Even though Cloud Accounting has been here since the early 2000s, the sudden spike and the growing popularity of remote working due to the pandemic has triggered a need for cloud-based accounting solutions that enable organisations to continue to operate efficiently.
As small business owners aim to identify large costs and liabilities in their business with the intention to apply leaner principles to their business, they are looking for solutions that are quick, low-cost, and time saving options for managing their business’s finances.
What Is Cloud Accounting?
Cloud accounting is the practice of using an accounting system that is accessed through the internet. Because cloud accounting systems are internet-based, you can access your records anywhere and on any device that has an internet connection using an app or web browser. It has the same functionality as desktop or traditional accounting, but the whole process dwells on a cloud server versus on one computer. You log in to an always-up-to-date online solution and all data is safely stored on the server.
CPABrampton has helped many small businesses automate their processes to enhance their decision-making and improve profitability. While cloud accounting makes sense for most business because it saves time and is cost-effective, you probably have plenty of questions whether cloud accounting will be a great fit for your business.
What Are The Benefits Of Cloud Accounting?
The advantages of cloud accounting software include:
Automation: Cloud Accounting has the ability to automate many manual accounting and bookkeeping processes which enables accountants/bookkeepers to save time and increase efficiency which they pass along as a benefit to their client in terms of low cost.
Versatile & Customizable: Cloud accounting software is an excellent tool that offers great versatility depending on what your business needs are. Not just for accounting, your employees can track their hours, note any billable time, expenses, making it one safe and secure place for conducting HR administration of many day to day tasks.
Safe & Secure: The cloud accounting technology is a much more secure method of storing financial information than a desktop-based software. The data is routinely backed up to servers in multiple locations and there are no physical hard drives or computers containing sensitive data that can be stolen. Since financial information isn’t kept on-premise, the risks of fires and natural disasters are also mitigated.
Sync Data Automatically: As the financial data & reporting can be accessed regardless of location or device, it facilitates real-time communication, which allows small businesses to stay up to date and make important business decisions with confidence. The ability to provide automatic sync updates is crucial is today’s world of fast and instant transactions.
Accuracy: The accuracy of your numbers is crucial. There’s always the chance of a transposed number or erroneous math in manual entry accounting, but cloud accounting software does the calculations for you.
Ability to Scale: The ability to easily scale to meet growing business needs. The cloud accounting software can easily support growth in the transactions without having to employ another bookkeeper to manage your accounts.
Go Paperless: The cloud accounting programs facilitate a paperless environment by eliminating the need to physically store and manage paper documents. This is not only beneficial from a cost and office space perspective, but also for the environment.
Mobile Use: Mobile apps work with cloud-based systems to give you quick access on your finger tips any time and anywhere.
Pay As You Go: A desktop accounting service usually has a yearly fee and may cost more. A cloud-based software is subscription based, which makes the payments more manageable and affordable.
Regular Updates: Accounting software companies create updates to their programs regularly. Receive these updates automatically, so your software remains as current as possible. Cloud-based software does not incur additional ‘Software Update’ costs associated with traditional software.
App Integrations: The ability to integrate with other cloud solutions. These integration capabilities will improve the efficiency and increase the power of your cloud accounting technology stack.
Is Cloud Accounting Good For Small Businesses?
Yes. Whether you are a small suburban restaurant or a new entrepreneur, your business can benefit from implementing cloud accounting. Whether you have one employee or 1,000, cloud accounting software can help you manage your payroll expenses, tax remittances and other business expenses and support all the financial reporting you need to run your business effectively.
Is Cloud Accounting Safe & Secure?
Security is the top concern in the cloud accounting space, given the sensitivity of the data associated with cloud accounting applications, such as banking and financial data. When compared to desktop accounting software, which could be compromised if a company computer is stolen, lost, or damaged, cloud accounting software has many security advantages. Many cloud accounting solutions use state-of-the-art measures such as multi-factor authentication and encryption, further ensuring that sensitive data remains secure.
How Much Does It Cost?
A desktop accounting service usually has a yearly fee and may cost more. A service for cloud-based software is subscription based, which makes the payments more manageable and affordable. Each software comes with different tiers of service, so you’ll pay for only what you need with the option to upgrade or downgrade if and as needed.
There are plenty of affordable cloud-based systems out there. Most often, the cloud accounting programs are available for purchase as a subscription model. The pricing of your cloud accounting software will vary based on the applications you need to meet your unique business needs.
Choosing the right accounting software is a critical decision for any small business. The right accounting program can help you set goals, improve your cash flow, discover red flags, and increase profits. When deciding on the best accounting system for you, some key things to think about are: how much automation you need, how much time and money you want to save, and what additional financial features you need, like payroll and time tracking etc.
Get in touch with CPABrampton to get a detailed and customized solution that is a perfect fit for your business and budget.