Archive for September, 2009
How to deliver Online Bookkeeping Services
Posted by vinkash in accountants and bookkeepers, small-business, startup on September 23, 2009
(Summarized version of a white paper published on a partner website - Suitesonline.com, Inc)
Why is it important?
Online bookkeeping is nothing new. There are products and services available that tackle different aspects of the solution. For businesses it promises to save time and money, and deliver several soft advantages including efficiency, faster actionable information, and agility.
Scanning of documents, remote work, and risks associated with sending important documents online pose adoption problems. But those who overcome these problems can reap rich rewards. The phenomenal growth in the number of tech-savvy companies drives demand for this service. Similar to email, a steady adoption of online bookkeeping is inevitable. As an accounting or bookkeeping firm, how do you plan to tap into this large lucrative market?
How does it work?
Online bookkeeping services can be delivered online if three main functions can be done entirely online:
1. Sharing of source documents
This includes receipts, bills, checks, account statements, reports, etc. to be transmitted to the service provider. There are several ways to capture electronic images of source documents:
- Inexpensive scanners like the Fujitsu ScanSnap can be used by clients to quickly scan documents.
- Smaller documents like receipts can be captured by a cellphone camera (resolutions of > 1.5 MP is recommended). ScanR is a cool app that helps you scan, copy and fax from your cellphone.
- Services like Shoeboxed and Pixily will digitize all your documents for you if you simply mail it in.
2. Performing bookkeeping
This includes creating transactions, printing checks, bank reconciliation, generating reports, etc. Several applications are available for small business to do this.
- Specialized applications for invoicing are available – Freshbooks and Blinksale are the better ones.
- Xero, Quickbooks online, and Sidomac are some applications that provide online bookkeeping functionality that includes bank reconciliation and check printing.
3. Communication and process
Especially while working online it is easy to lose control of the work being done. Communication is very important to be able to hold the team together and focus on the next set of tasks that needs to be done. For effective online collaboration contextual information exchange and processes are very important. At present there is no good tool, save for SIDOMAC that offers a good framework for online bookkeeping services delivery.
Online bookkeeping also has the following disadvantages:
1. It involves an extra step – that of scanning and uploading documents.
2. The documents need to be indexed and somehow correlated to transactions to be useful in any way.
Should I use it?
Whether you are a good candidate for online bookkeeping services depends upon how clearly the work is split between you and your bookkeeper. If what your bookkeeper does can be easily done using the tools listed above then go for it. If it entails transmitting documents, exchange of information and time critical information then make sure to find an all encompassing solution to your problem that includes strong processes and a competent and experienced online bookkeeping services company.
5 Great Business Plan Resources
Posted by vinkash in small-business, startup on September 10, 2009
DocSnaps has made it into the finals of the Pan IIT Business Plan competition to be held in Chicago in October. In writing a business plan for investment it is always good to access the most recent and pertinent resources for your industry. Here are 5 great resources to help you get started.
1. Guy’s business plan advice – Why write a business plan? It is important to answer this question first before putting pen to paper.
2. Sequoia Capital’s business plan outline – This provides an outline of what makes a business sustainable and the company fundable. It also includes an outline of what to include in the business plan.
3. Market research – A general idea of the size of the market is essential to get started. This is a great starting point with statistics and numbers to give you a general idea of the market. Other resources for qualitative research – BizShark, Crunchbase.
4. Competitive Strategy – A viable business is all about competing. If the idea is good then it safe to assume that somebody is already working on it. And to be successful a strategy has to be devised that makes you more successful than the other. Micheal Porter a university professor at Harward Business School helps you to analyze competition and create a successful strategy. Without a great strategy even the best business idea will fail.
5. Financials Basics – It is important to understand the basics of startup finance and take into account all startup expenses. A business might be profitable but for investors to be interested they would want a healthy return on investment for their risk. Your financial plan should provide general trends and ratios which helps answer these questions.
Biz plan competitions are always wrong – According to Seth Godin pundits are always wrong at predicting the future. So do not worry if your biz plan does not win any competitions.
DocSnaps wins Biz Plan Competition
Posted by vinkash in Guest Bloggers on September 4, 2009
DocSnaps was named runners up at the IIT Roorkee Heritage Fund business plan competition 2009. The objective of the competition is to “foster entrepreneurship among IIT Roorkee alums, and to provide an integrative learning experience for the community”.
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Now onto the Pan IIT competition in Chicago in October!