It is said that online accountants are the future of small and medium-sized business accounting. However, in Canada, most of the accountants prefer operating from brick and mortar offices but online accountants have also started gaining recognition in this field with every passing day. They use modern and advanced technology to increase work efficiency and to add convenience to their clients in accounting services in Mississauga.
Accountants are known to be conservative and slow to adopt changes. But technology spares no one. Accountants who fail to progress with time will be left behind in the race. Preparing financial statements with papers is something which is next to impossible these days. The introduction of cloud accounting software has made online accounting possible and more convenient.
Let’s have a look at the difference between online accountants and traditional accountants
1. Difference in terms of services offered
When it comes to services, both online and traditional accountants offer the same services which include
- Preparation of financial statement
- Advisory services
- Corporate and personal tax returns
- Review and audit of financial statement
- Bookkeeping and accounting services
- Accounting system set up and training
These common services are provided by most accountants but it does not mean these services are offered by every accounting firm. If you are searching for a professional accountant, you can simply check his or her services page or directly ask whether they cover all these services or not.
2. Office location
Traditional accountants operate from their offices. These offices have small cubicles for lower grade employees and small offices for senior accountants and managers.
On the other hand, online accountants usually have either no office or a small office or co-working space to meet up with clients. They usually work from home or from a co-working space.
3. Technology used
Traditional accountants tend to use a variety of technologies. Some have taken the help of cloud-based, paperless accounting systems whereas some have locked themselves up in the decade-long software and cabinets full of paper.
Cloud-based, paperless technology is the base of every online accounting firm. The main objective of such online firms is to make clients’ accounting procedures easy and convenient.
In the case of traditional accounting firms, meetings are initiated at a boardroom in the accountant’s office.
Here, meetings are usually held through video conferencing software such as Zoom, Skype or Google Hangouts. Video conferences offer accountants the scope to share their screens which allows them to explain financial reports and tax returns.
5. Fee structure
Traditional accountants still rely on the age-old hourly billing method. Each accountant has his own specific service charge and they always keep a track of their work timings. You will be billed based on the time span of your project completion.
Online accounting firms offer a flat fee structure based on the type of service you need. This is more advantageous than the variable fee structure as it reduces the burden of being charged for every minute.
6. Location of the client base
Traditional accounting firm
The clients of traditional accounting firms are usually located within the city as they need to visit the office for meetings.
Online accounting firm
Unlike the clients of traditional accounting firms, clients here have no geographical boundary. This is because the work is entirely done on cloud-based technology. Usually, online accounting firms have clients, scattered across the country.
Now when you have a better understanding of the differentiating features of traditional and online firms Billah and Associates Inc. accounting Mississauga it will be easier for you to decide which method will be beneficial for your business.