3 Things Cloud Accounting Will Save Your Business – Besides Money!
It is a well-known fact for people running a small business that if the systems they use to handle their accounting of business transactions doesn’t is hard to access or can’t integrate with other systems, then it becomes too difficult to handle. The software alone will take up much more of your time and demand double the input from the user.
Not only will this lead to your business losing value in the market but it can also impact your business’s reputation. Cloud accounting software offers the advantages of being accessible from any internet-connected device and playing well with other systems. As a rule, it is always better to use cloud accounting, no matter what business you are doing.
What is Cloud Accounting?
Understanding cloud accounting is as simple as understanding the workings of internet banking. Every time you log into your account online via phone or laptop to make use of an internet banking feature you are, in some way, making use of cloud accounting.
It is nothing more than a platform that will help users gain access to their data and software anytime, anywhere. Cloud accounting comes as a great relief to most users because the hard disk is no longer the central hub to connect to the internet.
What’s wrong with legacy accounting systems?
Some of the problems people face when using traditional accounting systems are:
- The data that is stored in the system is not up to date, and the software is never up to date with other technology.
- The software runs on a single computer and the data bounces from one place to another. For instance, a USB drive or a removable hard drive. This kind of data storage is neither secure nor reliable.
- The access is given to only one person, leaving no one else capable of accessing key financial and customer details.
- It is very costly as well as complicated to keep all the backups on hard drives.
- It is very expensive and time-consuming for a small business owner to make use of the same software.
- The customer support that the software renders is extremely slow and expensive.
What are the benefits of using cloud accounting?
1. Having Access to Numbers
If you run a small business and are looking for accounting software, then it is better to start with cloud accounting as it will help you gain access to the figures that are related to your business at anyplace and anytime. The host of the software is controlled remotely, so there are no issues getting updates for the software.
While it’s an obvious benefit that storing your data in the cloud rather than a single machine means that you can still access that information even if you can’t get to that specific machine, there are other benefits of centralised storage too. You get the advantage of the full cloud system’s robust security, and you don’t risk losing access to your numbers if you have a problem with your own computer.
2. Building a healthy relationship with your accountant
If you own a business, then it becomes a necessity to have a solid relationship with your accountant to see your yearly financial status, and it becomes even more necessary when the year is coming to a close.
If you are using cloud accounting software, then it is possible to add your accountant as a member of the management team of your business which can cut down on costs, speed up communication and ensure nothing is lost in translation.
3. Going Paperless
Having proper paperwork available all the time and properly organised for quick retrieval is quite a difficult task if you’re relying on hard copies. There are a lot of things to manage between the expenses receipt, the invoices, and any other items that accumulate daily when they are handwritten on paper.
With cloud accounting, it is possible to move the paperwork directly to the software and do away with the actual paper altogether. This will help you get a look at the numbers of your business with a quick glance. Also, it will reduce the manual risks and will result in a faster method to help you manage your finances.
Legacy accounting systems eventually becomes too difficult to manage and work with. Over time it will prove that it is neither safe nor reliable. It is better to use the cloud accounting software and take advantage of its many benefits that will help you in creating the ecosystem that will work best with your business.
If you are interested in learning more about cloud accounting software, then you can start the free trial here anytime.