Advantages of Online Bookkeeping
Advantages

1. Detailed Recording of Transactions

A thorough, dedicated online bookkeeper will always keep detailed records up to date. This complete recording will not only assist you in supervising your business accounts, but will also be of great assistance once you need your financial statements, financials reports or once your company is audited as this process will be much faster and much cheaper.

2. Always Compliance with the Law

A good bookkeeper will always comply with the latest legal regulations & compliances and will make sure all your accounts and books are up to date with any recent legal changes. Because the bookkeeper holds himself accountable for any work that they do, you can rely on them to clear any non-compliances. This saves time and effort for the bookkeeper, which in turn saves cost for the company.

3. Easier to Plan

Once you have a detailed recording of transactions and a better overview of the company's accounts, it is much easier to plan and predict the future. When you are confident in your data, you can solve issues quickly and you can grab any opportunities that present themselves, without having to fear miscalculations in the accessible data. Thanks to the overview of profit and loss evolutions in the balance sheet, you will be able to know exactly what to do and how much time you have to do it.

4. Instant Financial Reporting

Even though you will need to wait for the accountant or the auditor to finish their reports to conclude official financial statements, you will always have an updated balance sheet to inquire about the current state of the accounts. You will be able to present these data to any bankers, investors, partners, interested party, providing additional confidence both in your work as a manager and in the company's health as a whole.

5. Support for Banks and Investors

That confidence will definitely improve business relations with your investors and shareholders. Additionally, banks will be more willing to provide you with more affordable business loans once they can see how your company is thriving. Any time an investor is interested in the health of your company, you can just show the current detailed financial reports and prove that the company is making major success. 

6. Better Tax Prediction

While the Income Tax Department will demand an official financial statement from your company for the purpose of taxation, you will be able to predict the outcome more accurately if you have access to detailed balance sheets over time. With them, you can keep an eye out for trends in your company's business and be more confident in the amount of taxes you'll be expected to pay at the end of the fiscal year.

7. Faster Business Response Time

When you have real-time information about the state of your accounts, you will be able to react quickly to any changes that happen to the market or to your business. You will know the extent of your resources and current expenses, providing you with accurate insight: is it the right time to act?

8. Faster Financial Analysis

As bookkeeping tends to be less expensive than accounting, it’s helpful to know that by having detailed records you will shorten the length of time an accountant will spend on analyzing your accounts and creating financial statements. This will not only diminish the cost of accounting, but will also give you more time to act upon the information provided by the analysis and change any strategies you might have planned.

9. Easier Audits

Producing financial statements is much easier and faster when you have a better data-recording model. You will have a much easier time conducting an audit than you would if your accounts are messy, disorganized or even slightly outdated. Any auditor you employ will just need to access the detailed balance sheets and compare them with the statements to know exactly what was done. They can produce their report quickly and any mistakes will float to the surface.

Advantages of Online Bookkeeping
Maniraj Anantham 3 December, 2022
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