Congratulations! You’ve started you own small business, you’re excited, you’re pumped up, you’re overwhelmed. There are so many issues that require your attention: marketing, production, rent, wages, shipping, and accounting. Accounting is probably one of the most tedious tasks there are, but for a small business owner (actually for any business, big or small) it’s also one of the most crucial ones.
While hiring an accountant is probably the best option, it’s also the most expansive one. Not preferable when you’re a new business trying to be economical and save cash wherever and whenever you can. Given that the volume of your work the first couple of years as a small business isn’t going to be very high, it pays off to keep costs down by using a web-based application that does the bookkeeping for you. Keeping tabs on work hours, invoices and calculations. Even if you still decide to hire and accountant just to be on the safe side, the expenditure will be reduced since all of the data needed to be reviewed will be organized and ready.
The advantages of online accounting are mainly mobility and accessibility, you can input or change data anytime and almost anywhere. It’s great for small business owners that travel a lot, or are just taking their first steps with the new business and are still working a daytime job. The fact that it’s online means that you have fewer things to care about since someone else is taking care of application maintenance, upgrades, data backup and more. There is also an added safety element, the security of those services is top notch and there is less likelihood that the server will erase itself (or someone will erase it) than somebody breaking into your home/office or god forbids, a fire breaks out or other freak accidents.
SoHo is a great example of a web-based accounting service. SoHo (Small Office, Home Office) is a collection of tools that help control the business; it helps simply the process and improves your work flow. It’s also ideal for people that are working from home. It helps manage all of your contacts, as well as document, projects and inventory. SoHo also makes invoicing easier and even does everything for you after you receive a Paypal payment.
As a small business owner, online accounting solutions will save you time (and a lot of frustration with Excel), time that can be better used in other aspect of the business (Like social media marketing). Basically it’s a win-win; you save time in processes that cost you money and can invest that time in other process that will help generate more money.