How do you choose an online accounting application?

There are several ways of managing your accounts. For example, you can keep all your receipts and simply hand them over to your accountant, or you can manage your own accounts using an online or offline accounting program. What accounting software application should you choose? Opt for accounting software that is both user-friendly and complies with all the security and privacy requirements. Consult your bookkeeper or accountant, if you have one, as the two of you work on your accounts together. Online accounting software is cloud-based; this means your bookkeeper can keep track of what you are doing at any time. This makes it easy for you to distribute the duties. 

Key considerations when choosing an online accounting software application: 

• Online accounting software 

• Accounting app 

• Features and options 

• PEPPOL network 

• Switching 

• Costs 

• Instruction videos 

Online accounting software 

You pay for offline accounting software applications only once and subsequently pay for updates. If you choose an online application, you will pay for access and use through a subscription. The software is always up-to-date, and the fact that you work in the cloud means that you can access your data at any time through your phone, laptop, or PC. Peter Potters of Informer Online says: “Many SME owners still use offline accounting software applications, where you install the software locally on your computer. This is a bit dated, and virtually all accounting software applications available on the market now are online, not least because of the many benefits they offer.” 

Electronic accounting

You will find few business owners who still keep their receipts in an old shoebox, but there is nothing wrong with using hardcopy accounts; that is, Excel spreadsheets, or self-designed accounting software based on open-source accounting software. The only condition is that you meet the  legal requirements. 

Electronic accounting provides certain advantages when professionalising your business. For example, Excel spreadsheets do not enable you to monitor accounts payable. You create invoices separately in Word. Since you do this manually, you are likely to make mistakes, for example entering the wrong invoice number. Online accounting software allows you to work more quickly and efficiently, and there is no need to enter all the data manually.

Accounting app 

You are looking for user-friendly accounting software. Most online accounting applications include an app. You can use this accounting app to take pictures of receipts and incoming invoices. These are then automatically recorded in the system. There are also accounting applications available that allow you to communicate with a chatbot through WhatsApp. This enables you to upload invoices or check your balance. 

Features and options 

Electronic billing (e-billing) can be integrated into accounting software. In some cases, e-billing is included in a separate application which you can buy individually. Check which features, options, and modules are important for your business. For example: timekeeping, stock management, and a cashier system. Note that additional features and options could increase your subscription fees. 

PEPPOL network 

PEPPOL (Pan-European Public Procurement On-Line) is a secure, GDPR-proof network in the European Union. You can link your accounting software to the PEPPOL network, so that you will be able to send electronic bills to international customers. Access to PEPPOL is subject to a strict vetting process. If your accounts and your customer’s account are registered in PEPPOL, your e-invoice will immediately be imported into the recipient’s accounting application. This prevents invoices from getting lost. “PEPPOL has made phantom invoices a thing of the past,” Potters says. Governments must accept e-invoices received through PEPPOL. 

Switching 

Do you want to switch to another accounting application? Your financial data will be transferred using XML Auditfile, while your bank details are transferred through an automatic bank link. Potters: “Changing accounting applications is easy. Many business owners decide to do this on 1 January, but you can do it at any time of the year. You can enter the opening balance at any time, or, alternatively, collect everything and enter it all in one go, which you can just as easily do in July.” 

Costs

The subscription fees for online accounting programs are roughly between €10 and €75 per month. The price depends on the date of your business’s establishment, legal structure, number of employees, and the features and options provided by the software. 

Instruction videos 

Software providers supply instruction videos, demos, or webinars when you acquire an accounting application, so you will soon get the hang of the new program.