For as long as businesses have been around, keeping the books has been a time-consuming task that occupies a lot of business owners' time. Now, thanks to the internet, that is changing. There are online automated bookkeeping services that will track your expenses and do your bookkeeping for you, with just a little input from time to time. While the main advantage of these programs is that they save you time as a business owner, there are other benefits to consider, too.
1. You don't have to worry about misplacing receipts.
Typically, these programs integrate with your credit card and bank accounts, and every time you spend money, the program logs the purchase. This takes the place of keeping paper receipts for all of your transactions. There is little to no risk of losing record of the transaction, as there is with paper receipts. You can toss those receipts instead of having piles of messy papers all over your desk, and you'll know that your records of purchases are more accurate at the end of the year.
2. You can generate various reports as needed.
You never quite know when you'll be called upon to produce a certain report or document. Your bank may call you one day needing a profit and loss statement, or your accountant may call and ask for a summary from the last month. In the old days, you would have to dedicate an hour or two to sitting down and putting together the needed documents. With automated software, these reports are available at all times of day. You can just click a button or two and print whatever report you need. You can even send it directly via email, which is even easier.
3. Employees need fewer skills to operate the software.
If you were to hire someone to do your bookkeeping the old fashioned way, that person would need to have a pretty detailed knowledge of accounting. It can be tough to find employees with this expertise, and when you have a small business, you can't always afford to hire someone full-time just to do bookkeeping. When you use online automated software to keep your books, any employee with basic computer skills can keep the system going. This enables you to assign this task to someone who has a lot of other duties in the company — not a full-time accountant hired for that purpose.