Cloud Software has Many Advantages
Why online accounting software will be better for your company…
Here is a short list of just some of the benefits a business can discover through moving its books to the cloud:
Online accounting software has become increasingly easy to learn and use in day-to-day business operations. Once your account is up, it can be kept up to date with a few regular data entries – information from bank statements and invoices is automatically uploaded and swiftly processed into the correct categories – in a fraction of the time it takes on desktop software. Having more current, accurate financial information offers further advantages, but we’ll look at these below…
For all types of business computations, accuracy is essential. Mistakes made in calculations can possibly lead to significant losses or other issues. Good online accounting software has been built, tested, proven, improved, re-tested, improved again and proven in everyday use. It doesn’t make erroneous calculations. Cloud accounting keeps you from making mistakes. Simple.
Security (believe it or not)
Since online accounting software saves data online, some business owners might be worried about security. However, security is a top priority for online business software companies. In much the same way as banking has moved into the cloud and stayed secure and effective, whilst enjoying the benefit of sped up processes (you do use online banking, right?), companies’ are doing the same with their accounts. It is far, far less likely that the internet will suffer a long-term breakdown (the world simply can’t afford it) than your local computers/server failing. Fire, virus, hacking, physical theft… all of these local events are much likely to happen, and harm your business – you’re much safer in the cloud.
Paying Employees, Subcontractors and Vendors
Without lengthy paperwork, online accounting software makes it easy to make sure that funds are in place for wages and accounts payable, while hugely boosting efficiency in this area. In addition, the online connection makes it easy to invoice clients, check that payments have been made or received, link up with bank information, and assess your business’ financial health – and therefore its ability to react to events – wherever you are, before there are problems.
One of the greatest benefits of online accounting software is the savings. For small businesses running on tight budgets, hiring an accountant to spend days per quarter getting your books up to date can be very expensive (as well as not offering all of the advantages listed above). Running software on an in-house server – even if you really want to spend all those hours doing your own books – can end up costing a lot with all the necessary upgrades and system tools. The good online software companies run on subscriptions, you’ll only have a small fee each month instead of a large one-time purchase and, if you want to do a lot of the work in-house, you’ll receive ongoing training and support when required. If you pay a professional bookkeeper to do work for you, you’ll get way more info and powerful tools – as listed in the points above – and they’ll still spend far fewer hours working on the books. You make more AND you save.
Monitoring/Managing Cash Flow and Incentives
Effectively managing your cash flow can help your business save money – avoid charges and maximize interest gained. Online accounting software makes it simple to determine incentives for employees and discounts for creditors or customers, plus can easily be used to display these markers in real time. Far from being confusing in the way traditional books and spreadsheets can be, managers and/or owners can view profits and losses in a comprehensible way.
Getting in the Cash
One of the most important aspects of any business is invoicing. Missing invoices means failing to bring revenue to the company (and it does happen); making errors when invoicing can damage your bottom line, your cash flow and also your reputation. There are many add-on applications, tailored to various types of business’ needs that make reporting on work and generating appropriate invoices pretty much automatic. Creating invoices with online accounting software saves time and prevents losses caused by human error. You can instantly send invoices directly to clients through email.
The fact that online accounting software is much more efficient than filling out paperwork is beyond dispute – as is the point that it also saves time over desktop-based systems that don’t facilitate integration of processes. Once you move to the cloud and get things set up properly, half the admin work for all future jobs is already done. This major boost in efficiency has a secondary benefit – boosting people’s productivity: Paperwork is tedious and tiring, causing employees to become distracted, frustrated and less productive; once you embrace technology and make everyone’s lives easier, productivity increases tremendously.
As mentioned at the top of this post, good online accounting software helps businesses track trends, losses and profits far better than they could in the past – in real time, with little or no effort from staff members. There are also increasingly powerful and incredibly affordable tools to help analyze, simplify and present the data the software gathers. Once business owners have embraced these tools, they help the business discover new opportunities, perceive risks better, and improve revenue.