Online Accounting was established by a group of passionate and energetic professionals to provide a world-class online learning experience for students pursuing professional accountancy programs in Sri Lanka. They want to challenge the traditional classroom-based learning approach, which has become outdated with the advancement of technology, lifestyle, and socioeconomic factors. In order to provide students with a unique learning experience, Online Accounting has developed several innovative tools and resources that make it easy to complete the course.
Double-Entry Accounting
Double-Entry online accounting is a good way to keep track of your business’ finances. It is useful for preparing a budget, checking for tax compliance, and evaluating your business’ performance. If you do not have a lot of accounting experience, you can try out FreshBooks, which is an easy online accounting solution for small businesses.
Double-entry bookkeeping is an accounting practice that records each transaction in two accounts: the debts and the assets. For example, when a business takes out a loan of $5,000, it debits the cash account and credits the outstanding debt account. This way, it increases its cash and decreases its debt. The information provided in the accounts is essential for financial planning. The lack of detailed information can lead to a business getting into trouble. Although double-entry accounting is more complicated than single-entry bookkeeping, it can provide a more detailed accounting system.
Double-Entry online accounting software is available for both small and large businesses. Intuit, a software developer, sells the product to millions of users around the world. Its primary purpose is to help small businesses keep their books organized and avoid errors. The software also allows for customization according to the needs of a business.
Receipt Management
One of the most efficient ways to automate bookkeeping and receipt management is with a cloud-based app. These apps save receipt data permanently in the cloud, allowing you to access it anywhere. One of these programs, Binary, offers an integrated bookkeeping solution that automates the entire bookkeeping process. This program also allows you to upload receipt photos and view them on any computer.
In a traditional system, accountants manually verify and validate expenses. They also have to wait for reimbursement, which can affect productivity. With an online receipt management system, managers and finance departments get personalized reminders. This solution also helps the environment, as paper receipts are not recyclable. The printing process uses chemicals.
Managing paper receipts requires a large amount of time. Depending on the company size, this process can take weeks or even months. A traditional receipt management process also leaves gaps for fraud. However, with online receipt management, your accountant can easily access your receipts and minimize the risk of fraudulent activity.
Inventory Management
Inventory management is a key element of any business, but the process can be complicated if you don’t have the proper tools. Inventory levels are crucial to the income statement, balance sheet, and cost of sales. Having a systematic way to track the quantities of your products can help identify problems before they become a problem. If you want to avoid having to call up a sales representative and ask them to reorder a product, you can use inventory management software.
To get the best inventory management software, you should look for a system that is easy to set up and use. Ideally, the software should integrate with your other business tools. It should also connect with your stock management system to create a consistent inventory management process across sales channels. It should also be compatible with your existing software and hardware.
Effective inventory control has a positive impact on your business, from customer satisfaction to profitability. An inventory management system will help you track and manage your inventory in real-time, enabling you to better plan for the future. It will also inform you of any growth opportunities in your business and help you make better decisions.
Time Tracking
A good time tracking system will keep track of employee comings and goings, update project time lines in project-tracking tools, and exchange paycheck information with payroll software. It can also allow employees to enter expense reports that are processed as part of a standard payroll run. Time tracking is essential for workforce planning and can help companies forecast their future projects. Using a time tracking system can save businesses 3% in payroll costs and increase billable hours by 4%.
QuickBooks online offers a time-tracking module that helps you track time and expenses. It has features such as the ability to create recurring expenses and to take snapshots of receipts. The software also helps you analyze financial performance trends. These insights can help you make sound business decisions and improve your money situation. This software can even let you track employee time, as it allows managers to manually log the number of hours they worked and specify the time they started working.
Time tracking software can be deployed on premise or in the cloud. An online time tracking system can be accessed using a Web browser, while on-premise systems must be installed on the company’s servers and run directly on the user’s machine. If remote access is important, an online time tracking system may be a better option for your business. Online systems are usually priced on an annual or monthly subscription basis.
Payroll
Payroll accounting requires the use of liability and expense accounts. A liability is money owed to others, and an expense is money you spend on your business. A liability becomes a debt when it is not paid, such as when workers’ compensation premiums are not paid. Online accounting solutions can help you manage your payroll efficiently and effectively.
A good payroll service should be simple to use and responsive to any problems. It should also be easy to find and build reports. This is a key factor, as specialized data can make it difficult to find information. The best online payroll services should also help you avoid trouble with the tax authorities. These troubles can lead to costly penalties, which can cripple your business.
Payroll is an important part of maintaining a healthy and thriving company. It is crucial to pay employees on time, as late payments can impact employee morale. Employees may question your financial stability and, in the worst cases, they might underperform. Your payroll is the beating heart of your company and making sure it’s processed correctly will help keep your heart pumping.
Third-Party Integrations
Whether you are running an eCommerce business or a small to medium-sized business, third-party integrations in online accounting can make your life easier and streamline your financial reports. For example, if you are using QuickBooks, this integration will automatically update your inventory and other financial information for you. The integration is simple and typically requires just a few clicks to authorize.
With Receipt Bank, you don’t have to enter receipt data into multiple systems. It is integrated with many of the top cloud accounting applications, is mobile-compatible, and provides customizable access for everyone on your team. Another great third-party integration is Expensify, which automates expense reporting and adds receipt details to expense reports. Expensify is available for both desktop and mobile use and integrates with most of the major accounting platforms.
Scalability
Scalability refers to a business’ ability to expand while preserving its structure. This term has been used in both business and financial contexts. As technology improves, scalability has grown in importance. Businesses can now easily scale without sacrificing structure, despite growing demands and competitors. A scalable system is also capable of handling an increased number of users and customers.
The scalability of an accounting system is a key factor for businesses to consider. It is important to select a solution that can handle the increasing complexity of your organization and still maintain the same level of accuracy. If you plan to grow in the future, you’ll need to consider a scalable solution to grow with you.
A scalable system is able to increase its revenue without affecting its fixed costs. Its ability to expand in proportion to its fixed costs gives it tremendous growth opportunities.
Security
Online accounting security is an important aspect of ensuring the integrity of your data. The software that you use to manage your finances is responsible for protecting your data, and it is also important to back up your data regularly. Many people do not, and this can compromise the integrity of your data. Fortunately, most accounting software comes with built-in security measures that help you keep your data safe.
While cloud-based accounting tools are more secure than traditional on-premises software, they still pose a certain level of risk. This is because your data is stored on the cloud, which is vulnerable to hacking and malfunctions. While cloud-based systems are more reliable against these threats, there are some specific features that you should look for.
Intuit, the maker of QuickBooks desktop accounting software, has invested in secure hardware and software. Their data center uses multiple layers of protection, including closed-circuit video surveillance, backup power, and flood and smoke alarm systems. Moreover, cloud accounting providers also back up their data in multiple locations, including physical and virtual servers.
