Mobile Accounting for Small Businesses: What Should You Look For?

Have you ever thought about carrying your business accounting on your smartphone? Just like sending a message or making a call, managing accounts can also become so easy. Well, that's not a “thought” anymore; mobile accounting software has become reality. 

Mobile accounting is a real feature now, especially handy for small business owners as they rarely sit at their desk all day. It happens that at the same time, a customer wants an invoice, a payment needs to be checked, an employee has recorded an expense, and you are not in the office. These situations are actually quite common for small businesses, and waiting until you're back at your desk isn't always practical. 

This is where mobile bookkeeping can help you complete essential financial tasks without any delay. However, not all software works the same. Here's what to look for before choosing one.

What is mobile accounting?

Mobile accounting means using a smartphone or tablet to access accounting information and perform selected financial tasks without being tied to a desktop computer or office. 

This is especially helpful for a small business where work doesn't always happen behind a desk. The owner may have to meet customers outside the office, travel between different branches, purchase supplies on the go, or manage employees at different locations. An accounting software mobile app can bring some of the functions you normally use on a computer to a mobile device. 

Depending on the software, these may include:

• Creating and sharing invoices
• Recording business expenses
• Checking payments and outstanding amounts
• Viewing financial information
• Managing customer or supplier records
• Recording transactions
• Checking business reports
• Monitoring cash flow

However, it is essential to note that mobile accounting does not mean you move entire accounting onto a phone. Rather, the correct approach is to only manage select tasks on the phone that you need to perform while away from your desktop.

Which accounting tasks should work on mobile?

Mobile accounting software is most useful when it actually handles the tasks with small turnaround time that may otherwise have to wait until you're back at a computer.

• Invoicing

Being able to create and send an invoice immediately after a sale can save time and reduce the chance of forgetting to bill a customer later.

• Expense recording

Business expenses don't necessarily happen at the office. Employees may purchase supplies while travelling or incur expenses during a client visit. Recording them on the spot means fewer receipts to sort through later.

• Payment tracking

A quick look at outstanding customer payments can tell you which invoices are overdue and where follow-up may be needed.

• Transaction recording

For businesses where transactions happen throughout the day, entering them closer to when they occur can help keep records current.

• Quick business checks

Sometimes you don't need a detailed report. You simply want to know how sales are doing, whether a payment has arrived, or how much is outstanding. Mobile access can make these quick checks easier.

The best business accounting app focuses mainly on increasing the speed and accessibility of certain tasks and not replicating everything that a desktop can do.

What should you look for in a mobile accounting app?

Real-time financial visibility

For a business owner, having access to financial information is useful only when the information reflects what is actually happening in the business. Real-time visibility helps turn mobile accounting into a tool that can assist business decisions.

For instance, if you're travelling to meet a supplier and want to check whether there are any pending payments. Or you're about to buy materials and want to check what your bank balance is. With instant access to such financial information, it becomes easier to check numbers without having to open old spreadsheets or stress over your memory. Available on mobile, you can check the numbers instead of relying on memory, old spreadsheets, or a message from someone at the office.

Look for an accounting app for small businesses that makes it easy to:

• Check recent transactions
• View sales information
• Monitor receivables and payables
• Review cash flow
• Check expenses
• Access relevant business reports

This doesn't mean every figure has to update instantly in every situation. What matters is that the information you see is current enough to support the decisions you're making.

Multi-user access

If you're the only person handling your accounts, accounting software on mobile is relatively straightforward. But small businesses often have several people involved in financial tasks, even if they don't have a large finance department.

An employee may record expenses. A sales team member may create invoices. An accountant may review transactions. The owner may approve payments and monitor reports. Giving all of them the same level of access isn't ideal.

• Assign access by role

Each user should have access to the functions they need for their work. Someone responsible for recording expenses may not need access to financial reports or approval functions.

• Keep individual logins

Where the accounting system supports multiple users, individual accounts are preferable to shared credentials. They make it easier to manage permissions and determine who has performed a particular action.

• Review access periodically

Employee responsibilities change. Someone may move to another role or leave the business altogether. Their access should be updated accordingly.

TallyPrime can support businesses that need to manage accounting activities across users and locations. It helps teams keep financial work organised while owners remain connected to their business.

Security on mobile

A phone contains a surprising amount of business information, and losing control of the device or login credentials can create unnecessary risk. Mobile accounting software therefore needs security measures alongside convenience.

Here are some basic precautions worth following:

• Use strong passwords: Avoid simple or easily guessed passwords.
• Protect the device: Use a screen lock, PIN, password, or biometric authentication.
• Keep software updated: Install operating system and app updates regularly.
• Avoid sharing credentials: Each authorised user should ideally have their own login.
• Use additional authentication: Enable available authentication measures for added protection.
• Be cautious with public networks: Avoid accessing sensitive financial information through unsecured networks where possible.
• Check app permissions: Understand what access the accounting app requests on your device.
• Remove access when required: If an employee leaves, their accounting access should be revoked promptly.

Security isn't something to consider after choosing a business accounting app. It should be part of the evaluation from the beginning.

Mobile accounting software vs desktop accounting software

A mobile device is convenient, but a desktop computer still has an advantage when you're handling detailed accounting work. The two shouldn't necessarily be treated as competing options.

Internet connectivity and offline access considerations

An accounting app depends heavily on connectivity, so internet access should be part of your evaluation. If your business operates in areas with unreliable connectivity or you frequently travel, this becomes even more important. Before choosing an app, understand what happens when the internet connection drops.

Can you still view previously available information? Can transactions be recorded and synced later? Are certain functions completely dependent on an active connection?

The answers will vary between accounting solutions, so don't assume that every mobile bookkeeping app handles offline work in the same way. Consider your typical working environment too.

Mobile accounting app evaluation checklist

Before choosing a cloud accounting solution, look beyond whether it simply has a mobile app. The real question is whether it fits the way your business operates.

• Check the essential features

Make a list of the tasks you expect to perform from your phone or tablet. Look for support for the functions that matter most, such as invoicing, expense recording, payment tracking, and financial reporting.

• Check the user experience

A feature is of little use if it takes too many steps to find or use. The app should be easy for the people who will actually use it, including employees who aren't accounting specialists.

• Check access and permissions

Find out whether you can create individual users and assign appropriate permissions. This becomes particularly important as your business grows.

• Check security

Look at available authentication options, user controls, device security requirements, and how access can be removed when someone leaves the business.

• Check connectivity requirements

Understand which features require an internet connection and whether any functionality is available when connectivity is limited.

• Check how mobile and desktop work together

Your mobile experience shouldn't feel disconnected from the rest of your accounting workflow. Consider how easily you can move between mobile and desktop work and whether information remains consistent across both.

• Check whether it can grow with you

Your needs today may be different from your needs two years from now. Consider whether the accounting solution can accommodate additional users, locations, transactions, and reporting requirements as the business expands.

A short checklist before choosing a bookkeeping app can save you from discovering later that the feature you rely on most isn't available when you need it.