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What is Internet Bookkeeping ?

Jul 20th 2015 at 11:33 PM

The benefits of digital penetration into our every day routine are evolving rapidly. Whether it is the field of commerce and business, health or education, or governance, internet services are used by various entities. The concept of internet bookkeeping is fast changing the ways of managing accounting records for most businesses.

The need for keeping records of commercial business transactions is universal for all businesses, big or small. The records of sales, purchase, invoices, receipts, payrolls, taxes, etc. are to be maintained for both statutory and legal compliances. A few decades back, these records were kept manually by trained bookkeepers or accountants. The records were linked laboriously in voluminous journals and ledgers. Any errors were corrected by carefully erasing the ink or using whiteners. The safekeeping of these voluminous papers for years was another daunting task. The periodic (monthly or quarterly) summaries and financial statements were diligently compiled by the accountants.

The evolution of computers and software programs for business accounting transformed the ways of accounting in the business world. Gone were the days of entering the records manually into the jacketed journals. The software was loaded into the office computer, and the task of bookkeeping became easier and more convenient. However, the changes in computer operating systems, up-gradation of computer hardware and introduction of new software programs posed new challenges for the small business owners. To keep pace with evolving technology, the cost of transition was proving prohibitive for small businesses.

The internet bookkeeping also known as online bookkeeping or cloud computing is becoming one of the most cost-effective ways of keeping the accounting records of your business. All you need is a device with Internet connectivity to access your account information. The bookkeeping work is outsourced to the accountant or agency that specializes in the job. You have to electronically transfer the relevant transactions details to them, and they will do the necessary entries in a proper format.

The commercial contract or agreement with the agency which undertakes to perform the bookkeeping work for your business ensures that they will keep the confidentiality of your business dealings. The scope of their services should be clearly defined and periodic interactions with the agency over Skype or video conference also helps in better collaboration and understanding.

Making payroll for your employees and allied statutory tax liabilities can be effectively done by these agencies. This serves very well for small businesses which employ six or eight people. These firms have adequate experience in the field of accountancy and are conversant of any amendments that take place. This expertise also helps you in keeping proper records and guides you like a professional counsel.

The outsourced internet bookkeeping service professionals help you to reduce your operating costs and save you from purchasing or renewing software licenses, extra computer or space in your office for employing part-time accountant to do the bookkeeping records. The efficiency thus achieved will help your business better organized and more profitable in future.

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