Using cloud-based software solutions may sound intimidating if you’ve always stuck to older, more traditional accounting means. However, cloud-based accounting is valuable software to invest in and could make your life as a small business owner much more manageable.
In this guide, we’ll detail the six main benefits of using cloud-based accounting, providing insight into why this solution will help your business’s finances thrive.
Less Time Spent on Admin
Cloud-based software runs over an internet connection, so you mitigate the need to download and update software regularly, with less time spent troubleshooting and deviating backups, and can be assured you are working on the most current version of data. As a result, you can spend more time on the business processes that genuinely matter, enabling better productivity.
Automation
Cloud-based software has many helpful automation features that save time and reduce human errors. For example, financial data from your business bank account is automatically shared through the software. Further, recurring invoices can be produced from a click of a button and subscriptions paid.
Depending on how advanced the software you use is, your cloud-based accounting could even flag up figures that don’t match, enabling you to stay on top of any risky numbers and prevent an imbalance from occurring.
Security
Generally, cloud-based accounting software is incredibly secure and reliable, providing businesses with a cost-effective and straightforward solution to securely storing financial data. With multi-factor authentication and access control features, only authorised users can access your data. As this data is stored on an internet server, it is secure and won’t get lost, meaning if your laptop breaks, you can access it from another device using your unique login credentials.
Scalability
Although your business may be small now, the goal will inevitably be to grow and expand. Cloud-based accounting software can expand to match your needs, starting with basics that suit entities with fewer transactions or may not need invoicing of payroll functions. However, over time you can add features and additional users as your business evolves.
Accuracy
It is, unfortunately, very common to enter numbers incorrectly when manually completing spreadsheets. It can be time-consuming trying to find and fix these errors, and it can become even more complicated when calculations or formulae are used. With cloud-based software, your transactions are automatically categorised and digitally added up, ensuring accurate financial records.
Real-time Reporting
Having real-time reports makes the filing of financial documentation much simpler and faster. Whether lodging activity statements, or presenting data to third parties such as lenders, a precise, real-time representation of your company’s financial health is essential.
Additionally, accounting software has dashboards with enhanced visual representation of data, such as analytics charts. These dashboards help you to identify financial trends quickly and efficiently..
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