Doing your accounting online is a very practical option for small business owners. It can save you time, as well as money. Furthermore, with the latest advancements in the field of cybersecurity, doing your accounting online is very safe. Therefore, you don’t need to worry about your sensitive financial information ending up in the hands of a vicious hacker. Here is how to do your accounting online in a few easy steps.
1. Open a bank account
It is important to draw a clear line of distinction between your personal finances and the finances of your company. To open a business bank account, you’ll need to have your company’s name written in the register of your state, province, or country.
In addition, experts recommend that you open two business bank accounts – one for checking and one for savings. The latter will help you stash capital away for the moment when you’ll need to pay your company’s taxes.
2. Choose reliable and versatile accounting software
Once your business has a bank account, which is its ID before the taxation authorities, you should start thinking about getting accounting software. It should be both reliable and versatile in order to seamlessly integrate with a variety of other software products. The best news is that almost all of the best POS systems out there have powerful accounting capabilities. Here are some of them:
The best thing about this POS solution is the remarkable ease, with which it integrates with QuickBooks. This is one of the most popular accounting software solutions on the market today.
This POS solution developed by the AccuPOS Company integrates with the Peachtree accounting software. At the end of every business day or shift, the system generates the so-called ‘Z’ report. Then, AccuPOS automatically updates the Peachtree accounting software with all the generated sales information. You can install Peachtree on your computer or use it from the cloud.
This is a separate accounting system and is not attached to a POS solution. Instead, it works in the Windows interface. It features powerful analytical and reporting tools to help you create reports on a daily, monthly or weekly basis. ACCPAC has several separate accounting modules and is capable of integrating with other Windows-based accounting software. However, the fact that this product is exclusively Windows-based makes it somewhat inflexible.
3. Use a cloud-based remote accountant
Not having to go to your accountant’s office is a great time-saver, isn’t it? To take advantage of this option, you can hire an accountant who works remotely using cloud-based software. Every month, you’ll need to send them your company’s financial records, and they’ll work on them and store the information in the cloud.
Typically, the services of an accountant who works using cloud-based software are much cheaper compared to their competitors due to their lower operational costs. For an affordable fixed price per month, your online accountant will explain your numbers and advise you on how to act accordingly. In turn, this information will help you make good business decisions and develop your future growth strategies.