Online accounting software is becoming increasingly attractive to many SMEs, as the downturn makes careful business planning more important than ever.
When times get tough, all too often it’s the little guys who are first to get the sharp end of the stick. While many small stores steel themselves for a declining retail spend, many other SMEs face downstream business challenges of a different kind. Already this year, there has been controversy over large UK retailer Boots extending their payment terms. Some small suppliers say they will now have to wait up to 100 days for their invoices to be paid by the large chain.
For a small firm with limited cash flow, waiting on large invoices like this could be extremely costly or fatal. As a consequence, many small businesses are looking to use innovative business tools like web-based accounting software for help. One of the best ways for businesspeople to protect themselves against scenarios like this is to have great accounting systems to facilitate really accurate financial planning. More and more small and medium sized businesses are switching to web-based accounting software as a way to stay on top of their financial situation and business planning.
A web-based accounting system differs from traditional accounting systems because the software and data are stored securely on the web - not just on one laptop or PC. Online accounting offers a number of advantages over offline systems. The very fact of being able to view your accounts online is an advantage, making collaborative working across multiple sites far easier, and allowing you to check your finances any time, anywhere you need (even from a mobile).
A leading online bookkeeping system like Xero has a very intuitive interface and simple dashboard presentation that makes it incredibly easy for business owners to review their projected cash flow, expenses and so forth. And because web-based accounting software is located online and is paid for on a monthly basis, there is no large upfront cost. As the margin for error narrows, web-based accounting software is one tool which will help SMEs survive the recession.
Xero’s web-based accounting software is easy for business owners to use while still providing enough detail for accountants. By managing their accounts online, businesses create a single set of up-to-date accounts and financial information accessible from any web browser. To learn more about moving to Xero online bookkeeping visit www.xero.com.
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