Keeping operating costs low is never more important than during an economic crisis – more than 80 per cent of small businesses said their costs had increased in the last year . One source of unnecessary expense that might be overlooked is the accounting. Price comparisons show that small businesses can save up to 78p in every £1 spent on traditional accounting software packages - such as Sage, Quickbooks and IRIS – by converting to online accounting software (see end for price comparison table).
For many small businesses the saving associated with switching to online accounting is almost £600 in the first year. However, if total cost of ownership of the software is also included (i.e. the cost of a server to host the software, upgrades, back ups and maintenance)
Mark Davies, managing director of e-conomic, commented: “Almost everyone has been affected either directly or indirectly by the credit crunch. Looking for a better deal makes good sense, especially when your software licence is up for renewal. This doesn’t mean you have to settle for less functionality or fewer features; our software is comparable, if not better, in this respect too.
“Understandably, many people are reticent to switch providers because they think it will absorb time and energy that they don’t have. The beauty of online accounting, or ‘software as a service’ as it is often called, is that it doesn’t need to be installed on a company server and it’s very easy to get started.”
Online accounting software is hosted remotely and accessed via a secure login through a web browser. This means that there are no problems or costs associated with implementation, maintenance or backups. In addition, upgrades are continually added to the system so client and accountant are always working on the most up-to-date version. Mark Davies continued: “The design of our software means it’s easy to use without the need for training, and there is unlimited access to e-conomic’s support team when required.”
David Wall, managing director of LogBuy, a Buckinghamshire-
e-conomic costs as little as £13.50 per month, which covers all the core modules needed by businesses – general ledger, accounts payable, accounts receivable and electronic invoicing – as well as a number of innovative time-saving features such as automated bank reconciliation and direct integration with Microsoft Excel. Additional modules include stock management, project accounting and scanning.
Mark Davies concluded: “Small business owners and their accountants should really be working on the same software package, so the cost of software for the accountant needs to be taken into account. Many of our competitors will charge the accountant as well, whereas with e-conomic it is entirely free. This means that a small business can work in harmony with their accountant without worrying about any extra cost and the accountant will also benefit from the efficiencies of working online.”
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Typical total cost of ownership:
• cost of a basic server/workstation to host software = £500
• cost of back up system – presumably already in place and being carried out daily and properly
• cost of outsourced IT support approx £300 per month (£3600 per year)
• annual software upgrades £200 - £500 per year
For a price comparionchart or for more information, please contact:
Anna Fraser
Spotlight Communications
Tel: 07958 380568
Notes to editors:
e-conomic (www.e-conomic.co.uk)
