Accounting matters are very time-consuming and complex, especially for people who do not have a background in finance. A small business enterprise also spends a lot of time in keeping its financial books in order. Use of the right accounting software can reduce these hassles. Online accounting software are gaining a lot of popularity and can support your business in many ways.
Before you invest in such software you must understand the advantages and disadvantages of using them in your business. This will help you in making an informed decision. Any small mistake due to a wrong decision can make a huge impact during an audit and can negatively impact the credit worthiness of a business and thus, it is important to evaluate your decision practically.
Advantages of Using Online Accounting Software
- A good online software will give you packages that are easy to use even for people who do not have financial knowledge. They use very simple forms and easy check and click buttons to guide you through the entire process of bookkeeping
- As the software is online, it will save your space on your hard drive and thereby, reduce the burden on your computer systems
- The problems related to installation and maintenance will not come since these functions will be performed by the service provider at the main server
- Updates will be easy to make and will not need your attention
- Good online software also make provision for creating back-ups for your data so that you can access your data even if something goes wrong with your account
- Most companies offer online tutorials free of cost on purchase of services of online accounting software
- Online software facilitates safe transfer of data files
- Most online software have in-built programming related to taxation and other legal requirements and they reduce your burden by combining all the accounting requirements in one package
- One of the most important advantage is that an online software can be accessed from anywhere in the world without the need of carrying laptops or access cards
- Online support or call centres of such service providers help you in navigating through the software easily
Disadvantages of Using Online Accounting Software
- Though online software is secured by service providers, they can still get hacked in some situations. Software that is not hundred percent safe should not be used for online transactions.
- It is difficult to access an online software if the internet connection speed is not good or the internet connection is not working properly
- While you can use public computers to check your data, it can be particularly dangerous if you do not take adequate precautions to log out properly and completely
- The features in online software might be limited as compared to a desktop accounting software
- Wrong service provider can leak your data which might damage your business
Thus, online software can be very useful in accounting transaction but it must be used with precautions