The advent of the online accounting system started many years ago and it was met with some mixed reactions from users and accountants. Since then, there was no stopping this new technology to gain a foothold. Most businesses have adapted to this new technology that has become a wonderful financial tool to the accounting world and has made life easier for business owners when it comes to preparing taxes, tracking expenses and most especially determining the company’s growth and revenue.
Because of its ease, convenience and usability and as more and more have depended on it, there are both advantages and disadvantages to totally relying on the online accounting system.
- Faster Processing – In general, the online accounting system is much faster than the limitation of an accountant doing the job. That is, there is so much things done in one sitting than someone who spreads out a balance sheet and ledger.
- Simplicity – Most start-up companies only have the business owners who do their own financial records for a start. They are not accountants nor bookkeepers and they find the accounting task tedious and challenging. Most online accounting systems are easy to learn, adaptable and user-friendly. It is simple enough that one who hates numbers can be able to love them, eventually.
- Accuracy – There is not much space for error in the online accounting system unlike manual accounting that does repeated posting of the same accounting data.
- Reliability – Because of its promptness and accuracy, the online accounting system is reliable and dependable, so a business owner and accountant can accurately determine financial standing.
- Efficiency – The online accounting system ensures better time, quality of work, accuracy of data and resources. Nothing beats its efficiency as compared to doing everything manual.
- Easy Availability and Up-to-date Information – There is availability of information in data-sharing, a common feature of the online accounting system. Information is also up-to-date since there is quick updating and nothing is left unturned in data inputs.
- Cost effectiveness – Hiring an accountant or a team of accountants could be costly. Although the online accounting system usually has an upfront cost in set-up and some system upgrades in the future, generally it is more cost effective since the required output in financial reporting is more quick and easy, saving time, money and resources.
- Collaboration and Synchronicity – The online accounting system easily allows business owners to give permissions that provide access to outside and freelance bookkeepers and accountant to access some pertinent data. With a click of a mouse, accounts are seamlessly reconciled and import data.
- Security– The protocol in security is valued so only people given access to can take hold of the financial information.
- Works as a Partner and Motivator – Accountants and Bookkeepers are respected in their job and position because they have been trained well for the job. The online accounting system is also a dependable partner and reliable tool that has made accountants more productive and valued.
- Cost – There is a cost involved in every online accounting system given the features it can offer to the company. There are options for free online accounting software available today which can be of great help. Upgrades also require added cost and system checks and maintenance. Training is important for the accountants and staff to use the online accounting system. There is also cost of training to be considered.
- Technical Issues and problems – When dealing with computers and software, most often some technical issues arise. There may be power outage or perhaps the computers might experience a glitch due some virus. Some new users might use a software task incorrectly causing some potential error in the whole online accounting system.
- Potential Fraud and Pilferage – There may be hackers with bad motives who would want to hack in a certain business’ financial data and use it for personal gain. An online accounting system may be prone to hacking with data stored in the cloud risking exposure of bank details, credit card information and business loans. With this, business owners must diligently ensure to protect financial information.
- Fear of Unemployment – For some it can be a motivator but for others it could be like a threat or a staff’s fear of redundancy and they may show less interest in their work.
- System Failure – In every automation, there is always a challenge to having system failure due to a crash or some hardware failure that can lead to information loss. With this, it is imperative to have a back-up for everything.
- Health Issues – Too much use of computers may eventually lead to many health problems such as: backache, eyestrain and some muscular discomfort leading to work inefficiency and increase in medical insurance expenses.
Online accounting systems do work and they are dependable financial tools to rely on. One system that stands-out is EasyFIS. It is a Software-as-a-service (SAAS) sales, inventory and accounting system designed for micro, small and medium (MSME) enterprises.
EasyFIS is simple, accurate, efficient, fast, reliable, up-to-date, collaborates, safe and most of all, works as a partner and motivator. If you want to access anytime and anywhere, EasyFIS can manage your business in real time at the comfort of your home. Most importantly, it is CAS (Computerized Accounting System) compliant ready for government taxation in the Philippines.
For more details, check out human-incubator.com.