Traditional vs Online Accounting Firms: Which Should Your Business Engage?
All, Finance, Management
July 24, 2023

Whether your company uses traditional or online accounting services, accounting is a crucial aspect that pencils the results and success of the company. These numbers, while not always exciting, helps to steer your company in the right direction with data and analytics.

With the rise of online accounting firms in the market, let’s deep-dive on the differences of online accounting services for small business and traditional accounting methods.


Traditional Accounting Methods

Time is money – when it comes to traditional account methods, many man hours are wasted on keying data into accounting software via a computer. Employees have to get documents authorised and vetted manually, often relying on physical copies before transferring these data into a centralised software system. This process is time-consuming and requires high effort, while also increasing the potential of human errors, leading to discrepancies in numbers.

As accounting software with full features are often very expensive, coupled with its annual maintenance cost and the cost of hiring in-house accountants, makes these old school methods a costly accounting solution. In addition, there is a possibility of data breaches if the device security is weak. Beyond security, data loss is very much another possibility with laptop or machine downtime and server malfunctions. This will affect business productivity, while being a cost-inefficient way to do the numbers.

Accountants engaged to audit your company’s records means there is a need for onsite auditing in your office. As auditing is a long and tedious process, time and effort will be needed to share transaction details and adhering to requests for physical paper documents. These are additional costs to the company.


Online Accounting Services

On the flip side, cloud accounting takes care of all your IT needs easily as data is stored and secured in well-managed data centres and maintained by professionals. One of the key concerns of online accounting services could be a lack of features to perform your company’s diverse accounting tasks. Not to worry, online accounting firms have software that are feature-rich, from invoicing, direct payments, to budgeting. These are tools that every major MNC frequently adopt and now made available to your business.

The online accounting platform also provides greater internal control where you can set access rights to selected employees. As all information and data are stored in the cloud, you can access these data from anywhere at any time, even on your mobile devices, as long as you have an active Internet connection. Your access to real-time data can help to accelerate strategic business decisions, ultimately streamlining processes.

The accounting service is now seamless, as your accountant can now perform their duties without the need to travel or schedule site visits. You can address their questions and queries at any time, allocating your valuable time for higher priority tasks. As all accounting services are done online, you can go paperless and do your part in tackling paper wastage.

The best part of online accounting services for small businesses is its scalability factor – you can pick and choose from a diverse list of industry-leading features for a customised solution that meets your business needs.


New Technologies for a Digitalised World

As we move towards digitalisation, it has become more apparent that online account services like Myco are the way forward for small businesses. Not only there will be cost efficiency, but the time also saved from traditional accounting methods can be optimised for better resource allocation to drive business productivity.

Make the switch from traditional accounting methods to online accounting services for small businesses today! Find out more about our online accounting services here.

Posts Same Category
October 17, 2023

Are Electronic Signatures Legally Binding in Singapore?

An electronic signature is one that allows someone to sign documents digitally as an alternative to using the traditional handwritten method. This serves as a quicker and more convenient method of agreement and saves the trouble and mess with masses of physically printed out documents. In today’s day and age where going digital and online […]
October 17, 2023

How do I Raise Funds? What Avenues are Available to Me? What Are the Different Types of Investors?

Money is the key to any business. Without sufficient funds, it is easy for a business to fall into a downward spiral of negative consequences. The biggest reason for many small startups failing each year stems from the lack of funding or capital, as these are essential in sustaining a business and generating revenue. Hence […]
October 17, 2023

Should I Run My Business as a Sole Proprietor, Partnership or Private Limited?

A sole proprietor business is one that is owned and controlled solely by an individual. It does not provide as a separate legal entity from the owner, and the owner has unlimited liability over the business. This means that the business can sue or be sued in the sole proprietor’s name. The owner is personally […]
October 17, 2023

What are the Roles and Responsibilities of a Company Secretary?

According to the Accounting and Corporate Regulatory Authority (ACRA), it is compulsory for every company to appoint a company secretary within 6 months from its incorporation date, who must be a person locally resident in Singapore. This position in the company cannot be vacant for more than 6 months at any time. A company secretary […]