A Detailed Guide to Small Business Accounting Software

Whether your business is small or medium sized, the need for automated accounting are far more varied than the need to calculate the profits and generate the interests. More than the errors free accounting, Business accounting software provide the best durability and safety to the data that has been recorded. We help you with a small business accounting software guide to help you decide the best for your business.

Benefits of an Accounting software

The benefits of an accounting software range much beyond the scope of the application. With just one software, the side benefits that are provided are many. A good accounting software guide for small businesses should be able to guide you through the process and also list the key benefits as:

  • Remote access to data that can be retrieved from any location using a user name and a password

  • The ability to access updated records at any point of time

  • Automated calculations and updating of data that is beneficial to the company in terms of the business decisions that have to be made

  • Error free and mistake free computing

  • Ability to lead the data on the cloud and access it on various devices throughout the organization

  • The need to remove and check the redundancy of data is eliminated

Despite the effectiveness of the system and ease of applicability of the data, on an accounting software, the widespread application of the data accounting software has been a challenge owing to the limited scope of knowledge that people have. At easyAccountax, the expertise on the system with a dedicated team catering to the requests of the customers, to incorporate the system on the machines is the USP that they have attained. Various accounting software is easily available in the market and based on the needs of the user, the specifications can either be added or removed. Sage One and QuickBooks online have been recorded as the most applicable to all types of businesses and the following are the reasons for the recommended use of accounting software for the small businesses:

  • As an owner of a small business the focus needs to be lent of business and expansion. With an accounting software in place, the company can divert the attention to other activities, that may be imperative to the success of the organization.

  • With an accounting software in place, the reports that are generated are schematic and well drafted. This creates the background for the information that may be needed to entail the future business decisions and decide upon the route forward

  • Accounting software also allow security and safety to the data that is to be stored creating a limited user access in cases where the access to certain portions of data needs to be limited.

It is imperative to note that the accounting software that is being applied has to cater to the needs of the business and the choice needs to be made individually not as an imitation of a competitor or otherwise.

Small Business Cloud Accounting Software Infographic

Cloud-Accounting-Software

Digital Cloud Accounting – The End of Trail for Traditional Accounting

Digital Cloud accounting that is also known as online accounting, is drafted on the same functional lines as the cloud computing. Here in this case, the software runs on servers and can be run using simple internet access. This is the primary choice of entrepreneurs who wish to enhance the business and work smarter. A better view and control of the finances is given such that the Accounting software also improves the overall collaboration with the team.

If you are wondering how to choose the best accounting software and ascertain what would be good for the business, just one thing is of important. That the Digital Cloud Accounting software should not be tedious and a chore to apply and use. Any business accounting software, whether digital or manual, if not available on the cloud is not a chosen option. Apart from using excessive energy and efforts, it may still have the risk of being lost and getting tempered with.

Explaining the Cloud

The best example of the cloud that may be given is the online banking system. Every time you wish to login you may be able to do so from anywhere and at any time. This concept of making data available over a range of devices and platforms on a secure and safe platform is called Cloud. This basically means that you no longer the need the hard drive and the data because everything is stored online.

Issues with Traditional Accounting Software

There are various issues when it comes to traditional Accounting. Some of the basic ones are:

  • Neither is the data up to date nor is the software ever ready

  • The system would just be user friendly to one machine and the data storage is on a single machine as well.

  • Loos of data is a common problem

  • Only one single user would have the access. Key people accessing the data would have to share the access details

  • Expensive and difficult to maintain over longer periods of time

  • Backups are risky and at the threat of a loss as well

  • Customer service is not very effective.

Why use the Digital Cloud Accounting

While you have the ease of using the software from any device that is connected to the internet connection, the connectivity with the accountants and data is online and throughout. Scalability is a great advantage and so it the cost effectiveness.

Basically, the digital Cloud Accounting platform would be able to make the data and the software accessible at any time and to any number of users. This also retains the data on the main server, which makes it even easier to access it anytime.

There is no backup required as the entire system is automated and you may not feel the need to necessarily run or download an app.

World class Security and Sharing

While you might retain the fear of having data somewhere stored online, it is actually the safest way to store data. Take for instance a laptop that is stolen. No one can still login to the system unless they have the user access and the password. As opposed to the hard drive storage, the data storage in this case is always live.

In addition once you have invited a set is users to access the data, you would be able to limit their rights of accessing the data. This would also help you control what amount of data at what level has to be shared.

Shifting to Cloud Accounting is the best and safest decision that you can take for your business irrespective of the size of the business.

