Online Accounting: What Is It and What Are the Benefits?

For novice individual entrepreneurs, accounting can be a daunting task. The fear of making mistakes, which could lead to fines and other problems, is very real. Outsourcing accounting tasks may seem like an attractive option, but hiring an external accountant is often too expensive for those just starting out in business.

However, accounting can be done independently—correctly, efficiently, and without risks. How can this be achieved? One of the modern solutions is online accounting.

What is Online Accounting for Individual Entrepreneurs?

Online accounting is a free service that allows you to manage your company’s bookkeeping in real-time. This solution is specifically designed for individual entrepreneurs. It is ideal for business owners who want to handle accounting tasks on their own, understand the intricacies, and maintain control over their organization’s finances.

These online services are developed especially for users without professional accounting knowledge. This has led to several distinctive features of these platforms:

• They offer a simple and intuitive interface that is easy to navigate;
• They include a set of built-in options. For instance, you don’t need to study all existing tax systems—just select your tax regime, and the system will automatically load the required reporting forms;
• The autofill option reduces the likelihood of errors. You only need to enter information once, and it will be automatically "pulled" for subsequent entries;
• The ability to review your reports before submitting them ensures that the system will detect any errors (in calculations, formatting, etc.) and provide recommendations for correction;
• Notifications can be set up to ensure you don't miss deadlines for filing reports or paying taxes.

In addition, these services include user guides where you can clarify information and study step-by-step instructions for those starting accounting from scratch. They also offer tips and examples for filling out documents, as well as the latest news in the field of accounting for individual entrepreneurs.

Five Benefits of Online Accounting

The ease of use of these services is not their only advantage. Working with cloud-based accounting also offers the following benefits:

1. Convenience

Access to an online accounting service requires only an internet connection, meaning you can work with documents on any device and from any location—whether in the office, at home, or even on a business trip.

Many operations in cloud services are automated. There aren't many manual tasks involved—for example, the entrepreneur needs to confirm a transaction before it is processed. Entrepreneurs also manually add information about their accounts in other banks (which is necessary for correct tax calculations) and create and submit tax returns.

2. Functionality

The functionality of most platforms extends beyond just filling out tax returns. You have access to all data related to personnel management, payroll projects, insurance contributions, and more. For example, personnel management allows you to monitor vacation approvals, employee terminations, salary adjustments, bonus payments, sick leave payouts, and more.

You can track the movement of funds in your account, control settlements with counterparties, and more. You can also generate reports—such as expense reports, which are important for optimizing business operations.

Creating payment orders, processing payments, preparing invoices and acts, and creating document templates are just a few of the tasks that cloud accounting services enable you to handle.

3. Reliability

Cloud-based accounting services use the same security systems as online banking. They guarantee the safety of your funds and the confidentiality of personal data.

The services operate through a secure connection between the user’s computer and the server, made possible by an SSL certificate. Data is encrypted and stored in the cloud or on the developer’s secure servers.

4. Relevance

Accounting is a field that changes dynamically. Reporting forms and the rules for filling them out are regularly updated, new documents appear, and tax and social contribution rates change. Studying these issues independently takes time, but online accounting services quickly integrate all these changes.

5. Cost-effectiveness

Many online accounting applications for individual entrepreneurs are available for free. Some paid plans offer expanded features and often include access to educational materials. Even using a paid plan usually costs a small amount.

Online Accounting from Bank CenterCredit

Individual entrepreneurs operating under a simplified taxation system can connect to an online accounting service through the bcc business app for iOS and Android or through the internet banking system. The service integrates with your bank accounts, significantly simplifying bookkeeping. Note that access to the system is free, which helps reduce the financial burden on your business.

The system allows you to automate accounting processes without involving an external accountant. The options are regularly updated, so you’ll always be aware of any changes.

With online accounting, you can easily and safely:

• Automatically calculate and pay taxes for employees and your business
• Generate the necessary tax reports
• Receive reminders about tax payment deadlines so that nothing is overlooked
• Hire and dismiss employees online
• Manage annual leave and sick leave for employees
• Prepare the tax report form FNO 910
• Easily manage your accounting using only your smartphone

If you have any questions, you can contact the experienced specialists in the technical support department. The bank guarantees the security of client personal data.

To learn more about the cloud-based solution, contact Bank CenterCredit representatives by phone at 605, fill out an online application on the website, or write via WhatsApp or Telegram.

This article has been translated from its original language using neural network-based translation technology.