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Small businesses get the most benefit from both accounting software and an accountant when they are able to work closely together. Advances in technology have made it easier than ever to work alongside your accountant, with advances in cloud computing meaning the online accounting software is readily available, allowing for far more immediacy and transparency in the relationship between small businesses and accountancy firms.
The technology that has made this sort of collaborative work possible is referred to in a number of ways, but ultimately they all mean the same thing. The most common terms used in the media are either 'cloud computing' or SaaS – which stands for 'Software-as-a-Service'.
Although this all sounds a bit complicated and confusing, it is actually a rather easy concept to understand. It involves using software that is not hosted on your own personal computer, but actually stored on external servers owned by the software company. Any changes you make to your files within the software will be updated in real-time on their secure servers, basically eliminating the need for constant back-ups. You want have to worry about compatibility issues either because it will run directly from inside your web browser, regardless of what operating system you choose.
The most progressive accounting firms have quickly realised that this provides new opportunities to work with clients, and to be able to serve customers all over the country. Many small businesses choose to use Online Accounting Software to constantly keep their accountant up to speed with the accounts of theit small business - avoiding any nasty surprises!
This way of working is many times more efficient than the old ways in which accountants would examine financial records. As well as being able to work on your accounts anywhere and at anytime, you can expect feedback from your accountant in a more timely fashion than was possible in the past – this is critical in the difficult financial period we are all currently facing.
The small businesses that I talk to really appreciate the added security of allowing their accountants constant access to their finances. In particular, it is reassuring to them that they won't get hit by nasty surprises or have to panic at the end of the financial year ever again.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
