Finger in the air?  Thing of the past!                                                                                                                                                                                                                                          

                                                                                                                

Your’re probably well versed with online banking by now but what about online accounting? Local firm PurpleAccounts has been at the forefront of online accountancy since they introduced the concept to the Isle of Man in early 2007.

Helen Parker, co-owner of PurpleAccounts gives us an impartial overview of what it’s all about and how it can benefit all businesses regardless of size.


It’s worth explaining what we mean by online accountancy. The DIY software that you pay for and ‘leaves you to it’ is a No No.  Business owners simply don’t have the time or know what to do with the information.

The optimum use of online accountancy is when it is used in conjunction with an accountancy professional and is provided at no extra cost to the business owner.  This merges online (often bespoke) accounting software with access to the full range of accounting services as found on your typical high street. This rather clever combination uses all the skills and knowledge of accountants with easy to use software and can be a business owners’ best friend.

It has brought the client/accountant relationship kicking and screaming into the 21st century. Information is dynamically updated regularly online and means potential problems can be highlighted and communicated earlier to both client and accountant. The two can log in at the same time 24/7 anywhere with an internet connection to work closely together, so the personal touch is not lost – but actually enhanced.

Looking back 10-15 years when the banks introduced online banking there was initially a slow uptake. This was followed by a period of rapid growth as people overcame security and privacy concerns and public awareness was increased. Other sectors which have traditionally had a high street presence have also seen rapid growth online such as insurance services, financial services and travel services. A similar pattern is likely to occur with accountancy services, however the key to success in this sector will be how well the personal and professional relationships between business and accountant are developed and how the information is acted upon.

The market for online accountancy is increasing as more and more people become aware of the service and how it can help in the running of their business. The key benefits of using an online service are clearly about accessibility to up to date information.  The traditional method of only producing year end information in this commercial and competitive world is simply too late.  Business owners and managers, including contractors and SMEs (small to medium enterprises), now have access to the type of sophisticated business reporting and analysis that was traditionally only available to larger companies.

Certain businesses will benefit more than others from an online service and this largely depends on the business's underlying culture. Having the service is one thing, but to benefit from the service, a close relationship still needs be developed with the accountant and records regularly maintained by the business.

It is likely that the number of ‘new age’ online accountants will rise considerably over the next 3-5 years as practices realise they must compete in the technological society. While the expense of developing in-house systems will delay most entering the arena, the introduction of off-the-shelf systems will revolutionise the accountancy sector as a whole. Indeed, several online accountants are now introducing licensing opportunities to other accountancy practices.

For this to be a success for both client and accountant, the mistakes of other industries must be taken on board. Automated telephone answering systems and outsourced call centres is something to be avoided. The trick is to keep it simple, personable and accessible.  Using new technology wherever possible but always remembering the key to success is development and nurturing of relationships with customers.

PurpleAccounts can arrange a no obligation ‘testdrive’ of their accountancy software by contacting them on 01624 618002, enquiries@purpleaccounts.com

 

CASE STUDY:

Case Study – How it works for me - Tom Martin – Managing Director of Miracles

Miracles’ experience demonstrates that online accounting can deliver speed, transparency, flexibility and increased communication, resulting in new ways of growing the business and developing more profitable income streams.

Just over a year ago I felt Miracles accounting needed to be brought up to date, it was a huge decision to make and one that I did not make lightly. I was aware of Purple Accounts new on line system because David Parker had already been in to meet with me to discuss a mutually beneficial business relationship. At that time I was very impressed with David’s professional approach so he was the first and (as it turned out) only person I contacted.

 

After a brief demonstration of the online system I was sold, the package is easy and intuitive to use and the reporting features were just what I was looking for and would prove very valuable when making decisions about the business and of course with dealings with my bank. I was also pleasantly surprised with the cost.  Moving to Purple has meant a cost saving for my business of £1000 a month in accountancy charges. Yet I have so much more information available to me, when and where I want it, in a format that I understand and can relate to.

 

Each member of staff  that use’s the system have a different log in and different levels of access which means I can have a Junior member of staff entering amounts for the invoices but they cannot see confidential figures relating to the profit and Loss etc.

 

As I was so impressed with Purple Accounts when I started Freedom Care & Support at Home, I did not hesitate to sign up for the basic Limited Company online Accounts package. I have found that I use much more of the online systems features for Freedom Care, for example I do not have an invoicing system in place like I have at Miracles, and thankfully the invoice generating feature on Purple Soft is so easy to use! It means I stay on top of my billing and as a result the companies’ cash flow is stable.

 

If you have a basic grasp of book keeping and accounts then I am confident that not only would you be able to use PurpleSoft, you would be able to save time when invoicing and paying bills etc so you can focus on the important things like generating sales or bookings.

 

ENDS