Whether you choose to run your business accounting via online
accounting options or through an in-house accounting software package
depends on various factors. We discuss the pros and cons of online
accounting services to help you make an informed decision.
Ease of access
What’s good:
Online accounting services are accessible at any time, from anywhere,
through an internet connection. To access this accounting solution,
there is no need for a VPN.
However: Anytime, anywhere
access does carry potential risk such as the security of the Wi-Fi
connections that are used. Another consideration is that your employees
need to protect their screen views from onlookers if they are in a
public place.
The security factor
What’s good:
If you are the owner of a small company, an online bookkeeping service
may provide you with better security options than you would be able to
provide yourself with an in-house software solution.
However:
The level of security you need for your company is dependent on the
online service that you choose. To lock down access, however, larger
financial institutions prefer to keep their accounting interactions
within their own network.
The compatibility factor
What’s good: Many online accounting solutions are compatible across all platforms.
However:
In order to be able to use the service, you need to have internet
access, whereas if you have your bookkeeping software in-house, you will
be able to sync any time that you are on your computer.
The usage of resources
What’s good:
Online accounting service providers are responsible for keeping your
services running and they have to provide IT backup support.
However:
In order to be able to run online bookkeeping services, you need
adequate bandwidth and if your business is located in remote areas
without proper internet access, this could pose some challenges.
Employee productivity
What’s good:
Businesses have reported increased employee productivity with the use
of online services as any bookkeeping task can be undertaken remotely
without having to be at the office.
However: A reliable
internet connection is necessary. If this is not always possible it may
greatly hinder employee productivity and affect deadlines.
Backup options
What’s good: Internet based accounting service providers are responsible for data backup which is convenient.
However:
You need to depend on the provider to keep your sensitive information
safe and secure which may not be the right solution for every business.
What about up-front costs?
What’s good:
In most cases, the initial cost for online accounting solutions is
lower than if you were to purchase in-house bookkeeping software.
However: Online services may cost a little more in the long run as they often require you to commit to a long-term contract.
While many businesses today are choosing online accounting solutions,
it is important to consider accessibility, security, initial and
maintenance costs. In order to choose the best solution for your
business it is advisable to weigh up all the pros and cons carefully.