People are resistant to change. Anything new is always daunting and we often find a million reasons to not change. When the first lockdown came into being, nobody was very happy about having to hold meetings and lectures on new virtual platforms they had never heard of before. They were resistant to the change. Of course, nobody had much of a choice if life was to go on, so people migrated to virtual conferencing platforms quickly, even if they did so begrudgingly. Today, these platforms have been accepted into the social fabric: people are learning new workouts and socializing using virtual conferencing platforms.
Online accounting software is a positive change that has already benefited many companies. Other companies are still in their resistant-to-change phase. If you have been hearing good things about accounting software, but are also apprehensive because of your worries, or because of rumored downsides to using it, here are:
5 major online accounting software myths – busted
We’re not just going to clear the air around these misapprehensions but will also attempt to explain how some of these myths came into being
Misapprehension #1: It’s just a con; it does nothing
Online accounting software comes with a receipt scanning feature that captures data from snaps of bills, invoices, and receipts uploaded to it. It also sorts and categorizes data at least according to date and type automatically, or can do so based on categorisation rules set up by the user. All your financial data is centralized. The system delivers data insights via an accounting dashboard. It also gives you a heads-up on tax laws so that you can plan pricing and customer engagement before the laws come into being.
However, if you don’t upload snaps of bills receipts, and invoices, never access the accounting dashboard and never utilize the insights, the software cannot do much. That’s like buying a treadmill, never walking on it, and then grumbling that it does not work. Online accounting software must be used for it to deliver results.
Also, avoid entirely free software because most useful features will be placed behind a paywall. Free accounting software brings us to our next point.
Misapprehension #2: Your data will be sold
Most online accounting software service providers have a reputation to keep and will secure your data with firewalls to guard against intrusion. They even have an IT security team ensuring that data is adequately safeguarded. They certainly are not going to sell your data because it will cost them paying customers.
On the other hand, where does a free accounting software service provider get their income from? They either have to bombard the user with ads or sell their data.
Misapprehension #3: It is expensive and better for large companies
You can get a popular and highly functional, feature-rich online accounting software like Dext at just GBP 20 per month for 5 login IDs. For just GBP 40, you get 20 login IDs. Online accounting software is very affordable.
Accounting software does get cheaper as you add more accounts, but it is not expensive, to begin with.
If you are a startup managing your accounts or trying to keep your accounts team lean even as your transaction volume increases, online accounting software can help you maintain accounting costs. Your data will also be error-free and well-organized.
Misapprehension #4: The company will sack the accountant if they get online accounting software
Well, this isn’t a “robots will take all the humans’ jobs” kind of situation. Online accounting software can help with data entry and data sorting. The data reconciliation, tax filing, and balance sheets still need human intelligence and human input.
The accountant’s job certainly becomes easier and the company need not hire a new accountant every time transaction volume notches up to a new milestone. Data flows seamlessly from the company’s business bank account to its books, meaning you can run with your existing team.
Misapprehension # 5 It is very challenging to use
Accounting software is built to be used by anyone and is therefore highly intuitive. When something is intuitive, it means that you will automatically know which button to press for a given function. Smartphones are built like that – that’s why you don’t need anyone to teach you how to use them. You simply get used to it, even if the user interface is different from your previous phone.
That said, online accounting software also comes with a free demo, for any team members who are anxious about learning the new software.
This misgiving might have stemmed from the fact that some organizations with haphazard data might need to reformat data for it to fit into the software correctly. However look at it this way: you would need to clean up your data someday, and at least this way data management going ahead will be automated.
Conclusion: Online accounting software does represent a change and although it is natural to have apprehensions, companies should get a hands-on feel of it to know what it’s really about. Visit https://dext.com/uk to get your free trial today.