Business owners usually wear several hats. The thinking cap, the creative beret, the sales and marketing topper. Not too many want to don the green visor – the once-popular headwear of accountants.
Shuffling piles of paperwork, figuring out how to enter transactions, reconcile accounts, keep track of payables and receivables, generate invoices, close period ends…all are necessary to the running of a successful business. But these may be activities that many business owners are not qualified — or inclined — to execute.
A cloud-based accounting solution could fill the bill — giving business owners, and their accountants, a platform to accomplish necessary accounting tasks securely, accurately and in a timely manner.
Cloud-based accounting has come a long way; more and more it is the go-to for business owners. Almost gone are the days of piles of paperwork, obsolete data, tedious tasks like reconciliations and delays in invoicing and collecting.
Here are 12 Advantages to Cloud Accounting:
- All information can be accessed from any location. Because your data resides in the cloud, you can be in the office, on the road or at the beach and literally, have your financial data at your fingertips.
- Access can be provided to the entire team – or just key individuals – making online collaboration easy and efficient.
- All information is current and available in real-time; cash flow, payables, receivables are accurate and up-to-the-minute.
- Backups are consistent and usually automatic and because your data is stored in the cloud, that data is not at risk if your system goes down.
- Software updates happen as available and are included in the subscription fee.
- Security, to cloud-based accounting providers, like Xero Accounting Software, is a top priority. Strong encryption and firewalls assure peace of mind.
- Cost-effective: installation, updates, backups, maintenance and system administration costs are executed by and paid for by the software provider. Use of outside accounting services are minimized by the efficiency and comprehensive nature of the software. The subscription model avoids a large, one-time purchase cost. Staff will find the program easy to learn and use.
- Accuracy: using cloud accounting software reduces errors, prevents “losing” important data and maintains consistency across entries.
- Simple: processes like bank reconciliations, quotes, invoicing, etc., can be executed with just a few clicks.
- A vast array of available add-ons to manage payroll, inventory, etc., make the system extremely dynamic.
- Improved reporting: access to real-time, accurate data can help inform better decisions and track business trends and opportunities.
- The risk of theft, fraud or embezzlement is vastly reduced with important information protected online and by having protective internal controls in place.
Even though cloud-based accounting systems are almost out-of-the-box ready, access to a network of certified accounting advisors is available through some of the platforms, like Xero.
Making the switch to cloud-based accounting software is a long-term remedy for companies who want to have greater control over their accounting plus an ROI that makes a business owner SMILE.
Ready to have your business take off? Contact Edward Thomas Associates — experienced financial advisors and accountants.