If you want your business to work smarter and faster, cloud accounting software is a wise investment. Working in the cloud will give you a better overview of your finances, and improve collaboration with your team.
In case, you want your business to function faster and smarter; it is wise to invest in cloud accounting software. By transitioning to the cloud, you can have easy access to financial information and capacity to work in complete harmony with your team.
Use of ordinary accounting software which is not in the cloud can be a tedious task. Typically, it can take up too much of your valuable time and effort. Instead of dealing with the core of your business, you waste time dealing with financial data. But cloud-based accounting software can save money and time of your company.
But before we talk about how cloud-based accounting can benefit your business, let’s take a moment to understand what cloud is all about.
What Is Cloud?
Cloud computing is just like net banking. Every time you use online finances, you are using the cloud. Every time you are using storage on the web(like Google Drive or Dropbox) you are using the cloud. In fact, the cloud is a platform to make software and data accessible online anywhere, anytime, and from any device. This means you are no longer are you depend only on your personal hard drive or computer/laptop.
Issues with Offline Traditional Accounting Software
- Neither the software nor the data is up-to-date.
- The software works only on one computer and data frisks from one place to another, like on a USB drive. This is not reliable or secure.
- User access is only for one person. Other important persons cannot access details of customers or finances.
- It is complicated and costly to maintain back-ups of information.
- It is time-consuming, difficult and expensive to upgrade software.
- Customer support is slow and expensive.
How is Cloud Useful for Accounting?
You can make use of cloud-based accounting platform from any device using an internet connection. Online accounting enables business owners linked to their accountants and financial data. The software can integrate with a complete system of add-ons. It is easy to use, cost-effective, and scalable.
In case of cloud, there is no need to install and run applications over a desktop computer. In its place, you only have to pay a monthly subscription for the online software.
Here are some benefits of best cloud accounting software:
1) Unified and Simplified
Because accounting information is stored in the cloud, it can be accessed or updated from anywhere. Team members can collaborate with each other, even when based on various physical locations.
This is especially useful when a business owner wants to check the financial health of his business while their accountant wants to generate an invoice or reconcile a bank statement, all at the same time.
You will have only a single data file. In traditional accounting software, there was a need for multiple data files but in case of cloud, there is a centralised database.
Cloud-based software is growing in popularity because it’s accessed through the internet, and you don’t have to be bound to your office desk. When you use cloud-based accounting software, you will be able to check on your company’s financial data either from home or office, through your tablet or smartphone. This is one of the main benefits of accounting software that are cloud-based.
2)Secure and easy sharing
Cloud software enables the sharing of data with all stakeholders from your accountant to your bank manager. No more do you need to send separate e-mails or exchange USB sticks to transmit data in an easy and safe manner.
Never will you have to create back-ups for files containing crucial data. This was a need in the past when very often backed-up data was prone to get lost due to poor management.
4)Works both offline and online
One can enjoy the advantages of centralized data in an online mode. Better still, you can even work with data in offline mode as your data will sync automatically the next time you link to the internet. This is a great bonus when and if you are faced with internet outage.
5) GST compliance made easy
If you manage a small business, then you would want to make the filing process of your GST process as easy as possible. To do this, you have to consider making use of GST-enabled accounting software, as it will automatically apply the appropriate GST to your invoices and allow you to extract important financial documents, quickly, so that you’re always ready to file your returns.
Your cloud accounting software can also be used as a reminder so that you can remember to file your tax returns on time. You have to set up the time and annual dates for your returns.
6) Automation will help you save time
Most cloud-based accounting software will connect your business bank accounts and sync them with your portable devices, and this will help you monitor and track your sales, inventory, and costs. All you have to do is ensure that most of your data is up to date, consistently; this way, you are assured that you’re viewing real-time data.
7) Easy collaboration
You can make use of web-based accounting software if you don’t like compiling financial reports for your accountant. This is because all your financial information is hosted on the cloud, with the help of the accounting software, and it can be accessed from any location that has a good internet connection. You can also set up easy access for your accountants; this will allow them to log into the software as required. You can control employee access, as well; this means that the company can grant employee access to information regarding payroll without providing them access to your official bank accounts.
8) Cloud-based accounting software improves accuracy
Once you have your financial information in one place, and you have consistently entered the necessary data in the system, then you will reduce any risk of accounting errors that will cost you a lot of money. Cloud-based accounting software is usually easy to use, and it lets you enter the income and expenses as needed; it will also allow you to put your transactions into various categories. This will help you track and review your expenses and ensure that your financial information is right. Instead of an Excel sheet, you can make use of accounting software, this way, you won’t need to know various formulas, shortcuts, or accounting practices. You will have to enter the correct expense and income information, consistently, and you will receive accurate reports.
9) Doesn’t need installation
Cloud-based software is programmed online, which means that you don’t have to purchase or install a program directly into your computer. In the past, accounting programs have to be installed on all systems within the accounting department. Now, you can access cloud-based software by simply logging in with the required information, into the address bar, and logging into the account.
Since you aren’t using any software that’s installed in the office server, you won’t really need a dedicated IT team to update the software.
10) Tech support is available
One of the many advantages of an accounting information system is the amount of technical support available to the clients. You will be provided with various ways to contact the tech support department of the cloud software company, and this will include chat, phone, and forum support. If you hate the idea of bookkeeping and dwelling into paperwork raises your stress levels, then you should look at switching to a cloud accounting software because it will make your job much easier.
With cloud-based accounting software, your finances will be continually up-to-date, your data will always reflect the current real-time information, and
Does your business use a cloud-based accounting solution? Let us know in the comments below.