Why cloud accounting is good for business
Updated: Nov 24
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 speed up your business.
What is this thing called the cloud?
Consider how you use internet banking. You use the cloud every time you access your bank data. The cloud makes data and software available online at any time, from any location, and on any device. Your computer's or laptop's hard drive is no longer the central hub.
What is cloud accounting?
In the case of cloud accounting, your company's books are kept online. This includes income and expense records, as well as assets and liabilities. The data is encrypted, much like a bank's, so only those with the login can access it. Cloud accounting software, also known as online accounting software, was first used by businesses in the early 2000s. Most systems include tools for quoting, invoicing, bill management, and other tasks. Learn more about the capabilities of cloud accounting software.
How cloud accounting works
Users sign up for an online accounting software solution and migrate their books to the cloud. They can then access their accounts using any web browser or an app on their phone. Most users link the software to their business bank account so that banking transactions are automatically transferred from the bank to the books. This saves them a lot of time entering data.
Benefits of cloud accounting software
There are numerous benefits to managing your business accounts online.
Data about your sales, income and purchases can be transferred directly from your bank to your books, saving you hours of transcription time.
At any time, you can view your current financial situation.
Multi-user access makes it simple to collaborate with your team and advisors online.
Because it is online software, there is nothing to install or update, and all of your data is automatically backed up.
You can create a dashboard that displays important financial information such as who owes you money, when your bills are due, and how your cash flow looks.
Accounting software shouldn’t be a chore to use
Accounting software for small businesses that aren't cloud-based can be time-consuming. It necessarily requires a significant amount of manual data entry and can consume far too much of your time and effort. This adds no value and detracts from the enjoyment of doing business. Cloud software can help your business save time and money.
Problems with traditional accounting software
The system's data isn't always up to date.
It only works on one computer and data is transferred from one location to another, such as a USB drive. This is neither secure nor dependable.
User access is limited to one person. Key personnel does not have access to financial or customer information.
Keeping backups is expensive and time-consuming (if done at all).
When compared to cloud accounting software, which automatically updates, upgrading is costly, difficult, and time-consuming.
Why the cloud and accounting software are the perfect matches
Cloud-based software can be accessed from any device with an internet connection. Online accounting software connects small business owners to their data as well as their accountants. The software is compatible with a wide range of third-party business apps. It's scalable, affordable, and simple to use.
There is no need to install and run applications on a desktop computer in the cloud. Instead, you pay for the software on a monthly basis.
Cloud security is world-class
As a small business owner, you may be concerned about the storage of your data by a cloud service provider. However, the cloud is one of the most secure methods of storing data. If you use cloud software, for example, and your laptop is stolen, no one can access your data unless they have a login to your online account. Your data is stored online on secure servers, rather than on your hard drive when you use cloud software.
Being in the cloud means that business productivity does not have to suffer in the event of a natural disaster or fire because there is no downtime. All of your information is kept safe and secure off-site. You're back up and running as long as you have access to any computer or mobile device that is connected to the internet.
You can also control the level of access if you invite users to view your data. This is far more secure than sending your files via email or sending a USB stick containing your data.
Cloud-based software providers ensure that data about you and your organization is always secure and private. If you use online banking, you're already set up for cloud accounting.
Work smarter with accessible data in the cloud
The convenience of online accounting software allows you to run your business from work, home, or on the go. No matter where you are, you can be confident that you have an up-to-date picture of how your business is doing.
In the cloud, software updates can be developed and delivered more quickly and easily. This means you won't have to worry about installing the latest version, and you'll have instant access to new features. You can run your business remotely from anywhere in the world with cloud accounting software. And the possibilities are limitless when data is fluid and accessible.
Need help with Cloud Accounting for business?
Call us at +65 6262 0402 or email us at firstname.lastname@example.org to get the information details on your needs.