Top 5 Benefits of Online Accounting Software

A man started his business two years ago and has performed well so far. However, for accounting, he maintains an Excel spreadsheet in which he records transactions, such as the amount to be recovered from customers and the amount due to suppliers.

He now wants to expand his business and avail himself of credit from the bank. Still, to his horror, the bank has refused his request since his expenses were not adequately recorded, and no accounting records are available to him.

To make things worse, he is penalized by the Tax department for not being tax-compliant due to the lack of a proper accounting system.

Although this is a hypothetical situation, several small and medium-sized business entrepreneurs often neglect their overall accounting, which has a direct adverse effect on their businesses.

Every small business owner wants to save money, and they want to maximize their profits, too, and this is where the best online accounting software will help you out and meet your needs as well. Accounting software vendors have largely transitioned their products to the cloud, offering online subscriptions at a reasonable rate.

Their features include expense tracking, invoicing, and simple analysis reports. Small businesses need to adopt the best free accounting software because it provides them with features and tools that meet all their accounting needs, allowing them to save money by avoiding the need for external professional analysis of their finances.

Fortunately, recent developments in cloud computing have led to the introduction of several online accounting solutions, making accounting safer, more manageable, and more affordable for small business owners.

5 Benefits Of Using The Best Online Accounting Software For Businesses

Here we have five benefits of the best accounting software for businesses of all sizes-

1. Access — Anywhere & Anytime

The Best Online accounting software provides the flexibility to access your data at any time and from anywhere. You can be confident that you will have an up-to-date picture of your business's performance with real-time updates.

Cloud Accounting Accessibility

• Access your accounting data from any device with an internet connection.

• No longer tied to a specific PC or office location.

• Work from anywhere, even in a different city.

Ease of Use

• Quickly create invoices or share ledgers with just a few clicks.

• Access your accounting solution conveniently via a web browser.

• Streamline your financial tasks without being confined to a physical office.

Increased Flexibility

• Cloud-based accounting allows you to manage your finances on the go.

• Ideal for business owners who work on the go or remotely.

Today, several of the best online accounting solutions are available, providing small business owners with cloud-based accounting tools that enable them to stay on top of their finances even when they are on the move.

2. Cost-Effective

For a small-sized business, being cost-effective is the biggest priority. When budgets are tight, business owners often make the mistake of cutting expenses on an accounting solution.

Well, not anymore! By adopting online accounting, businesses can drastically reduce their upfront costs. You would no longer need to worry about expensive version upgrades, maintenance costs, and server failures if you bring your finances to an online accounting solution.

If you’re an Indian startup, Giddh will offer you a Free Subscription to its entire online accounting platform for one whole year.

3. Expense Recording

Keeping track of both direct and indirect expenses can be exceptionally hard. Owners of small businesses often complicate their financial situation by not properly recording their expenses. As the financial year ends, the clutter of mismanaged expenses frustrates them, as they are unable to track their financial footprint.

Challenges with Manual Accounting

• Storing receipts and bills in physical files becomes confusing as your business grows.

• Manual data entry in Excel can lead to errors (e.g., extra commas or missing zeros).

Cloud-Based Accounting Benefits

• Keeps all your expenses and accounting activities in one place.

• Helps you stay organized and on top of your business finances.

• Protects your financial data from loss in the event of a computer crash.

Importance of Small Business Accounting Software

• Essential for any business, whether retail, consultancy, or other types.

• Requires regular maintenance and updates of your financial data, whether entered manually or electronically.

Once you’re forced to stay up to date with your financial data, you will notice an added benefit of finding the financial pulse of your business. This means you can easily spot any gaps or credit problems.

4. Easy and Direct Tax Compliance

The Indian tax system's complexity poses a challenge for business owners to stay compliant on time, every time. Not to mention, with the introduction of GST, the entire tax landscape changed, and many small Indian business owners fell behind in filing their GST returns, resulting in penalties from the government.

GST Suvidha Providers (GSPs)

• GSPs help business owners stay tax-compliant by collecting and filing data.

• Assist in ensuring GST compliance for businesses.

Online Accounting Software Benefits

• Simplifies bookkeeping by generating essential financial reports.

• Reduces frustration in managing financial records.

• Streamlines accounting processes, offering numerous benefits to your business.

GST Accounting Software Advantages

• Simplifies the process of filing GST tax returns.

• Allows easy tracking of invoices.

• Provides quick access to essential financial documents.

To make things easier for small business owners, the best online accounting software, such as Giddh, offers the option of direct GST filing. This allows them to avoid the hassle of seeking assistance from GSPs and file their GST returns independently.

5. Collaboration and Analysis Made Easy

Aside from requiring greater visibility into business financials and operational data, a small business owner should also know more about what’s actually driving business growth. There are several key financial reports, such as the trial balance, profit & loss statements, and balance sheet, that the business owner requires on a timely basis for analysis of their business.

Easy Sharing of Reports

• Generate reports online with just a few clicks.

• Instantly share them with accountants, sales teams, or other stakeholders.

• Eliminates the need for flash drives or manual data transfers.

Better Financial Insights

• Access a dashboard showing key financial details.

• View monthly and yearly net worth, expenses, and revenues.

• Compare current data with past months or years for better decision-making.

Track Payables and Receivables

• Easily monitor money owed to others (payables).

• Keep track of money owed to your business (receivables).

• Gain a clear view of cash flow and financial health.

However, all this information would be of little use to a business owner if it’s not easy to analyze or comprehend. And thus, cloud-based accounting solutions like Giddh offer a dashboard that provides financial insight in easy-to-understand graphical charts and graphs.

In Closing

In the end, the process of transitioning to the best online accounting software is a big step in itself, but it will save you a lot of money and time. If the bookkeeping process stresses you out and you don’t look forward to paperwork, this transition is vital. In that case, consider getting the best accounting software for small businesses as soon as possible.

From shopping to banking, today almost everything is managed online. If you are the owner of a small business and want to grow and don’t want to suffer losses, it’s high time you bring your accounting to the cloud and simplify your business. Want to witness the magic of cloud accounting?

FAQ:

1. How can online accounting software help small businesses manage finances effectively?

Answer: Online accounting software automates financial tasks like invoicing, expense tracking, and tax calculations. It ensures accurate records, improves efficiency, and provides real-time financial insights, allowing small businesses to make informed decisions and stay compliant.

2. What are the key features of cloud-based accounting software for small business owners?

Answer: Key features include automated invoicing, real-time expense tracking, customizable reports, multi-user access, and secure cloud storage. It helps business owners streamline accounting tasks and access their financial data from anywhere.

3. How does online accounting software simplify GST compliance in India?

Answer: Online accounting software streamlines GST compliance by automating GST invoice generation, tracking sales and purchases, and calculating tax liabilities. It integrates with the GST portal for easy filing and avoids manual errors.