e-conomic accounting software saves 78p in every £1

18 November 2008: During an economic crisis, accountants spend even more time advising clients on ways in which to keep operating costs low. One source of unnecessary expense that might be overlooked is their accounting software. Price comparisons show that small to medium sized 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), and the savings for accountants dealing with multiple clients can be even higher.

For many SMEs, the saving in software costs associated with switching to online accounting is almost £600 in the first year. However, if the 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) then savings could easily reach thousands of pounds per year. Then, in addition, there are further savings to be made from the increased efficiency gained from accountant and client being able to work more closely in an online system.

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-based SME that uses e-conomic, said: “People often wrongly fear change. It took a little while for our bookkeeper and accountant to accept an online system, but now they love it! It’s simple to use, there’s no formal training needed and the service has been great. Using e-conomic saves so much time both for us and our accountant. Neither of us needs to spend time chasing the other for information and relying on snail mail. Instead our accounts are always up to date and available at anytime.”

e-conomic costs as little as £13.50 per month, which covers all the core modules needed by small to medium sized 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.

With e-conomic, there are savings to be made for accountants too – they receive access to their clients’ accounts entirely free of charge, which can improve efficiency and increase revenues. Hans Peter Jensen, Auditor and Supervisor at City Revision, said: “The best thing about online accounting is that it facilitates a better way of working with our clients. It means that we can take on more clients and it improves the staff to client ratio.”

Mark Davies concluded: “Small business owners and their accountants should really be working on the same software package. While some of our competitors see accountant licenses as a means of generating extra revenue, logging in to e-conomic is free for accountancy practices. 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 increased efficiencies available from 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 comparison chart or for more information please contact:

Anna Fraser
Spotlight Communications
Tel: 07958 380568
Email: anna@spotlightcomms.co.uk

e-conomic hotline: +44 (0)8456 800 471
For free trial click here

NOTES TO EDITORS
e-conomic is an independent, self-funded company with offices in the UK, Denmark, Sweden and Norway. e-conomic is used by over 15,000 companies and 3,000 accountants/bookkeepers, from sole practitioners to some of the largest accounting firms in the world including KPMG and Ernst & Young. Its SME clients range from sole proprietors to businesses employing over 100 staff. Its UK offices are in Reading, Berkshire.