5 Greatest benefits of cloud accounting software
Updated: Mar 18
Why cloud accounting and what does it mean to me?
In the current economic climate, it is especially important for you as a business owner to make up-to-date, well-informed decisions, enabling you to remain competitive and grow your business.
Business owners are facing daily challenges in understanding and growing their businesses due to a lack of financial decision-making information and tools available to them. Information is either not available, outdated or not relevant to them by the time it is viewed. This often forces owners to get personally involved with accounting issues by trying themselves to obtain the desired information needed, thereby neglecting day-to-day management of the business itself.
An increasing necessity have been established where business owners in the SME (Small and Medium Enterprises) environment want to be more involved and updated with accounting information than ever before. This, however, should not be to the expense of you as the owner being focused on what they are best at - managing your business without constraints.
In the process to become increasingly connected to the finance function, one of the major things to consider is the option of whether to make use of a #cloudaccounting package or not.
1) Mobile access and flexibility
Business owners enjoy the ability to obtain a live overview of accounting information by the click of a button. Access is not limited to specific computers or servers. Information can be accessed anytime and anywhere, even from #mobiledevices. Cloud accounting software connects the owner with the accountant, enhancing the work-relationship and communication between the parties involved.
2) Time saving
IT has greatly evolved over the last few years. The #automation of accounting functions, system #integration between systems as well as artificial intelligence (machine-learning techniques) enable accountants to use #technology to simplify the month-to-month accounting process. Reduced data-entry with less paperwork further increases the effectiveness of the accounting function.
In short, your accountant can do more in less time, which should count to your advantage in negotiating accounting fees and setting up a feasible payment plan.
3) Increased functionality
Cloud accounting software tools enable business owners to have increasingly updated, real-time financial information. Accountants are equipped to reconcile and finalise accounting records much quicker, thereby providing output #reports more accurate and timeous.
Most #cloudaccounting packages can be personalised using different setup options as well as various add-on products that can be uniquely custom-added to fit your exact business requirements.
4) Enhanced owner connection and involvement
Collaboration between accountants and business owners are simple and straight-forward as owners have direct access to financial information. Business owners can draw reports themselves, plan #cashflow, follow-up on outstanding accounts, view tax reports etc.
Due to the accessibility of accounting information, outsourcing your accounting function has a much smaller impact on the business as it is mainly the chair where your accountant is seated that differs.
Real-time financial information is available, enabling business owners to identify and resolve issues immediately as well as making informed and updated #businessdecisions (for instance cash flow management).
5) Increased security
Financial information is #encrypted and automatically stored in the cloud and not on a physical local server. This eliminates the need for regular backups and offsite-storage costs. Automatic updates occur in the cloud, with limited or no human involvement at all.
By assigning applicable access rights to users, make it nearly impossible for staff members to access sensitive or confidential information. IT-controls are managed by third party organisations that specialise in keeping client data secure and safe.
Modernised accountants need to be specialised in using accounting software tools, providing #businesssolutions specifically tailored for each business. These tools enable accountants to be more efficient, effective and reliable compared to what traditional accounting software packages include. Clients should be regularly updated with financial information, as accounting programs being used are mobile, live, and stored within the cloud.
It is also important to choose the right accountant fitting for your business.