Using an online accounting software has become the trend among small businesses, as it gives such businesses an affordable yet effective way to process their transactions and enhance their financial operations. This growing trend is providing an opportunity for small businesses that have limited staff and time to work on their labour-intensive financial tasks. So if you’re among the budding businesses in Singapore, here are some reasons why you should first try out an online accounting software instead of immediately purchasing an enterprise-scale accounting package.
1. Full Automation of the Accounting Processes
Similar as an enterprise-scale accounting software, an online accounting software also automate, streamlines and coordinates a company’s financial management activities, including the payroll, general ledger, accounts payable and receivable, investment management, and time and expense reporting. With an online accounting software, task execution is enhanced and accelerated, while the staffs’ productivity is increased.
2. Application Becomes More Accessible
A high percentage of remote employees is often maintained by small businesses to cut down on their real estate costs. Employees who work at home, virtual assistants, as well as executives who often travel inside and outside Singapore need access to the financial data of the business for them to effectively perform their jobs – and an online accounting software is capable of giving them that “anytime-anywhere” access. Such software allows any company worker to access any information related with the company’s transactions or financial activities from any Internet-enabled location.
3. Enhanced Financial Reporting
Financial reporting is one of the manual and highly error-prone processes both in big and small enterprises. The calculations and consolidations are done manually, which increases the risk for errors in the computations. Also, with fines and penalties for non-compliance with the guidelines and standards of financial reporting, smaller businesses just can’t afford to submit inaccurate financial statements. By using an online accounting software, generating a profit and loss statement and other financial reports can already be done rapidly, but with a more accurate and consistent information.
4. Technical Burden is Minimized
In some organizations, IT resources are limited and the same is true for smaller Singapore businesses. But with the best accounting software in Singapore like Million which is usually hosted by third-party service providers, small businesses can already avoid being stalled by hardware and software maintenance and implementation, and the company’s technical staff can now focus in handling more critical and important technology initiatives. Moreover, this accounting software is budget-friendly, which accelerates the return of investment of the business by eliminating upfront expenses and reducing the total cost of ownership.
5. Information Integration is Enhanced
Banking statements, account data, and transaction histories are also instantly incorporated to your online accounting software for reconciliation and tracking purposes, as most of these packages are seamlessly linked to banking websites. Some accounting solutions even offer an advanced integration, which provides users the ability to make transfers, trigger online payments and many more.
6. Security is Improved
As a business owner, you might be worried about the security of the financial information and data of your business since an online accounting software saves it online. But there’s nothing to worry about as security is the top priority for these business software companies. Furthermore, an online connection will make it easier for you to send invoices to clients, link up bank information and assess the financial health of your business anytime you want.
7. Opens Opportunities for Small Businesses
Another advantage of using an online accounting software is it allows you to track the business trends, and the losses and profits a lot better than before. Through this, you’ll be able to discover new opportunities that might help you in improving your revenue.