All About Online Accounting
Accounting in the USA has seen lots of change. There was a time when the accounting was more of book keeping done in huge ledgers and was the purview of select few. It’s not so anymore. Accounting is much more widely accepted as a business function and general people also look for the accounting details of the firms they are associated with. Also, a lot more transparency is required now. Keeping in line with the development of IT and other technologies, the accounting is also now based on the internet and has taken wide strides. Online accounting services, viewed as merely experimental only a few years ago are now becoming the run away business.
As such, the accounting industry has been a little slow to adopt the newer technology and has not left fully its love for the pen and pencil work. The accounting industry has seen new trend of outsourcing its work now. All these have forced the industry to adopt the Online Accounting. The internet as well as other technologies are used now to build more efficient book keeping systems. It’s also becoming more cost efficient for larger firms to outsource the work. Outsourcing is much easier with work being delivered online. It’s also much more cost effective and fast.
The shift from the practice where clients paid the accounting firms as per the billable hours to a fixed fee based system is forcing the accounting firms to deliver efficient work in cost effective manner. This means that they cannot any longer cover their inefficient work by merely putting in more time into the projects. This has favored the Online accounting practices much. Value billing has forced accounting professionals to become more efficient.
Online accounting very effectively cuts short the time taken to transfer and exchange information between the clients and accounting firm. The seamless transfer is far more efficient and much faster. The accounting firm has dynamic access to the sourcing documents of the clients firms and can access anytime any information it requires from its clients side. The online accounting system also allows the accounting firm access to client data from far away locations with a few clicks on the internet. The time sensitive financial data is readily available to the accounting firm.
Other than the speed and cost of services, online accounting enables better customer service and more reliability and trust. Accounting firms recently have been exposed as in cahoots with some very big clients, committing serious financial crimes. In this scenario the new practice builds more transparency also.
The online accounting practice also provide for more timely communication between the firm and clients. Since the client has more immediate access to information and to time sensitive documents with Online Accounting practices, questions and problems can be more easily identified and resolved. This translates into increased profits as well as happier clients!!
Since the clients get better service, they get more value for the money they spend. It is generally quite cheaper for the business owner to outsource the bookkeeping and accounting than to hire and supervise it in-house. Savings for the business owner can be as much as 30% for some clients! Online Accounting is great for such services.
The accounting firms also charge now a fee (fixed on a monthly basis) almost five times the average monthly fee (based on billable hours) they charged earlier. Generally the various online accounting processes available are customized for their users where they can choose the menu of features they like. Online Accounting is an excellent tool for accounting and book keeping, one that is help full for both the accounting firms as well as the clients.
These are just a few tips to help with online accounting. Hopefully you found these helpful. If you would like to learn even more about how you can streamline the efficiency of your business finances, then you are more than welcome to contact us and we will take a look at your unique situation and offer some sensible solutions that would work best for you!
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