Big IdeasThe Benefits of Cloud Accounting Software
12 May 2018
Speed and accuracy matter and that’s why cloud accounting software is a smart investment. Run your business from anywhere, access better reporting, save money, and improve your business with smart add on software.
On-line accounting, allows business owners to stay connected to their finances and to work more closely with their advisors.
Cloud accounting software is similar to traditional accounting software. The big difference is that the data is stored on remote, external servers (someone else’s servers, not yours!). Access can be gained via any device with a decent internet connection and the software often comes with the benefit a whole ecosystem of add-ons that can be used to improve your business.
Here’s some of the benefits many businesses are gaining through their use of cloud based software like MYOB, Xero and Quickbooks:
1. Save money
You’ll save money because a more efficient finance function is enabled through clever automation of bank feeds, reconciliation, invoicing, receivables, payables and more.
Capital expenditure and set up costs are reduced because you won’t need lots of expensive equipment. Version updates and IT administration & maintenance costs all have a smaller effect on your net profit because these are taken care of by the cloud platform.
2. Better Information
Once you’re up and running you’ll have access to real-time reporting. And you’ll be more able to work with your advisors to ensure the reporting is meaningful and a source of business intelligence.
3. Cyber Security
You probably aren’t a cyber security expert. Cloud based service providers use world class security and will do some of the thinking and risk management for you. Having said that, you still need to be vigilant and ensure you have good practices at your end. Here’s some info from Xero with their tips.
4. Accessible – anywhere, anyplace
Assuming you have an internet connection! The benefit here is that you are always able to access the most up to date information, and changes can be saved instantly. Multi user access means that more than one team member can work on the same file at the same time, removing the challenge of version control and improving your ability to get accurate and timely information. Imagine being able to enter sales quotes into your system while you are out on the road, or raise sales invoices on the spot using a mobile device.
5. Software integration
Most of the cloud accounting providers have designed their software to integrate with third party apps and tools which allow you to improve business efficiencies and solve your business needs. This is useful because innovation is encouraged so the technology will continue to evolve and new features will be added.
There are quite a few options, with the most common for a privately owned business being Quickbooks, MYOB Live, Reckon One, and Xero.
Before you choose make sure you allocate time towards identifying what you need from your accounting software and make a prioritised list. The best fit will depend on your industry, business size, location, and reporting requirements.
We can help you to evaluate the options and then ensure that the system is implemented and effective so that you can get the most out of it. If you would like to hear more about how cloud accounting can benefit your business then please contact us today.Back to Big Ideas