accounting System

Evolution of the web and the emergence of cloud-based data management have in recent years driven advances in online accounting. Underlying this has been the pace of change in the way businesses communicate and smoother integration between devices which have diminished operational barriers and initial hesitation to working in the cloud.

Increasing awareness of the benefits of cloud-based systems and willingness to utilise those opportunities have encouraged an expansion of the online accounting market and an inevitable proliferation in providers.  While the benefits are clear, it is also a challenging prospect to navigate differing specifications, claims and marketing hype to reach an informed choice faced with a growing availability and number of online accounting systems.

The benefits of having an Online Accounting System

The potential benefits to your business are worth summing up:

  • Greater information and financial reporting accessibility;
  • More efficient and secure data storage;
  • Flexibility in when and where accounting information is managed so better use of your time;
  • Control over and spreading of software costs, typically monthly, avoiding up front and upgrade fees;
  • Ability to scale up usage and options more quickly and easily;
  • Your accountant can access to live data allowing a more collaborative approach to the accuracy of information.

Do I need an Online Accounting System?

To achieve efficient online accounting outcomes it is important to give some thought before going with a particular provider, as the closeness of fit to your needs and confidence on data security are important to get right. In searching for providers and what they offer, the questions that you need to ask, include:

  • What do you want to achieve and track from the system?
  • What security processes are in place?
  • Does the platform integrate with another system you may use?
  • What information does your accountant need to see to advise you effectively?
  • Do you need to use the system for invoice management and banking?
  • How are upgrades managed?
  • Are add-ons available as I grow my business?
  • Can I extract data if I choose to switch provider and how would this be managed?
  • What information will I need to import to the system?

We are keen to work with our clients to support them in making the right choice, as we have an interest in accessing accurate data so we can provide up to date and proactive advice to assist steering our clients’ businesses in the right direction.  If you are new to us and would like to have a consultation to discuss your needs and how we may be able to help, then please contact us.

Contact Tax Innovations

If you would like any advice regarding the above article or would simply like to discuss other ways in which we could help you or your business, please contact us on 01962 856 990 or customerservice@taxinnovations.com.