The bookkeeping process is necessary for any business. As a small business, it is one of those tasks that takes time and energy away from the revenue-earning aspects of your business. You may take this task on yourself, or you may outsource it. Either way, what can help simplify the process and add more value to the business?
Cloud solutions are making bookkeeping much easier. Adoption of these solutions is increasing rapidly. So here are 10 reasons why businesses choose to use cloud accounting solutions versus traditional desktop versions.
1. Ease of Use
Many vendors focus only on cloud accounting and they are constantly working to make the process simple and easy for the end user. With research and client feedback, the software can be updated and tweaked giving you the simplest way of doing your accounting.
Cloud accounting software negates the need for regular backups which are required with traditional desktop systems. Service providers can guarantee that your information is kept safe and secure at all times. Even if your computer is stolen or there is a fire, your data is safe and backed up because it is stored elsewhere. Today’s reality is that your information is more secure on the cloud than at your own premises.
3. Storage Costs
Cloud solutions give you an allocation of storage where you can keep a copy of your documents electronically. No need for physical storage locations, or keeping backups of previous years from PC based accounting systems.
Some tasks like manual data entry of invoices, are prone to errors. No matter how many times you have done it, or how good you are, errors do creep in. Cloud solutions allow invoice data to come straight into your accounting system without the need for manual data entry. This makes the Accounts Payable (AP) process a lot more accurate.
You can work from anywhere you have internet access with cloud accounting software. You are not restricted to just one computer either. The software is accessible to you in the office, at home, on the go, even while you are on an around the world holiday (not that we recommend bookkeeping while you are relaxing on a foreign beach, but it is possible.)
6. Lower Pricing
There are a great many providers of cloud accounting software, most easily found through a quick Google search. Due to the large number of competitors, you are able to benefit from competitive pricing. And it is a monthly fee rather than a big lump sum upfront.
Your Accountant has real-time access to the information. They can quickly answer questions and provide guidance that will help your business.
8. You Have the Latest
Everything is done online, which means you don’t need to install anything. You will always have the latest as updates are done regularly and automatically.
9. Economies of Scale
Due to cloud accounting software being a resource shared by many, there are further benefits to be had, such as automatic updates and the availability of a large server for storage.
Most cloud accounting software can integrate with other cloud-based software solutions, which makes for greater control and flexibility in the Accounts Receivable (AR) process. For example, invoices can be sent directly from your cloud software to your customers cloud software using a solution like Link4, which is a faster and more accurate way to deliver invoices.
There are more benefits which are not listed here, but these are real reasons we have heard as to why business owners have made the switch to cloud accounting. You may discover your benefits too.