Cloud based accountancy packages - what it means for your e-commerce website

The birth of online accounts

Not too long ago there was little choice in terms of accounts packages for your business. Well, there was Sage and, er.... not much else. Whilst a lot of this was driven by accountants, the truth is there was actually just little choice.

As with most of the computing world, the cloud computing era has opened up many more possibilities. Kashflow and Xero are making strides into the market - and not just with new starters. Established companies with years of experience of offline accounts are starting to make a move.

Advantages of online accounts soon outstrip the disadvantages

So why online? The advantages are countless, but the obvious ones are:

• Access from anywhere, not just the office
• Delivery through a browser as opposed to an installed application
• Regular updates from the provider ensures that your business is up to date with legislation
• No hassle with backup or security

Disadvantages, well just one really - if you lose internet connection then you can't access your accounts. But frankly, that’s probably the least of your worries.

So what does this mean for my website?

As well as day-to-day running of your accounts, online accounts services offer a huge technological advantage over 'on-premise' software.

Namely, most online accounts packages can be directly integrated with your e-commerce site. So, imagine, an order is placed on your website, an account is automatically created (or updated) in your accounts package, an invoice is raised and its all sent of and finalised. No need to duplicate information, your ledgers and balances are up to date and your computer in the office didn't even need to be on.

Want to setup a credit account, and share the information regardless if they buy online or over the phone? No problem. Real time stock tracking? Easy.

Not that this wasn't possible with traditional accounts software, but it required a lot more development. Also, as the software was probably on-premise, it also required your infrastructure internally to be bullet proof as otherwise your website may be accessible.

So, the next time your are nearing your end-of-year accounts, have a look at some alternatives to your accounts package and you might be suprised what your own accountant thinks of this new trend.