4 Ways Online Accounting Offers Small Business Owners a Competitive Edge
Online, or “cloud,” accounting is one of the best tools available to give small-businesses a competitive edge. Here are four reasons why:
Cloud-based accounting programs enable small-business owners, authorized employees, and accounting specialists to access accounting records from a variety of devices with Internet access, such as laptops, desktops, tablets, and mobile phones. This means greater flexibility and efficiency, as authorized users can record, maintain, and analyze financial information from anywhere they have access to the Web.
Purchasing annual upgrades to accounting software can be costly, but because updates to online accounting programs are deployed over the cloud at no additional cost, small-business owners can always have access the latest tools without incurring extra fees. Online accounting programs also tend to be priced lower than local software. This is especially attractive to business startups or those moving from a manual to a computerized accounting system. Not only are upfront costs more manageable, but small-business owners get a higher return on their investment as new functionality becomes available.
Businesses using accounting software loaded onto a local computer risk losing data, identity theft, intellectual property theft, computer viruses, and other problems that can lead to business interruption. Private cloud services, on the other hand, provide a number of security measures to protect software and data, including encasing user-company storage with a firewall to provide protection against intrusion.
4. Storage and Speed
By using remote storage and application functionality, information resources are provided externally rather than internally. This saves valuable hard drive space and preserves computer speed.
Business owners can quickly fall behind competitors if they don’t stay current with technology. Online accounting programs can help small-business owners keep up with — and gain an edge on — the competition by being more efficient with their time and resources, and enabling them to focus on critical activities like overseeing operations, improving customer service, and winning new business.