Online Accounting Services for Small Businesses
Every business is required to keep accurate and updated financial records for purposes of tax compliance. Records relating to income tax, GST, payroll and other business transactions must be kept either on paper or electronically. Maintaining a regular team of accountants can be expensive which is why online accounting services for small business are necessary and practical.
Functions of online accounting services
Record keeping: Maintaining accurate books of accounts, journals, ledgers and other records are necessary for a business owner to monitor the actual movement of funds at any given period. Bookkeepers and accountants have the educational background and training for accurate record keeping. With Internet technology, specialists like bookkeepers are able to perform accounting and bookkeeping tasks offsite while reducing costs for the business owner.
Bank reconciliations: Managing cash flow necessarily entails knowing their inflow and outflow through bank reconciliations. Poring through details of a bank account can be confusing and time-consuming unless one hires a bookkeeper. Through electronic data transfer and advanced Internet technology, it is now possible for a small business to retain the services of a reputable bookkeeper without the usual costs associated with hiring one.
Financial analysis: Analyzing data collected by an online accounting service is important for any business that wants to measure the results of its marketing efforts, sales campaigns, cost-cutting measures and other business activities. Graphs, charts, tables and ratios all paint a clearer picture of a business’s true state of finances. These are often used to analyze strategy, refine or modify it. Financial statements in specific forms such as the profit and loss ratio, income statement and balance sheets are common requirements for obtaining additional financing or credit. Accounting services for small business can readily provide these important statements as part of its record-keeping role.
Payroll services: Payments to employees, superannuation contributions and other disbursements are regular activities that must be closely monitored by an online accounting system. This type of service facilitates periodic reviews of previous payroll activities and ensures accurate computations. Related services include sending email notifications to employees and preparing cheques or payments.
Other features offered by accounting services small business include preparation of end of year accounts, BAS preparation and lodgement. Advanced accounting systems now provide these services either online or remotely through an Internet connection. These are the latest and most cutting edge systems showcasing superior data security, user friendly features, easy collaboration and hassle-free upgrades.