online accounting software

Online accounting software






Many software companies offer online accounting solutions. These online accounting software have a special feature: they are not installed on the computer equipment of a company but hosted directly by the publisher on servers and made available to users via an Internet connection. Compta-Facile presents here the online accounting software around four axes: its definition, its advantages, its disadvantages as well as the criteria of choice.

online accounting software

What is online accounting software?
By definition and as the name suggests, online accounting software is primarily accounting software. It is therefore an accounting management solution with many features. First of all, it keeps the accounts of a company that is obliged to submit one. This management solution will collect all the accounting entries previously entered and centralize them in order to arrive at the presentation of summary statements (often called "financial statements" and composed of a balance sheet, an income statement and an appendix).

Some accounting software goes even further in terms of functionality. They can help to prepare tax declarations (VAT, TVS, CFE, CVAE ...) and be composed of complementary modules allowing, for example, to integrate the commercial management (it will then be possible to publish quotes, to make invoices and manage transactions with third parties), the management of fixed assets (calculation and integration of depreciation allowances as well as capital gains or losses) and even the management of payroll (preparation of pay slips, calculation of expenses social, etc.). In this case, the term "online management solution" will be preferred.

Accounting software is generally only useful for companies that choose to hold all or part of their accounting. Online solutions are, in most cases, suitable for small and medium-sized businesses.

For more information about this: Is it mandatory to have an accounting software? What is online accounting software?

What are the benefits of online accounting software?
An accounting software, in the broad sense of the term that is to say it is installed in a single station (or on a network) or accessible via the Internet (online), has many advantages. In the first place, it saves time and reduces the risk of error. Indeed, if the company sets it correctly beforehand and uses all the tools at its disposal to optimize the process of accounting entry (creation of input guides, frames, automatic lettering under certain conditions, etc.), it will save a lot of time.

Moreover, if it places it at the center of its organization, that is to say that it effectively represents the information dissemination medium, the accounting software will ensure the uniqueness of the information ( all information will come from the latter, which limits the probability of making mistakes, having outdated information or duplicates).

Finally, the accounting software is a management tool of a company. It answers the question "where is the company? As well as the question "where does the company go? ". The answers to these questions are provided by the compilation of accounts summarizing the present (what the company owns and what it owes, as well as the results of operations carried out during a financial year - these are the annual accounts composed of a balance sheet, a profit and loss account and an appendix or any intermediate accounting situation established at the discretion of the company) or the future (these are provisional accounts generally known as the business plan or financial forecast). And it is the accounting software that serves as the basis for the construction of these elements.

Compared with "traditional" accounting software, the online accounting software has the undeniable advantage of being accessible everywhere, as long as the user has an Internet connection; even though standard accounting software will only be available on a single workstation or on a private network. In addition, the price paid generally includes a fairly broad range of services, including: automatic updating (to ensure compliance of the software with tax, social or accounting provisions), telephone support, etc. Finally, when the company works with an accountant, the online accounting software can overcome the difficulties generated by a remote relationship (the accountant can retrieve data from his client directly over the Internet, without having to to move or to request exports by email).

For more information about this: the benefits of online accounting software.

What are the disadvantages of an online accounting software?
Online accounting software is unfortunately not without drawbacks and it is important to know them.

First of all, in terms of cost, an accounting software is generally more expensive for a company than a "classic" accounting software. However, it is necessary to qualify these remarks given the additional services it offers. In some cases, the integration of existing data (or conversely, the export of data when the company has chosen to change accounting software) is billed as additional.

Then, in terms of adaptability, it is generally little (and not even at all) flexible. No additional development specific to the company is made possible. In other words, the online accounting software is standardized for all user companies (even if it offers a setting specific to each of them as the ability to customize their chart of accounts for example).

Finally, the online accounting software may present a risk of security or confidentiality with regard to the data it contains. Indeed, since the latter are stored on servers owned by the software publisher or rented by it, they are subject to a risk of piracy. This disadvantage must be put into perspective because if the company owns these data on its own computer equipment, it is it that is subject to this risk (it must therefore protect itself accordingly).

For more information about this: the disadvantages of an online accounting software.

How to choose an online accounting software?
Before choosing your online accounting software, you need to take a special step and start by reviewing the real and precise needs of the company when it comes to using the software: does it want to keep its accounts only? ? Does she want to manage the establishment of her invoices and follow the rules of her clients? Does it own fixed assets that require special monitoring? How many users will have access to it? Are there any limits on the volume of accounting entries? Does the company carry out an activity requiring the use of a specialized solution? This last point is essential because, indeed, generalist online accounting software is not suitable for all professions. Sometimes it is necessary to use specialized software in the business sector of the company (they are called "business solutions"). This is particularly the case of construction companies who must monitor the progress of their projects or liberal professions for which only cash accounting can be held. Successful selection of your online accounting software requires comprehensive preparation.

To overcome the disadvantages presented above, it is generally advisable to opt for online accounting software offered by a publisher recognized in this area. This will make it possible to ensure the durability of the software, to offer quality data security guarantees, to have competent technical teams at all times and to benefit from real-time updates. The best-known software publishers in this field are: Sage One, Sky, Cegid, EBP ...

Finally, the last tip for choosing an accounting software is to compare. It is necessary to compare the online accounting software on the market and, if proposed by the publishers, to test it in order to base its own opinion on the subject.

For more information about this: choose an online accounting software.

Conclusion: an online accounting software is an accounting software that is hosted directly by its publisher and is accessible by a company via an Internet connection. It has advantages and disadvantages and you should be careful about its selection process.