Cloud accounting software is software accessible via the web, that supports businesses with the accounting function of their business. It covers everything from bookkeeping to management accounts and all the way to the statutory accounts and tax returns.
Cloud accounting has become increasingly more accessible to businesses of all sizes over the past 10-15 years.
Here are some of the benefits of cloud accounting for small businesses. It’s important to note that you need to have the right cloud accounting software for your business, to reap all the rewards of these benefits.
Accessibility
Cloud accounting software is easily accessible – all you need is an internet connection.
Old accounting systems saw you having to access them via desktops in offices, but the modern solution means you don’t need to be chained to your desk to update your accounts or access your accounting information.
If you need to access your accounting system when you’re on the road, or at a customer’s house, so you can quickly raise a sales invoice and email it to them, with cloud accounting you can!
All your accounting records are easily accessible, anywhere, anytime, on multiple devices (phone, tablet, laptop).
Up-to-date Software and Security
Back in the day you would have to take a backup of your accounting regularly, to secure against loss of data. Often this meant there was a limitation to the number of users that could work in the accounting system at any one time as well.
You would also have to update the software manually, which was quite time consuming, when an update was required.
Cloud accounting software, however, provides auto-updates of the software. Your data is also backed up and saved automatically by the software provider. This also provides enhanced security of your data, as it’s not on a physical server or disc in your office. There will also be enhanced security measures to access your data, such as two factor authentication.
Check your software provider’s back-up, data and security policies to give you peace of mind on how they will protect and secure your data.
Paperless and Eco Friendly
Cloud accounting software can help you work entirely electronically within your business. No need for endless paperwork, that you need to store for years. Save on printing costs, stationery costs and be more eco-friendly by having your accounting system hold your paperwork.
There are receipt and invoice processing tools, sometimes attached to cloud accounting software, and sometimes separate that you can connect to your cloud accounting software, that will not only help you store invoices and receipts – but they’ll read the documents for you too!
Work paperless, eco-friendly, and smarter not harder!
Automations and Integrations
Speaking of working smarter, not harder…
Cloud accounting software is clever kit, that allows common automations within the software itself. Do you invoice the same customer on the same day each month for the same amount, like a subscription? Automate yourself a recurring sales invoice to cover that task off – because that’s what cloud accounting software can do!
Do you need to take payments by card? Plug that payment service directly into your cloud accounting software so your customers can pay your sales invoice by card. Run an online shop? Integrate your shop to your accounting software and have it create your transactions for you.
There’s a whole plethora of automations and integrations available with smart cloud accounting software, that will allow you to work in the smartest ways.
Efficiency, Scalability and Profitability
If you’re fully utilising your cloud accounting software to take advantage of automations and integrations what you’re doing is driving efficiencies. And the beauty of efficiencies is that they drive profit.
Efficiency is the 9th driver of profit – and a favourite, because with efficiency you don’t need to change any of your other numbers to make more profit. You don’t need to increase your sales prices or anything – you just give yourself the ability to do more of what you do, because you’re more efficient and free up time to do more revenue and profit driving tasks.
Once you’re efficient, and driving that profit, you can also scale your business – and grow!
Plus, cloud accounting software allows multiple users to log into the accounting system at any one time. It also allows for different levels of access for different staff members to easily be built into the system. Wins all ways around.
One Source of Information
You can access your accounting information from anywhere at any time. It automatically backs up, so you don’t need to worry about back-ups and version control.
This means you have one master source of accounting information to run your business on.
If you have an accountant, they will have easy access to your accounting software too, and they can support you with year end adjustments to ensure that you always have up to date, readily accessible information.
Real Time Data, Accessibility of Information and a Suite of Reports
With your master data set within your accounting system, you’ll have access to real time data and accounting information.
Cloud accounting software also comes with a built-in suite of super helpful reports that will help you manage your business. With the push of a button, you’ll be able to see your profit and loss account, or which customers owe you money.
With this information you can actively and effectively manage your business’s finances. You’ll also be able to make the best, and more informed, business decisions – because you have all the up to date information at your very finger tips.
Cost Effective
In the past, desktop accounting software was expensive. Some of it still is! And it’s not as versatile as cloud accounting software.
Cloud accounting software has the added bonus that it’s super cost effective, especially for small businesses. Monthly subscriptions can be very reasonable and competitive, which makes it accessible to all small businesses.
It’s even more cost effective if you’re a client of ours, as we provide a version of Xero and Dext free of charge with our accounting packages.
Summary
It’s important to make sure your cloud accounting solution suits your business’s needs, and provides all the automations and integrations you need in your business to be the most efficient and effective.
If you’re having to battle to get information in and out of your accounting system, then you’re either not using the right one, or you’re not using it to its full potential.
Accounting software should work for you, not you fighting to work it. If you’re struggling, speak to your accountant about it – they should be able to help you either use your software better, or offer advice on ways to streamline your processes to support efficiency.
If you’d like help and support migrating to the right accounting system for you, or streamlining your systems and processes, get in touch with us for a Discovery Call – we’re experts at this!