When running a company, access to the latest financial data is vital to help you in making informed and strategic decisions. However, access to this data is a challenge when using traditional desktop accounting software. Indeed, outdated info can also negatively impact the advice you get because the crucial information you get might be too late. The best way out is using cloud accounting services.
In this post, we dig deeper into cloud accounting to demonstrate what it is and why you should start using cloud computing services in your company.
What Is Cloud Accounting Services?
To demonstrate what cloud accounting is, let’s go back to the beginning and look at the traditional desktop accounting programs.
When using a desktop-based accounting program, the applications are installed into your computer so that you can only run them there. This method came with a number of drawbacks, such as limited data access, regular need for program updates, and risk of data loss in the event of a computer crash or theft. To address some of these challenges, a new model of business accounting, cloud-based accounting, was developed.
Cloud accounting software comes with all the functionalities of desktop accounting programs but takes the entire process away to the cloud. Therefore, there is no desktop application required. Instead, you will only need an application performance interface (API) that allows you to connect and do all the accounting tasks that you require. Like an email address, which you can access from any device and location, so is business cloud accounting.
Benefits of Cloud Accounting Services over Traditional Desktop-Based Apps
Cloud accounting services are considered like an evolution from traditional desktop programs. Similar to Software as a Service (Saas) business model, cloud accounting eliminates the drawbacks and high costs associated with desktop accounting. Let’s move closer to your enterprise; how exactly do cloud accounting services help your enterprise? Here are some of the benefits of using cloud accounting services in your business:
- Make it Possible to Access Your Account from Anywhere
The most notable benefit of using cloud accounting is that you can be able to access all your business numbers 24/7 and from any location. This implies that you do not have to be tethered to an office computer to be able to work on or access the company’s books of accounts. Instead, all you need is the internet and a smartphone or laptop, no matter the location, to access the numbers, from management to financial data, of your enterprise.
For a manager or accountant who needs to travel to another state, perhaps for a seminar or to represent the firm in a meeting with investors, access to the latest accounting data about the company will be only a click away. Now that COVID-19 pandemic has taught us the importance of flexibility in management, cloud accounting will be an excellent way to be prepared to work remotely in the case of a disaster or challenges working from the office. The cloud-based accounting software makes it possible to work online and deliver the right results in no time.
With the best cloud-based software, such as Xero, the features make one feel like he/she is in a real office. See; you will be able to do every financial activity for your small or big firm, from bookkeeping to handling tax matters online.
- The Best Way to Access Real-Time Business Accounting Information
When you shift to cloud accounting services, bookkeeping and bank reconciliation can easily be kept up-to-date, which implies that you are able to achieve real-time reporting. Therefore, instead of using historical reports that are months, weeks, or days out of date, cloud accounting provides instant access to the latest company’s financial and tax position. You will find this real-time information very useful when relying on cash position and other business accounting data for planning future spending or making key strategic decisions.
- Easy Access to an Entire Range of App Ecosystem
When you open APIs of the best cloud accounting program, such as Xero, it also provides access to a whole range of 3rd party tools to help you expand the core business system. Some of these apps and tools include invoicing apps, cash flow forecasting tools, and other practical solutions for your firm. With these tools, it is easy to save time and cut down resourcing costs. So, you should carefully review these tools to select the one that can help you enjoy better access and more tools based on your company needs.
- Enjoy Live Feeds from Your Bank Accounts
One of the most important tasks in accounting is reconciling the numbers with the company’s bank accounts, and it can be a herculean task for many firms. When using the traditional desktop accounting apps, the process involves getting the bank statements and keying in the data manually.
However, cloud accounting service simplifies this so much because it is able to get live feeds from your bank.. Instead of you downloading the statements, the cloud computing program automatically pulls the data from the bank, helping to speed up bank account reconciliation so that you will always enjoy balanced financial data about the company. Well, the reconciliation is also pretty straightforward and will help you avoid errors in financial statements.
- Secure Data Sharing
Accounting information used in businesses is very sensitive, and you must always be extra careful with who has access to it. When using traditional accounting programs, sharing of data can be very insecure because you have to rely on things such as USB memory sticks or sending emails between various officers in the management. This opens the gates to a full range of risks to your company.
To counter this, cloud accounting services by top firms help to provide safe and secure access to selected persons. The selected users and advisors get secure access to all the information they need to provide the right advice or decisions. Therefore, you do not have to get worried that the officer in charge of accounts will walk into the office one morning and say that tax, financial, or other work related data is lost.
Another awesome attribute of cloud accounting aps is that you can set it to backup data after certain intervals to avoid the risk of loss. This is why accountants who have used it always indicate it is the best. See; why get stuck with traditional programs when a new app that is more effective and reliable is available for your firm.
- You are Sure of Always Working with the Latest Software Version
With traditional programs, be they in payroll management or accounting, such as QuickBooks, among others, using outdated versions or failing to install the right updates could mean failing to get the best functionalities. It can also compromise the security of your data and the company.
This is why you should go for cloud computing services because the programs are always up-to-date. This means that you can set aside the worry about updates because the developer has already taken care of that. Instead, you should focus more on the core operations, such as accounting, management, and product development. Again, they come with impressive support that you can count on to address challenges when stuck.
As you can see, cloud accounting comes with numerous benefits that you do not want to miss. Therefore, if you are looking forward to automating most or all of the accounting operations, from bank reconciliation to automated cash collection; it is time to go to the cloud. Remember to carefully review the available cloud computing services providers and only select the one committed to helping your brand move to the next level.