A recent survey…found that more than 50 percent of small business owners spend less than 10 hours a month on accounting work. While 10 hours a month may be all a small business owner has time for, it may not be enough to sustain their business. According to the U.S. Bureau of Labor Statistics, only about half of small businesses survive through their first five years. With nearly half of the small business spending less than 10 hours on accounting per month, devoting more attention to accounting could be a prudent allocation of resources to increase the chances of success. Many business owners don’t necessarily understand the meaning of the numbers that are fueling their companies. Having a better understanding of accounting can help small business owners better manage their businesses.
Chandra Bhansali, Ph.D. How Cloud-Based Accounting Can Help Smaller Businesses. Smart Business, 2/4/16.
The article goes on to discuss the benefits of working with an accountant year-round. I encourage you to read the entire article if you’re not yet convinced. The article also states that small business owners should work with accountants who use cloud-based accounting software, because those are the only accounting applications that allow accountants (or bookkeepers) and their clients to “share data in real time.”
The main objection to cloud-based accounting applications such as QuickBooks Online (QBO) and Xero is usually security. And that is a valid concern. For that reason, you should only use such an application if it uses bank-level, military-grade, 256-bit encryption. Both
Contact me today to learn more about what cloud-based accounting applications can do for your business.