My Bookkeeping Online Blog

The last few years has seen a number of online bookkeeping solutions launch solely in the online arena. These include Xero, Kashflow, Free Agent Central and, of course, My Bookkeeping Online.

These new products are challenging the traditional software houses –Sage and QuickBooks -both of whom are yet to launch an online solution.

So, which is the better for micro businesses? Particularly those that are one man bands, or have no in-house bookkeeping skills?

Here is a quick summary of the pros and cons:

Offline products are installed onto your computer. The principal advantages are:

1. There is the extra feeling of security from knowing that your data is stored on your own computer.
2. Offline products have been around for longer and are generally owned by the big brands. They therefore tend to offer more sophisticated and more technically advanced solutions.

Online products are accessed over the internet. The principal advantages are:

1. Both you and your accountant can access the same data at the same time – this is useful for discussing issues, and training.
2. There is no need to worry about paying for versions or upgrades – online upgrades happen automatically.
3. The workload can be split along sensible lines. The business owner does the bits he/she can, and the accountant does the rest.
4. They are well placed to take advantage of other online products, such as the import of bank statements downloaded from online banking.
5. You can work on your books wherever you like. Thus is you are constantly on the move, or tend to do your administration at home rather than the office, for example, then an online product is more practical.

It will be interesting to see how the market develops. The offline products owned by the big brands still dominate the market, but they are seen as complicated and difficult to use for those with no bookkeeping training. Online products are getting a profile in the accounting community, but no one has as yet to make a significant impact. Some are actively taking on the big brands – and I am not sure this is necessarily the way to go.

I firmly believe that the future is online micro business owners. They will value the anytime, any place, anywhere flexibility, and welcome the more fluid relationship with their accountant, whom they will rely on heavily.

What users of this type generally need is a simple bookkeeping solution. My Bookkeeping Online delivers on this above any other, because it has been built to require a very minimum of data, and it has masses on page help, whilst providing a controlled environment that the accountant can rely on. 

Categories:Accountants, Bookkeeping, My Bookkeeping Online, Small Business Help