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Online Bookkeeping: What are It's Benefits and Common Pitfalls

The key aspect for any business to organize its financial data and have it available at hand whenever needed. It's like the vitals of a body and nothing like the health apps isn't it to keep a track of our health now-a-days. Isn't it? Likewise, Online Bookkeeping offers a solution you can't miss learning about. Read ON! #StayInspiredOnTheGo
Online BookKeeping The current economic downfall has placed tremendous pressure on businesses. It is critical for businesses to strengthen customer relationships and ensure efficiency. Bookkeeping is one of the activities that can be time-consuming. However, the rise of online Bookkeeping is a potential solution for small and medium-sized businesses.

Advantage: Save time

For many online businesses or Small, medium businesses, establishing the business, and determining its direction will determine its success in the future. However, balancing the day to day papers with administrative tasks can be a challenge, which is why online Bookkeeping can be a better option because it makes the bookkeeping process efficient. All the information is prepared and is ready for analysis so that businesses can make decisions more quickly.

A software that accomplishes this is Zarmoney.com which is a software that is easy to use, and easy to set up, and customizable to your needs. The package has at least 12 different functions: from invoicing, reporting online payments and Quotes/Estimates making a business owner’s job easier. This, in turn, allows the business to focus on planning, analyzing data, and decide where to take the business next.

Advantages: Efficiency in your day to day dealings

Making, sending, and supervising invoices can be a time-consuming job. However, online Bookkeeping can make this process much more efficient and quick. This way,

invoicing contributes directly to customer satisfaction and ensures that the cash flow of the company is maintained. After all, if it is easy to place an order for your businesses, it is easy for the company to collect money. In turn, this can contribute to the overall growth of your company.

Advantage: Increased security

Information theft is pretty common when there is physical Bookkeeping. This is difficult to accomplish with online bookkeeping records since managers can effortlessly limit access to financial records. Moreover, most online bookkeeping software companies always upgrade their security systems to ensure that their customer’s data is safe.

Online BookKeeping Advantage: Save on costs

It is cost-efficient to hire a bookkeeper who will specialize in keeping your financial information organized. However, it is even cheaper to use the online bookkeeping

systems because they come in packages designed to fulfill your needs. Some online bookkeeping software can be accessed for free. Even those that charge a fee use a minimal monthly running cost like Zarmoney, only $7 per month for a small business.

The added advantage of keeping all your records on the cloud or in software can save money. Expenditure on office rent or space, equipment and supplies keep running costs low.

Disadvantage: Not completely accessible

While it is true that online Bookkeeping can be accessed from anywhere there is a catch: good quality internet connection is needed to access software. Though it is easy to use the internet anywhere, it may not necessarily be fast enough or of good quality to be accessible everywhere. Even more worrisome is the fact that if you use specific software, you can only access your records if the device you are using has the software client installed.

Disadvantage: Unfamiliarity is critical

Many software packages have been designed to have a user-friendly interface and easy to use. The problem is that a significant amount of bookkeeping software needs to be used by someone very knowledgeable in Bookkeeping or accounting. Hence, some staff may need additional training to be able to operate the software efficiently.

Online BookKeeping Disadvantage: Loss of data

The data for online Bookkeeping is usually kept in one place. So, if the data can be susceptible to corruption or data loss, this can lead to delays in day to day information, slowing down the business. This can lead to losses for businesses, which is why it is crucial to keep a backup of the data at all times, both online and offline. This can also be solved if you use cloud-based online bookkeeping software.

Though an online bookkeeping system may seem daunting, its apparent advantages, cost and time efficiency, increased security is something traditional bookkeeping systems can not provide. Besides, there are many software packages like Zarmoney that are user friendly and can be installed easily. Hence, it is in a business's best interest to use Online Bookkeeping.Just like Online Bookkeeping can save the time of the business from the administrative tasks, having an Appointment Scheduling Software like Acuity Scheduling can save a lot of time for the Business Owner and the Sales Team that can get invested in the conversions instead of co-ordination.

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Any facts, figures or references stated here are made by the author & don't reflect the endorsement of iU at all times unless otherwise drafted by official staff at iU. This article was first published here on 16th September 2020.

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