Most of you already know I am a HUGE fan of cloud accounting and if you still need to be sold on the idea, read on while I give you a quick run-down on all the benefits.
First and foremost, cloud accounting is shaping up as the ONLY way forward for the accounting industry. All of the data you enter and record is hosted online. This differs from older accounting software, which is hosted locally on your own computer’s hard drive.
Cloud accounting software is flexible, faster, more secure and cheaper.
Benefit 1: Flexibility
When using cloud accounting, you can manage your company’s accounts from anywhere you have an internet connection. This makes things way, way, more flexible.
But you can also work offline, and your data will simply sync automatically the next time you connect to the internet. It is a real benefit during an internet outage or when you want to be productive during a flight.
Benefit 2: Boosted productivity
With desktop accounting, productivity is constantly a challenge. Financial data is added manually, which is time-consuming, tedious, and more likely to contain errors. With cloud accounting, you can automate repetitive bookkeeping tasks and by pulling the data directly from synced bank accounts there are no duplicates, no incorrect transactions, and no missing entries.
Cloud accounting really does makes managing your business easier. You can create invoices and expense claims, send payment reminders to customers instantly, and monitor business projects against budgets in real-time. Sweet.
Benefit 3: Security
OK, you are wary about online security.
Here’s the thing. When practicing good online security measures, cloud accounting can be way more secure than locally-hosted software. Applications like Xero and Quickbooks have advanced security technologies to encrypt your data with every transaction to keep your business’ financial information safe.
If, heaven forbid, your computer is stolen, no one can access the information you have uploaded to the cloud without having your account details. It’s much like online banking. And of course, because your info is in the cloud, you can still access and work with your information securely from any other computer or smartphone.
Cloud accounting also allows easy and secure sharing. You can share the data with as many others as you like, whether it’s us, your business coach or even your bank manager. No longer is it necessary to email reports or a data file or — even less convenient — backing up to a USB stick and delivering it to our office.
Benefit 4: Managed Backups
It’s always a surprise to me how many business owners do not back up their data — or think they have backed up their data but haven’t — only to lose weeks or months’ worth of work.
With the cloud, you’ll never have to back up your data file again. Just think of the time you’ll save not messing around with backing up.
Benefit 5: Real-time accounting
Need an update on your accounts? Using cloud computing software means you’re looking at the latest information, in real time, any time. This helps you analyse and make better decisions based on financial reports, and dramatically lowers the risk of errors from manual data entry.
Benefit 6: Reduced costs
Instead of paying a large one-off purchasing fee for software, users of cloud accounting pay a monthly subscription fee, depending on the company’s size and specific requirements.
Not only does this spread the cost over the year which is better for cash flow; it often costs less than updates for proprietary software.
There is also no cost incurred for new features, maintenance, or increased user numbers. Your business can just choose the subscription that best suits your needs.
Finally a word from your Accountant…..
For those of you not already on the cloud, it may seem a little daunting. But trust me, conversion is relatively easy these days and the benefits are way too numerous to ignore.
Give me a call or drop me an email, and I’ll help you find the right cloud solution for your biz needs.
We will even help you set up, or convert, your financials to the new system.