Online business accounting is a concept about how to improve business by utilise online accounting tools. It is not only limited to online accounting software but also includes others – online business tools and cloud bookkeeping services.
Why accounting can help you to generate more profit?
Profit = Revenue – Cost. Then, how to increase profit can be said in two ways. How to increase revenue and how to decrease costs. To control these critical factors, you firstly need to KNOW how much you already have. For example, do you know how much revenue you made in the last month? How much was the total cost?? Many of business owners don’t know exactly. If you want to increase profit, you must know where you are at. Then, you can improve.
However, we small business owners cannot afford to hire an accountant internally. At the same time, it’s not easy to squeeze tight schedule and make many time slots available for accounting. So what we should do is simplify accounting and execute in an efficient manner. Using mobile, introducing useful online tools and outsourcing some of the process to the others. That’s what we should do to increase profit.
How should online business accounting be implemented?
Then, how can we do this? Firstly, you have to know what are the purposes to do accounting. Firstly, tax and filing with the government. Secondly, managing business (to increase profit). Thirdly, report if you have external shareholders and/or your boss (in my case, my wife).
The first is the most basic. Needless to say. You can find the requirement on ACRA website and IRAS website. The second, main point here, is so called “Management Accounting”. This is for your business. So you can tailor-made online business accounting process as you like. Here’s the typical flow of doing business accounting based on the internet services.
- Online accounting software – recording expenses and sales
- Cloud storage to keep supporting documents such as receipts
- Online discussion tools – to talk with accountants
- Online accounting services – doing bookkeeping and accounting online. relatively faster and cheaper than traditional accounting firms
By making use of these, you can arrange your management accounting efficiently. Don’t invent wheels again and again. Use what are available in the market now.
Let’s do simple online accounting for your business!
All business owners are required to do many things. I’m not exception and am sometimes overwhelmed. Nevertheless, you should do accounting online and enjoy the benefit of doing so. Accounting is not for tax and filing only. It is for improve profitability of your business.