• David Parker

Online accounting is entrepreneurs top tip


A recent article published on the NASDAQ website offers a list of helpful tips for new entrepreneurs who hope to build successful SMEs. Among those tips are the dual suggestions of leaving the accounting to someone else and utilising the latest accounting technology and software. The tips should come as no surprise if you know how online accounting is revolutionising the way SMEs do business.


Purple Accounts was the first in the Isle of Man to introduce online accounting back in 2007 - with a rather primitive portal. But it did the job and from there we quickly joined forces with Xero - now very much part of the furniture and we're a Gold Champion Partner!


The NASDAQ article suggests that recommending state-of-the-art accounting software is one of the best tips an experienced business owner could pass along to a new entrepreneur. Accounting software beats manual, paper accounting in nearly every respect. As for delegating small business accounting to someone else, it is a matter of contracting with a third-party provider who specialises in accounting.


As the article explains, not everyone is cut out for accounting - afterall you're the expert in what you do and not accounting.


Five Ways Online Accounting Is Revolutionising Business

If moving accounting online with a specialist provider is really a great tip for new entrepreneurs, there have to be at least a few reasons for it. There are actually five:


1. Online Accounting Saves Time

Online accounting platforms are built around technology. In turn, that technology is built on the idea of automating as many accounting tasks as possible. A good accounting software package saves time through automation. Business owners no longer have to spend hour after hour labouring over manual accounting tasks.


2. Online Accounting Is More Efficient

Accounting automation means an end to double and triple entry systems that are highly inefficient. Accounting software can integrate with bank accounts for daily reconciliation, record keeping, and so forth.


3. Online Means in the Cloud

One of the most revolutionary aspects of online accounting is that everything is done in the cloud. This means a business owner and all approved staff have access to accounting data in real time, from anywhere they have an internet connection. All it takes is a computer or mobile app.


4. Online Is More Accurate

Dispensing with manual accounting in favour of an online platform reduces errors and inaccuracies. Software handles all the number crunching, and the amount of human input is as limited as possible.


5. Tracking Business Is Easier

Finally, online accounting in the cloud keeps all a company’s data in one central location for easy access. This means tracking the company’s performance is as simple as can be. Business owners can customise reports for looking at history, current cash flow, future projections, etc. All the data is there at the fingertips.


The NASDAQ article offered a total of five separate tips for entrepreneurs starting a new business. The most important among those tips are the two having to do with accounting. Every business should have an accounting strategy in place, so it pays off to get accounting set up the right way in the earliest stages of a company’s existence. That way is online accounting in the cloud with a specialist provider offering a state-of-the-art software platform.


We would actually add a 6th - that you and your accountant can collaborate in real time to make decisions and act on the information. Therefore your trusted bean counter becomes your bezzy for busting numbers and making sense of them to max your goals.


If you'd like a chat about your small business and how we can help, email dvaid@purpleaccounts.com


Sources: NASDAQ