“Going Virtual”: The Power of Using Online Accounting Services to Manage Your Business

Posted by: Carol Post date: January 18th, 2011

Online or “virtual” accounting services use the Internet and other related technologies to provide critical business support. As a small business owner, online accounting services can help you better manage your business.

“So who would benefit from this? Let’s find out.”

Laura and Janine have a garden consulting business, Back To The Garden, LLC. Each works out of her own home office, collaborating on the design of organic, ecological gardens for individuals and communities and developing classes. The partners have divided up the bookkeeping tasks.

Laura pays bills out of their business checkbook and manually reconciles the bank statement. She likes having control over the outflow of cash. Janine makes deposits and types invoices for clients. She likes being directly involved with cash receipts but hates the repetitive nature of invoice typing.

Business has taken off and they are overwhelmed with work. Some of the bookkeeping tasks have fallen behind. Both women need current financial statements so they can better evaluate, plan and forecast. Neither has any idea of the net profit until they bring the books in to their tax accountant at year end.

“What would change for them if they used an online accounting service? Let’s look at one possible solution.”

I set Laura and Janine up with QuickBooks Online. QuickBooks Online stores both the accounting software program and the client’s data file on a secure, remote server. Multiple individuals can log onto their QuickBooks Online account, either together or separately.

Laura and Janine find that QuickBooks Online automates bill paying, deposits, invoicing and bank reconciliations. The partners have instant access to financial statements.

Initially, I log onto QuickBooks Online together with Laura and Janine and give them on-line instruction. I also let them know about QuickBooks “tune-ups.” Monthly, quarterly, or for as long as needed, I can perform a bookkeeping review, making sure that they were using the program correctly, that expenses had been posted properly, and so forth.

“So what are five ways an online accounting service can help you better manage your business? “

Benefit #1: Online accounting services save your business money. Freed from high overhead and travel costs, online vendors can offer a more competitive price.

Benefit #2: Online accounting services save your business time. By taking advantage of the instant communication via the Internet, services are delivered quickly and efficiently, with greater opportunities and options for creative solutions.

Benefit #3: Online accounting services give you a broader selection of consultants from which to choose. You are no longer limited to consultants in their own geographic area. You can choose the consultant that best meets your needs, regardless of where they are located.

Benefit #4: Online accounting services can help you feel more secure about your financial information. The security protocols used by major technology providers such as Intuit (developers of QuickBooks Online) are powerful and highly sophisticated. Online storage and transfer of electronic information is often safer than storage and transfer of paper files, which can be destroyed by fire and flood or stolen.

Benefit #5: Online accounting services reduce the overall number and amount of physical paper files you have to deal with. Financial records are stored on a remote server. Critical data is exchanged in electronic format, via a strongly protected and encrypted file transfer process.

When you can save time and money, have greater options, feel safer and your life is simplified, your spirit and creative energy is freed up to focus on your unique skills, talents and products. Your attention is on managing your business, not letting it manage you.

One Response to ““Going Virtual”: The Power of Using Online Accounting Services to Manage Your Business”

  1. llc tax Says:

    Thanks for an idea, you sparked at thought from a angle I hadn’t given thoguht to yet. Now lets see if I can do something with it.

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