How Cloud Accounting Software Increases Efficiency and Accuracy of Small Businesses

Cloud accounting software is the latest trend in accounting that helps in providing accessibility and sharing of all accounting details over a simplified and homogenous platform called the Cloud. With this software installed, the remote access is also granted such that all the accounting practices can be accessed from any location.

Increasing the Accuracy by Cloud Accounting

If you wish for your business to work better and faster without any chances of money laundering and financial fraud, then Cloud Accounting is the answer! Not only does cloud accounting lend transparency to the accounts but also increases the team collaboration. Any small business accounting software that cannot be shared on a cloud is not convenient and can be tedious to use.

The fact that a cloud based accounting software can be used from an interface of any device that is connected with a same internet connection. Scalability and cost effectiveness of a System make it the most fool proof and secure accounting platform to be used.

Benefits of Cloud Accounting For small businesses

When you are the owner of a small business, then you know the criticality of the processes that can be applied to keep a check on the financial transactions and records of the company. This is why it is important to incorporate the aspect of cloud accounting into the business such that the limitations of the traditional accounting are overcome. Some of the major benefits that are attributed to the use of Could Accounting into small businesses are:

  • Anytime and anywhere access: This feature allows the same access to be granted to each user who is connected over the internet connection. The possibility of limited access is also given such that some users may have limited access as per their need thereby increasing the safety of the information being shared.

  • Data Centralisation: In this way, there is only one file for the data. This means there are no wrong entries and no confusions while data is either being entered or evaluated. What the user would always see is the updated file.

  • Simple Sharing of data: Cloud Accounting makes it possible for the main user to share data with book keepers, accountants and other people who need to access data. The system of mailing the files and then facing virus attacks is all obsolete.

  • Managed and Scheduled backups: You do not need to back up the data manually ever. This means that all the data is stored and backed up automatically and any physical crash of the device would still allow data access from another device.

  • Offline and Online Access: You do not need an active internet connection for everything on the Cloud Accounting. You can chose to work offline and whatever changes you make would be synced up the next time you are online.

Easy Accountax is a one stop solution for all the accounting needs of small businesses. While they have the expertise to set up new systems of accounting and reporting, their cloud accounting software solution is one of the best services provided. Avail the best introductory offers and tailor made solutions to suit your Cloud Accounting needs now!

Flat rate state pension causes confusion

A third of over 50s say they do not have a clear idea about whether they will be better or worse off under the new flat rate state pension, according to Saga.

The insurance provider surveyed 10,010 people aged 50 and over about the introduction of the flat rate pension system in April 2016 and how they feel the changes will affect them. The results show significant confusion about how the new system will work and the effects on people’s standard of living.

The key findings of the survey are:

  • 25% think the new system will be generous

  • 16% think they will definitely receive the new pension

  • 33% think they will definitely not receive it

  • 7% knew how to make extra national insurance top up payments to secure a better pension.

People will be eligible for the new state pension if they are a man born after 6 April 1951 or a woman born after 6 April 1953 who has at least 10 qualifying years on their national insurance record. The government hopes the new system will boost the retirement income of the low-paid and self-employed, who typically fair less well with the current system.

Commenting on the research, Saga’s Paul Green said:

”Our research shows great confusion about changes to the state pension. Whilst there are a minority of people who are savvy who know how to make the most of what is on offer, it should not just be for [sic] savvy few to benefit.

”The government needs to do much more to raise awareness of the ways that people can boost their state pension.”

HMRC relaxes PAYE late filing penalties

HMRC will begin relaxing automatic late filing penalties for people who send PAYE information late, officials have indicated.

The revenue said it would take a ’proportionate approach’ instead of issuing automatic penalties in the event that an employer reports PAYE information late.

Investigations will now be concentrated on ’the more serious defaults on a risk-assessed basis’. The move will allow HMRC to focus on serious cases of non-compliance, and to invest resources in educating employers on compliance issues.

The decision reflects the conclusions of a policy document published by HMRC in February 2015. The report argues that small automated penalties are costly and resource intensive for the revenue to pursue, and detract from its ability to pursue serious compliance failures.

The news comes after a leaked HMRC memo revealed that the revenue would no longer be investigating each individual late filing of self-assessment returns. Officials will now waive the £100 late filing penalty if people provided a ’reasonable excuse’ on appeal.

Colin Ben-Nathan, chairman of the Chartered Institute of Taxation’s Employment Taxes Sub-Committee, welcomed the announcement:

”The requirement on employers to send PAYE information in ’real time’ has proved difficult for some employers to comply with, especially the smallest and those whose employees have unpredictable working hours. It has imposed new and sometimes onerous obligations on employers.

”HMRC are right to have taken a pragmatic approach so far to the levying of penalties, initially not imposing them at all for smaller firms and now promising to concentrate on the most serious defaults.”