What Are the Advantages of Using Online Accounting Software?

The rollout of Making Tax Digital (MTD) means more businesses and taxpayers are paying attention to online accounting software. But accounts software offers a much wider range of benefits than complying with digital record-keeping and tax reporting rules.

This could almost certainly be our specialist subject on Mastermind (which also explains why we’re not allowed on the office pub quiz team). Making the move to MTD-compliant software is a opportunity to reduce the amount of time you spend on admin, improve accuracy, and even get paid more quickly.

We’ve written an article about the potential benefits of using online accounting software in your business compared to traditional methods. You can read it below!

Access all areas

You can use online-based accounting software on any device with an internet connection, allowing you and other authorised users to access the data from home, the office, the airport, abroad, sitting on the toilet…

Wherever you have an internet connection, you have full access to your business’s financial information.

Real-time data

Your data will always be up-to-date wherever you access it, allowing a real-time overview of your cashflow, and facilitating business decisions on the go.

Instead of promising clients, customers, suppliers or financial advisers that you’ll ‘get back to them once you’re back in the office,’ you have the information you need to answer questions and make decisions there and then.

Plus, if you happen to spot a client whilst you’re out and about, you can check if they still owe you anything before giving it Barry-Big-Strides towards them.

Backed-up secure data

Backing-up your data is easy. In fact, you don’t have to back it up at all, it’s all dealt with automatically by the software provider, making it considerably less hassle and far more secure than traditional back-ups dependent on the integrity and reliability of paid data storage facilities. Or in-house servers and hard drives. Or even, horror of horrors, memory sticks. Because never get lost, fail, or become welded to the USB port when John’s dodgy laptop overheats.

Likewise, what if there’s a flood, fire, or burglary? Hosting data online means you can still access your financial records anywhere you have an internet connection. Your information is safe on the cloud and ready to access, whether that’s from a temporary office or from your couch, minimising downtime and disruption.

Better collaboration

It enables multiple personnel in many locations to access the data, allowing collaborative working – but you can closely control that data access.

Sensitive information isn’t being carried around on memory sticks that John takes home to fill with pictures of his cat, or emailed hither and thither to poorly-chosen distribution groups and accidentally CC’d contacts.

It can only be seen by personnel with authorised access. You control the access. We’re starting to worry about John though.

No more software updates

Living online means any new features, security updates, or buttons changing colour will all happen using magic (our developers had some feedback on this but we’re ignoring their calls).

Your accounting software is always up-to-date, and because it relies on remote servers rather than your own device or network, it can handle huge volumes of data. Updates are free and usually automatic, saving you time, money and stress. Support can be provided quickly and remotely. Lovely stuff.

Less time needed for admin

Most online accounting software will include all sorts of clever automations to do more of the administrative heavy lifting for you.

Things like bank feeds which connect to your bank and automatically populate the details of each transaction, automated payment reminders, and creating your own bank reconciliation rules all make a big dent in the time you need to spend keeping records up to date.

You’re also far more likely to claim the expenses you’re entitled to if you actually have proper records of them.

Learn more about using Pandle to make business accounting easier. Create an account today and decide what to do with all the extra time you get back.