Cloud computing is hardware and data storage in secure centers which users can access through any internet-connected device. The benefits of cloud accounting software are similar to those of using Google Drive or Dropbox. Here are five reasons your business should embrace a cloud accounting solution.
Below are seven reasons why you should adopt cloud-based accounting apps.
You can access cloud apps and data from anywhere at any time on any device with an internet connection. The ability to work remotely means you can travel freely to gain new clients, employ teleworkers, and save time on your commute. Cloud accounting has enabled many small business owners to move away from a physical office to a virtual model, saving thousands of dollars on rent.
In addition, remote access allows you to create a seamless partnership with outsourced accounting resources without surrendering control of your books. Should you choose to turn to third-party assistance to better manage your finances without the steep investment that accompanies in-house pros, your cloud-based program makes it simple to pass on the reins.
With a large volume of receipts and transactions, handling accounting for a fast-growing business can be a significant undertaking, particularly when you’re busy cultivating your business. Cloud-based accounting software makes this Herculean task less daunting through the connected app ecosystem that enables you to find the right tool to solve your specific business problems, while pushing important accounting related data into the accounting system.
You are able to integrate expense management tools such as Receipt Bank which automates a majority of manual data entry using Optical Character Recognition technology. This is especially great if you are finding yourself drowning in credit card receipts. Once pushed into the accounting system, the receipt is maintained in the cloud, acting as your digital filing cabinet so that you can throw away the receipt.
DATA IN REAL TIME
One of the major disadvantages of a traditional desktop-based accountancy software package is that to share information with your accountant, or even other members of your team, the files would need to be downloaded and either printed off or emailed on. These files may be correct at the time of download, but will soon become out of date which can lead to numerous discrepancies and errors. However with cloud accounting you can give access to whomever you choose (and are usually able to choose exactly what level of access they have) and they will then be able to work with the most up to date information.
For all business owners that we speak to, cash management is top of mind. If you have not yet modernized your invoicing process and you are still handling invoicing by hand or in a system that is not integrated with your accounting system, it is time to make a change. Without an integrated invoicing system, you will find that either you or your bookkeeper needs to duplicate invoices into the accounting system. Very importantly, you might not have a pulse on your accounts receivable which directly impacts cash flow.
Cloud-based accounting software can help you collect the cash you’re owed through automated invoice reminders. Furthermore, you can automate invoicing for recurring transactions so that you can put some or all of your invoicing on auto-pilot.
Paper records get lost, misplaced, or damaged quite easily, ruining the integrity of your business data. With a cloud-based system, you have the opportunity to go completely paperless, putting all of your important information at your fingertips at all times. Gone are the days of shuffling through files and searching in vain for old reports; instead, everything you need can be accessed or generated in just a few clicks.
By going paperless, you can also save money for your startup during those lean early days, reducing the cash spent on toner, paper, and filing space in favor of more valuable resources instrumental to your success.
Most cloud accountancy providers offer incredibly high levels of sophisticated data security which is usually either compliant with, or exceeds, the Payment Card Industry Data Security Standard. This stringent measure ensures that your data is stored completely securely and you also don’t have to worry about losing any of your data as this is all securely backed up in the cloud – rather than sitting on a potentially vulnerable stand-alone machine. You can also transmit data back and forth using the highest available level of encryption to secure data from eavesdroppers.
CONNECTS EASILY WITH YOUR BOOKKEEPING COMPANY
Many accountants specialise in cloud accounting and can work directly with your cloud account. This means that rather than having to provide them with your books, ensuring that you send the correct versions of everything that they need, your accountant can simply log into your account and get going.
If you are looking for a quicker, easier and cheaper way to handle your finances then cloud accounting could be the way forward. Book-Rite can then take care of the rest. Contact us to let us and let us help you focus back on your business.
Making the right choices for your growing business isn’t always easy. However, the right software can make all the difference. By selecting a cloud-based option, you can support your startup from anywhere, enhancing your processes and improving your chances of success.