Cloud accounting systems are revolutionary. How do I know? Well, my accounting practice has been using the cloud for a number of years, and we have shared this passion with many of our business clients. All of our clients now use cloud accounting systems too. We have seen firsthand how the cloud accounting systems impact our business clients’ lives. How? The cloud solution has reduced or eliminated redundant, time-consuming work that—let’s face it—is the bane of most businesses.
Mostly, cloud accounting allows greater access to real-time data, which increases engagement with businesses financials and assists in making decisions. You have probably seen or heard yourself about all the cloud accounting systems that are now available for you to utilise in your business. I would like to share with you some of the reasons clients and accountants love working in the cloud:
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Why you need cloud accounting ?
Access any time, any place
If you own a mobile device, chances are you want to be able to do things on the go. As such, the face of business ‘on the road’ is changing. A cloud accounting system does exactly this.
Imagine being able to enter sales quotes into your system in real time or raising sales invoices on the spot using a mobile device Similarly, perhaps you are on a plane, and you fancy checking your financial situation to see whether you are on budget for the quarter. For advance uses such as this, Xero provides a solution even when you have no Internet connection.
The files remains in real time, all the time.
when you are working on the file,your accountant or bookkeeper can be working on the file at the same time. This allows the accountant to interact with you in real time and assist you with any questions about data entry or what the financials are reflecting. It encourages better communication and use of your accountant, who is your trusted adviser.
It offers mobility, flexibility and a better lifestyle.
You can see your business account balances, outstanding invoices, overall cash position and much more from anywhere 24/7 as long as you can access an internet connection. These days, you can run your business from an iPad or similar tablet device and mobile phone as most cloud accounting systems have apps you can download to the device. This translates into a more flexible lifestyle while running your business. You can have certainty over the financials and banking even when you are not physically present in your business. So go on—call that travel agent now.
Use a broader suite of secure apps.
Cloud applications such as Xero and not only provide access to information and documents from any device, but they also integrate with other cloud-based tools. As soon as a small business starts using one cloud-based accounting technology, it’s easy to extract and leverage data across a number of different platforms and reduce time spent on manual data entry.
Small-business owners start businesses because of passion for what they do -- not to spend time managing paperwork. Migrating traditional accounting workflows to cloud-based solutions enables small-business owners to reduce time spent managing information and improve overall operational efficiency.
Business owners can make better decisions
Old-fashioned software that requires you to manually do your own bookkeeping puts your business at a disadvantage because your accounting data is lagging behind reality. A modern business needs information that is real time and always up to date. How else can you make effective business decisions? Now you can access your live accounting data from anywhere, from any device with an internet connection—it’s total mobility.
5 Reasons To Choose Cloud Accounting Over Traditional Accounting
1. Convenient Collaboration
Accounting is not one-man army sort of arena. It requires a complete detailing of all the financial transactions taking place in the entire business. So, multiple users come into action to keep the accounting data error-free and updated. As the traditional methods of accounting involve humongous restrictions with locations and user-accessibility, the cloud brings a simple solution.
You can add any number of users and work with them in the realtime to pace up the operations. What’s more beneficial is controlling the user permissions, which simply take a few clicks. So, you can define which files are meant for which users.
2. Tailor-made Accounting for You
The size of your business largely determines the accounting needs for you. As per the futuristic developments of the business, such needs may change as well. With cloud accounting, you have plans available to suit the requirement of your business. When the requirements change, you can switch between the plans. With traditional accounting, most of us are aware of the local system restrictions.
Accounting requirements for the different businesses vary significantly. A logistic business has different accounting needs than a bookstore. Therefore, generalized accounting software may help a number of operations. But complete automation with the accounting comes with additional solutions, such as – ease of printing, barcode scanning, inventory management, etc. Cloud accounting ensures that all requisite solutions can easily be integrated together without demanding specifications of the local device.
3. Easy on the Pocket
Managing the finances demands some expenses. Cloud makes its best effort at keeping such expenses. First and foremost importance of the cloud computing is that it does not demand any local infrastructure other than a user-end device. So, a chunk of on time investment of hardware purchase is saved.
The cost of maintenance of hardware that would have been required with the traditional methods is also escaped. Moreover, most of the cloud vendors provide reliable support, so you can cut cost on the IT team expenses. Another pocket-friendly benefit of the cloud is pay-as-you, which allows the user to pay precisely for the resources used; no money wastage.
4. Data Remains in Safe Hands
No matter how convenient accounting is on the cloud, if it is not secure you cannot agree on keeping your accounting data there. After all accounting data is most crucial information of your business. Most novices with the cloud computing consider that they are storing the data on servers of a third-party that can access their data willing. However, cloud computing is not that straightforward.
Reliable hosting providers follow proper encryption technology to ensure only the authentic user is able to access the data. With the automatic data backup features in effect, even a disastrous event and unwanted change will not be able to take the data away from you.
5. Avails Latest & Best Features
Technology is an ever improving concept. Software updates, hardware renovations, etc. are part and parcels of the technology. With them arrives more innovative, secure and simplified ways of accounting. This is the reason for which experts recommend keeping the updated technology. With the traditional accounting, upgrading software is not always possible as the limitations of local machine do not go well with the updates.
Cloud, being independent of the local machine, offers the latest and most upgraded features for accounting. Not only it carries all the features of the desktop software, but it also adds more features to it. It adds more of security, productivity, accessibility, convenience, and independence to do more with accounting.