The majority of organizations throughout the United Kingdom have spent the last several years trying to come up with ingenious, strategic and efficient ways to help their business come through the recession.
One of the elements implemented by many has been the use of online software to help with the reporting of a company’s accountancy.
As businesses still look over their shoulder and consumers continue to tread cautiously, the idea of using online software to cut the costs has been welcomed by many. However, investing in a new way of reporting within a company can always come with a level of caution – the pros and cons of this decision need to be weighed up.
Pros
Efficient And Easy To Use: The popularity in these systems is largely due to the efficient and eases of use it provides the client. The majority of online accountant software has been designed to allow for a company to self-train their employees which saves time, money and resources.
Resources Are Freed Up: With the use of an easier system it allows for resources to be freed up and provides less pressure on the accountants during a time when financial reporting is of strict importance. Thus, it saves on time and money for the company to look into future prospects for their company.
Allows For International Development: As a company looks to develop internationally (especially true if it is a small company) one of their biggest concerns is how to cope with the added pressure of dealing with complicated worldwide finances. However, with advanced accountancy software it allows for up to the minute currency reporting, easier transactions when multiple currencies are used and accurate VAT charging. With the same ease of access and reporting the current accounting team will be able to continue using the system with clarity and no extra work.
Efficient Bank Reconciliation: The software has the ability to import business banking statements and match them up with accounts. This will increase the accuracy in financial reporting and simplify money going in and out of the company.
Cons
Risk of virus: As with all pieces of software used online the chances of attaining a virus are always going to be there. That said, many online accountancy firms can offer guarantees and back up cover to help mitigate the risk of all financial information becoming encrypted.
Not As Individual: While online accountancy can provide an element of individuality to the requirements of a company some of the requests may be more complicated. To tailor make a piece of software for accountancy it could either take a lot of time, effort and resources or not be completed at all.
While the risk of a virus is apparent most organisations will have reputable anti-virus software and so will the online accountancy company. Also, the risk of data being stolen is evident within normal accountancy avenues and, perhaps, higher. While the old fashioned way of accountancy can provide more bespoke advantages in a time where procurement is of upmost importance for most companies, the idea of switching to online accountancy many not be such a risk after all.
With financial reporting a high point of interest within the public using online accounting can ease the pressure on the company. By introducing an efficient service the overall reputation of a company can be improved.