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One of the key themes that we see with smaller businesses, is their tendency to opt for manual accounting. This is the traditional route that many businesses chose to process, record, and present the financial situation of the business. Usually, it involves registers, vouchers, and account books. Although manual accounting is the traditional route, this does not necessarily mean that it is the best option for your business. Let’s discuss this further…

The Benefits of Manual Accounting:

Although manual accounting is not necessarily something we would recommend, it does have a few perks. This includes the fact that there is no delay due to power or internet outages and there is no risk of personal information being hacked online.

The Disadvantages of Manual Accounting:

Most business owners are exactly that, business owners. Accountancy is an extremely complicated field and if you are not trained, you could be making it harder for yourself. 

The process is also extremely time-consuming as you might be having to rifle through bunches of paper to find the correct information. 

The final downside is that due to the entire process being down to a human being, human error can be a big problem. Whether this be entering information incorrectly or accidentally swapping figures, there is an increased risk of human error compared to cloud accounting. 

Why Should I Use Cloud Accounting?

Cloud accounting has been a huge breakthrough in financial management with the drawbacks of traditional accounting finally being eliminated. With several different features, cloud accounting software appeals to businesses of all sizes and has found its way onto the ‘must haves’ for many businesses, even ours! If you are looking for the essential accountancy tools for your business, you can read our other blog here.

Here are some of the main positives of utilising cloud accounting to handle your finances:

 

 

Ultimately, the way the world is moving forwards, manual accounting will become a thing of the past and businesses will need to move towards a more digital method of working. Therefore, get ahead of the game and reach out for advice when you need it. If you do feel you need some support, you can contact us here to see how we can help.

 

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