Why cloud accounting is good for business
If you want your business to work smarter and faster, cloud accounting software is a wise investment. Working in the cloud will give you a better overview of your finances, and speed up your business.
What is this thing called the cloud?
Think about when you use internet banking. Every time you access your bank data, you’re using the cloud. The cloud makes data and software accessible online anytime, anywhere, from any device. The hard drive on your computer or laptop is no longer the central hub.
What is cloud accounting?
In the case of cloud accounting, you keep your business books online. That includes records of income and expenses, and assets and liabilities. The information is encrypted, much like a bank’s, so only people with the login can view the data. Businesses started using cloud accounting software – also known as online accounting software – in the early 2000s. Most systems come with tools for quoting, invoicing, managing bills and more. Learn more about what cloud accounting software can do.
How cloud accounting works
Users subscribe to an online accounting software solution and move their books to the cloud. From then on, they can access their accounts from any web browser, or from an app on their phone. Most users connect the software to their business bank account, so that banking transactions flow automatically from the bank to the books. This saves them from a lot of data entry.
Benefits of cloud accounting software
Running your business accounts online has many advantages.
- Data about your sales or income and purchases can flow straight from your bank to your books so you don’t spend hours transcribing them.
- You can see your current financial position at any time.
- Multi-user access makes it easy to collaborate online with your team and advisors.
- It’s online software so there’s nothing to install or update, and all your data is backed up automatically.
- You can set up a dashboard showing important financial information like who owes you money, what bills are due, and how your cash flow is looking.
Accounting software shouldn’t be a chore to use
Small business accounting software that’s not available via the cloud can be tedious. It requires a lot of manual data entry and can suck up far too much of your time and effort. This doesn't add value, and takes the fun out of being in business. Cloud software can save your company time and money.
Quote of the week
If you need a financial
advisor or counselor look
for someone with the
heart of a teacher.
By Dave Ramsey