Disadvantages Of Using Small Business Book Keeping App

 

Bookkeeping entails keeping records of a company's financial transactions on sales, purchases, expenses, and payments among other transactions. Through proper bookkeeping, a company can make important financial decisions based on the record in their books of accounts. It is for this reason that small businesses have taken up the use of small business bookkeeping app that assures them of accuracy and cost-effectiveness. The bookkeeping app has benefited small businesses in many ways. As much as the App benefitted small businesses it also came with challenges. Below are some of the disadvantages of small business bookkeeping app.

The first disadvantage of a small business bookkeeping app is that it exposes the business to potential fraud. As small businesses store their daily financial transactions in the app, they become prone to potential fraud and hackers from obtaining and using their financial data. Hackers could use the financial information, for example, employer tax identification, and use it to take loans in the name of the business. Businesses should there come up with ways to protect their financial information at all costs.

The second disadvantage of using a small business bookkeeping app is that the data can easily be lost in case of technical problems. In case the phone goes off certainly or hangs while you are completing year-end data recording all the data disappears forcing you to start over. If you were handling the bookkeeping manually then you'd still have the data with you.

The last disadvantage of the small business bookkeeping app is that there are high chances of keying in the wrong information. Due to the proximity of the digits, one is likely to press a wrong digit unknowingly and not notice because in your mind you pressed the right one.  In a case where the business owner does not recheck the entries, he/she is likely to end up with an inaccurate report.

For more information on the disadvantages of small business bookkeeping app, visit our website at https://kippinitsimple.com/


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