How does online bookkeeping make your job easier? What an attractive question, fledgling small business owner; I’m glad you asked!
Here’s something to ponder: about 20% of small businesses will fail within the first year, and even more fail within the following few years.
That would be a dismal statistic to fall into. In fact, there are many pitfalls that a small business, or any business for that matter, can fall into during its lifetime.
One of those pitfalls is poor bookkeeping.
Bookkeeping is like peering into a crystal ball. It can tell you how your company is doing, where it’s been, and where it’s going.
You need proper bookkeeping to survive those rocky first few years. That’s why you should look into online bookkeeping software.
But if you’re still unsure, here are a few ways online bookkeeping software can make life easier for you and your growing business.
The Importance of Accurate Bookkeeping
Bookkeeping can be a daunting, complicated task.
It’s a headache that you don’t want to deal with, but you can’t pawn it off on an inexperienced employee.
The penalties for bad bookkeeping are too great, and it’s simply not worth the gamble.
Sloppy bookkeeping can lead to an inaccurate picture of your overall business, leaving you rudderless in the water and unable to chart a course for the future.
At best, you’ll be using poor data to plan, which could lead to a shortage of cash flow later when you least expect it. At worst, you could be audited.
You’ll be at the mercy of the IRS, where even a small mistake made a few years ago can cost your company time and money.
That’ s why online bookkeeping can be such a blessing.
Having an automated system take care of your bookkeeping ensures you won’t be audited. And if you are, it’s better to have your business expenses organized for easy review.
Bookkeeping software comes into play here.
It’s great for setting business and tax reminders, keeping track of expenses, and making sure your company remains compliant with government rules and regulations.
Some bookkeeping software companies even provide expert review by a team for peace of mind.
It also allows you to find tax-deductible expenses. Saving money is crucial for any small business. And saving money that would otherwise go to taxes is even sweeter.
But that’s only possible by if you’ve managed to keep track of everything.
Online bookkeeping makes it easy. No need to dig up your receipts from the previous year, let the software worry about that.
Working For You
The real goal of automated bookkeeping is to free up time so you can run a successful business.
Whether you own a vintage clothing store or a yoga mat emporium, you have enough to worry about day-to-day. Your employees probably have their hands full too.
The last thing anyone wants to deal with is something that could be handled by an automated system.
Online bookkeeping can be that automated system! It can help manage your expenses such as:
- Paying your staff
- Paying rent
- State, local, federal, and foreign taxes
- Hotel and travel
- Home office
- Wining and dining potential clients
The list goes on, even down to small expenses otherwise overlooked in the shuffle.
Don’t be that guy that keeps all his business receipts piled up in some dark, disorganized, flammable filing cabinet.
In this day and age, having your records kept in a safe, secure place is a necessity.
Bookkeeping software backs everything up for you. No longer will you have to trust your finances to a lone computer protected only by the password “123.”
While nothing’s more old-timey and romantic than a brown ledger containing all your records, that technology just doesn’t cut it anymore.
The cloud is your friend, and it will ensure none of your receipts or records ever go missing.
After all, these are YOUR records, and you should have access to them whenever you need them.
Day or Night
Automated bookkeeping gives you access to your finances anytime, anywhere. Every aspect of your business should work for you and for the betterment of the whole business. Why not bookkeeping?
Let’s say you have an important question or need financial guidance ASAP. How appealing is it to hear from your accountant, “Yeah, I’m going to have to pencil you in for next week.”
That’s not going to fly.
You deserve to have your financial advice available on your business’ schedule.
For something like that, you’re going to need online bookkeeping to automate the process of organizing data, and software to effectively interpret that data.
An accountant simply isn’t going to be able to operate like that.
If you are considering using an accountant, you at the very least recognize the importance of bookkeeping.
However, remember that accountants are human too, meaning they operate on their own schedule, may not always be available, and can make mistakes.
No matter how skilled they may be, they won’t be as efficient as a computer, but that’s not really your problem.
Your finances shouldn’t be at risk for human error, and they shouldn’t have to take a backseat whenever your accountant is sick with the flu.
Online bookkeeping and bookkeeping software work for you on your schedule. What good is having an accountant if you can’t access informed financial advice whenever your business needs it?
As mentioned previously, an accounting error may paint an inaccurate picture of your company, and it may cost your company time and money that it can’t afford.
Remember everyone, audits aren’t fun.
Did I mention that accountants also require a lot of money? That bookkeeping and financial know-how doesn’t come cheap, you know.
While an accountant may be expensive, many online bookkeepers are flexible and offer pay-as-you-go options for your convenience.
Online bookkeeping software aims to make the accountant obsolete. Here are just a few services that online bookkeeping software provides:
- Automated bookkeeping
- Automatic reminders & online bill pay
- Preparation for those pesky taxes
- User-friendly dashboard and interface
It’s like having a robot financial guru at your disposal!
Online bookkeeping is here to make your business easier, and bookkeeping software is here to make your business successful.
Being able to see the future may be science fiction, but making educated decisions based on accurate data is not.
That’s where forecasting comes in.
Forecasting allows you to have an unbiased view of your company’s health. It’s especially useful when seeking a loan, presenting to investors or an audience, and keeping track of credit and interest rates.
With bookkeeping software, you can even create unlimited scenarios to see how different, hypothetical events could impact your business.
If forecasting is something you already do with your company, that’s excellent. But if you’re not using online bookkeeping and bookkeeping software, you’re missing out.
If forecasting is something that you don’t do, you’re losing out on invaluable tools that your competition won’t hesitate to employ.
The goal isn’t just to survive those first few years as a small business; the goal is to thrive.
Keep your data in the clouds, instead of your head.
Online Bookkeeping Is the Way to Go
All of this might sound intimidating, but it doesn’t have to be. Automated bookkeeping is designed to take the hassle out of your hands.
Online bookkeeping and bookkeeping software can keep track of all of your records, save you money, and provide a forecast of the future, giving you peace of mind.
If you’re unsure of where to start when it comes to online software, our software automates bookkeeping for you and does everything we mentioned.
When it comes to online bookkeeping, we can help. We can take your business out of those first years of struggle and turn it into a not-so-small business.
Accurate, reliable bookkeeping doesn’t have to be stressful, and it isn’t a luxury. It is a necessary part of running a successful business.
The next time you’re behind on your bookkeeping, check out our website and see if we can’t help you catch up.