Exploring the benefits and challenges of online accounting software

In this blog, we delve into the world of online accounting software and its profound impact on streamlining processes, enhancing data accessibility, and fostering collaboration. Jess and Martin, our knowledgeable hosts of the Digital Insights podcast series, offer a comprehensive look at the top five benefits and challenges of embracing this technology in episode 2, which we summarise below.

Benefits of online accounting software:

• Improved collaboration: Online accounting software makes it much easier to communicate with your accountant. You can give your accountant access to your data from anywhere, and at any time, providing you with real-time exchange of information. This will help you make informed business decisions.
  
  
• Automation: Automation is a game-changer! Features like live bank feeds reduce manual data entry, eliminating the need to painstakingly input invoices and transactions. This not only saves time but also allows us to be proactive advisors as we can focus on higher-value tasks like data analysis and giving our clients valuable insights.
  
  
• Paperless office: This ticks the sustainability boxes! With online accounting, there’s no need for paper receipts and invoices. By capturing and storing receipts digitally, you can reduce clutter, support environmental initiatives and easily access your financial records without trawling through physical paperwork.
  
  
• Getting paid more quickly: This has to be the number one benefit! Online accounting software speeds up the invoicing and payment process. You can generate invoices instantly and send automatic reminders to your clients. This is crucial for improving your cashflow and reducing financial stress.
  
  
• Effortless reporting: With digital accounting software you have easy access to customised reports. With a few clicks, you can generate reports tailored to your needs, giving you valuable insights for decision-making. The software simplifies data analysis, and the reports can be shared easily with stakeholders.

Amongst other benefits, digital accounting software can help you save time and improve cashflow. However, if you’re thinking of implementing this, you may come across the below challenges, concerns or even misconceptions. Don’t worry! These can easily be overcome.

Challenges to overcome:

• Data security concerns: One common challenge is the perception that cloud-based data storage is less secure than traditional desktop solutions. In reality, however, online providers make security a priority, often using two-factor authentication to protect sensitive information. The systems can therefore be more secure than a physical computer left unattended.
  
  
• Cost concerns: Moving to online accounting software might involve subscription fees. However, the software is often more cost-effective than maintaining on-premises solutions, which may require expensive hardware and regular updates.
  
  
• Change management: Adapting to new accounting software can be intimidating for some. It's essential to have a clear strategy for managing the transition and providing necessary training and support to staff. Change can be challenging but is essential for progress.
  
  
• Choosing the right software: With numerous options available, selecting the right software can be overwhelming! Make sure you consult your accountant to identify which solution best fits your specific needs.

Embracing online accounting software can revolutionise your financial processes, speeding up payments and reporting, helping communication and freeing up valuable time. The challenges can be easily overcome with proper guidance and support, making the transition to online accounting a sound investment for businesses.

You can listen to Martin and me chatting about all things digital on our dedicated Digital Insights podcast series – just click here to listen or find out more.

Jessica Rafferty-Smith