Manual versus computerised accounting: which is best?
No business can survive without a solid infrastructure functioning behind it. There are few places in which the truth of this premise is more apparent than in the sphere of accounting. Without finances being carefully managed and taxes being paid, it is impossible for a business to make cogent decisions regarding future operations.
Accounting for business is in the midst of a revolution which is seeing an increasing number of firms (particularly SMEs) turning to computerised and online accounting methods. Here, we take a closer look at this change and the impact it can have on modern business.
Security
One of the most important elements of handling sensitive data such as business accounts is security. In terms of both privacy and safety, computerised accounting far surpasses manual accounting. Accounting online allows for sensitive data to be properly encrypted, ensuring that access is only permitted to the proper parties. Online data can also be effectively backed up and hosted in a variety of locations. This means that in the event of an office fire or a software attack, the accounts will remain both intact and secure.
Access
Employees are increasingly looking to work from remote locations. Online accounting packages allow those with the necessary privileges to access key information and accounts and to effect changes from anywhere in the world.
These changes can then be viewed by other parties such as the business accountants, or other managers. The ability to transmit data freely to those that you choose has considerable implications for the ease of accounting.
Simplicity
With manual accounts, in depth training and qualification is an absolute necessity. This limits the accessibility of key figures to accountants and places a huge amount of pressure upon the continued communications between business leaders and accountants.
Accounting software will typically be designed to allow those with less traditional training to access and understand their own accounts. This is great news for the self employed, according to a Telegraph article, as well as business leaders.
Trained accountants can use more advanced releases of the software. This allows both parties to be provided with up to date information about the company’s accounts upon which they can work in their respective ways. Ultimately, this provides accounts teams with more independence, while business leaders can ensure they are fully aware of their business’s financial situation at all times.
This was posted in Bdaily's Members' News section by Peter Rivers .
Enjoy the read? Get Bdaily delivered.
Sign up to receive our popular morning National email for free.