The following post has been provided with permission from Mike Galarza, Founder/CEO of Entryless. This post, originally posted on the Entryle
ss blog, provides startup founders with the advantages of online accounting systems.
There are several pros to online accounting systems that are obvious. They allow for accounts payable automation with an on-demand accounts payable, and they also virtually eliminate data entry. These things are all great, but one of the biggest advantages of using an online accounting system is the fact that is can save a great deal of money. It does this in many ways, but none so much as the amount it saves in IT costs.
Upgrades and Maintenance
When you use an online accounting system the upgrades and maintenance are performed by the provider. This means you do not have to deal with IT people, or pay them, each time there needs to be a software upgrade or you have an issue with the system. All questions are routed to the provider and they handle it all for you. They can include anything from adding report customization to integrating new departments or accounts.
Flat Rate
With an online accounting program you pay a flat rate each month. This flat rate covers all maintenance, back up, upgrades, and anything else support related. With off line accounting systems these things need to be taken care of either by an internal IT department or by contracting IT workers for the specific situation on a case by case basis. That means a fee for each task they perform, and often they charge hourly, not by task. The fees can add up quickly, while with an online accounting system the monthly subscription covers all of this.
Security
Security issues are handled by the provider as well, meaning you have no need to hire separate IT services or security people to keep an eye on servers. All security matters are handled, again, by the provider at the same monthly rate you pay regardless.
Off-site Access
It is not impossible to grant off-site access with a standard accounting system, but it is difficult and limited. It takes having an IT person go to the offsite location to set up the entire system, and the access is limited to that specific location. Any other locations that need access have to be added separately with a great deal of work required each time.
With an online accounting system access is limited to people, not locations. With the click of a button access can be granted to whoever needs to have it from wherever they can access the internet. This includes coffee shops, other offices, home, and even on mobile devices. Never worry about missing out on information or having disconnected employees again.
When you consider all of the information, it becomes apparent that there really is very little to dislike about online accounting systems. One flat rate gets you all the IT support you need, and that rate is much cheaper in most cases than what it costs to pay internal IT people or contracted IT specialists.
The IT savings combined with equipment, utility, time, and salary savings adds up to make a major case for switching to an online system.
Want to learn more about @entryless? Follow their blog or connect with Mike on Twitter @VikingFreit
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