Docsnaps

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.

(Summarized version of a white paper published on a partner website - Suitesonline.com, Inc)