I get asked more often than I would like to accept, “do I need an online accounting system?” the answer is no you don’t. All I have to say to this is, find me a successful business that does not have one.
My answer to this is, Yes, you do.
This leads onto the next question, Do you need an online accounting system?
Once again my answer to this is, Yes, you do.
But I don’t wanna! You scream as you are stomping your feet.
Honestly, without an accounting system, you will NEVER keep track of anything in your business and will end up overworked, and burnt out and you will close down the business blaming everything except yourself. Oh, and chances are you will be in trouble with the tax man too.
Which system is the best to use?
On my website, www.bcas.co.za, there are a few articles on which one is best but there are 2 common threads to them. 1. is one that you will use. There is no point in having a great looking car in the garage and never using it! And 2. It has to be a “proper” system. By proper, I mean built on accounting principles. Double-entry bookkeeping to be technical. There are many, many systems out there but only a select few are built on these principles. If not, “don’t touch them with a 10-foot barge pole”! A basic rule of thumb here is, if it is free, stay away.
Now for the second “I don’t wanna”, does it have to be online? Well, no, BUT…
I am not saying it has to be but it makes your life significantly easier if it is. Further to that, without an online accounting system, your business will grow to a certain point and then plateau off. it will plateau because of the administrative burden it creates for your staff.
Please don’t say anything about security and my private data etc…etc because that is no longer an issue. One accounting system has bank-level security levels, so they are taking it seriously. They supply huge multi-national companies which if it was not secure would never use it and it would land up in court.
Good and Bad
Online systems have their pros and cons just like any other system but the biggest reason to use an online system is the ability to do anything from any computer (or phone) from anywhere that has an internet connection. The great thing about accounting and accounting systems is the basic principles are the same, no matter which country you are in.
Without an online system, if something that urgent comes up, you have to wait until you get to the office or until your accountant is available to be able to action the remedy for it. Bragging here is not applicable because it’s true. I helped a client in the car park of a hospital on my laptop in the car whilst waiting for my parents. On the pone, I did it there and then. I helped the same client whilst sitting alongside a pool, watching my son at his swimming lesson. Had this not been online, it would have waiting from Friday to Monday morning, too long.
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So, do you really have to?
The short answer is no but in reality if you want to run your business so that it will survive both the test of time and the tax man, then yes you do.
There are too many questions that are asked around this topic and if you want to talk about any of them, contact Bruce on 081 529 5129 or bruce@bcas.co.za from anywhere in the world.