How Does Online Accounting Work?
Author: Russell SmithJanuary 30, 2020
Online accountants have grown in popularity over the past few years as more and more businesses start to adapt to the digital era and integrate web-based solutions into their current processes. If you aren’t familiar with the practice, you might find yourself asking, how exactly does online accounting work, and is something you, as a business owner, should consider?
In this blog, we explain how RS Accountancy online services use systems like cloud accounting and accounting software to support small businesses all over the country.
What Is Online Accounting?
Online accountancy, sometimes known as cloud accounting, is the practice of managing your business accounts and finances online by working with a remote access accountancy firm. This differs from buying and using your own online accounting software because you don’t do the work yourself. All you need is an internet connection and you can connect with accountants, submit information to them and have them do everything, from tax to payroll.
These two practices can be combined if you like. You can use online accounting software to do your own accounts and then work with professional accountants to check things like accuracy.
How Does Online Accounting Work?
To understand how online accountancy works, we first have to understand how traditional accounting works.
When you work with an accountant near you, you get together, discuss your accountancy needs, provide them with your business finance details and accounts access, and from there, the accountant can do any number of things depending on what it is you need. You can work with them to submit tax returns, monitor cash flow, advise on decisions to enhance profits, audit financial data and so on.
There are lots of tasks a local accountant can perform.
When you work with online accountants, they can still perform all these tasks. However, instead of meeting in a physical space and handing over paper files, you simply manage everything remotely. You have phone and email conversations. You send them digital files and online access to your accounts. Often, the accountancy practice will also have online accounting software, or cloud accounting software, which you can connect to and that allows you to closely collaborate on your financial health and development.
Now we’re in the 2020s, this makes complete sense. Everything a modern business does is accessible via digital channels, which means online accessibility is incredibly simple. When you can do everything online, why wouldn’t you? This is not actually a bad question.
Is there really a benefit to how online accountants work over traditional accounting services?
What Are The Benefits of the Way Online Accounting Works?
Online accountancy works to support small businesses through several practices that enhance the workflow of modern companies in the United Kingdom. These include:
Better Accessibility & Flexibility
More and more business owners are taking to remote working. The ability to move around and adapt your work environment is a powerful tool for many enterprises across the country. When you work to such loose parameters, you want an accountancy service to match. What’s the point in having a modern work environment and supplementing it with restrictive services? When you work with online accountants, you can often access accounting software and cloud accounting solutions from anywhere. You can also connect to your accountants remotely. This means the practice aligns with the flexible way you do business.
A Wider Choice
The best business decisions are all about making the right choices. Your company’s success is built on making the best investments, choosing the right support services and working with others who are going to benefit you. When you are restricted to local opportunities, your choices become limited and the right option may not exist. By working with an online accountant, your choice suddenly opens up. You can find the online accountant service that works best for your business.
Accountancy firms that have moved into online accounting practices, such as our team here at RS Accountancy, can reduce overheads by putting more resources into cost-effective technology like cloud accounting and accounting software, with less money spent on physical and expensive assets. We’re also able to move our headquarters away from high-cost, high-traffic areas because our clients aren’t only walk-ins. We can do our job from more affordable office space. The result is that costs for us come down and as a result, we can provide business owners in the United Kingdom with more competitive prices and options. For small businesses, in particular, this is very important, as it can make accounting affordable where previously it wasn’t an option.
What Kind of Business Does Online Accounting Work For?
Any business can benefit from online accounting services if it suits its goals, although, at RS Accountancy, we recommend this kind of accountant work primarily to small and medium-sized businesses. For these kinds of companies, there is often no need for an in-house accountant, yet the support of a professional financial advisor can be vital for success and growth. Working with an online accountant helps you manage your money on your terms and keeps business accounting affordable, without having to concern yourself with high-commitment contracts or hiring additional staff.
Start Working with Online Accountants Today!
You’ve got an internet connection. You couldn’t be reading this without one, so why not take the next step in your accounting and work with online accountants like RS Accountancy? We use cloud technology, online accounting software and other tools in conjunction with our decades of experience in the traditional accountant business to provide you with everything your business needs. Get in touch with our team today to find out more, no matter where in the United Kingdom you are.
Russell Smith is an award-winning accountant and founder of RS Accountancy. With over a decade of experience running his company, he has worked with countless small businesses just like yours, helping them grow profits and manage their finances. Russell is also a prolific financial writer, having contributed to such publications as The Guardian, The Telegraph and The Daily Mail.