Technological advances have enabled businesses and managers to consolidate data and information online. Through these practices, business has been born and some have failed. There are many examples of business that have failed due to not updating and following the trend but there are much more that have succeeded and exemplify what it is to be a ‘connected’ business. By connected, what is meant is that businesses have incorporated technology and equipment to simplify outdated processes. For example, compare writing reports with pen and paper to something like compiling a document with MS Word. Online accounting could be interpreted as using a web-based bookkeeping service or having an external company that does your accounting off-site and provides the service over the internet. Both have their respective pros and cons. Mainly, with consideration to web-based programmes, Pros are control and accessibility, while cons range from ease of use and slow response time to potential security threats and information theft. On the other hand, having an external accounting company to control and maintain business records reinforces pros on levels such as cost, simplicity, security and remote access to name a few; with cons orientated around Web access.
Analysing more in depth on small businesses and how they structure themselves, allows for in-depth understanding of which method would suit which business type more effectively. The structure typically involves a person doing one or multiple of the functions that are marketing, finance, sales distribution etc. All of which have their own time and monetary constraints. Considering the financial restrictions on such businesses puts into perspective the level of constraint that managers face when making such decisions. Considering the time and money involved in hiring and training staff the business processes, appropriate monthly payments to an external accounting firm would be the best option almost every time.