If you ask entrepreneurs and small business owners why they started a venture, they would probably say something along the lines of, “I want to be my own boss or I want to follow my passion and make my vision come to life.” Rarely would you hear one say that he would like to spend hours on end dealing with accounting and bookkeeping. Unfortunately, this is a reality for many SMEs and so, some end up spending a huge chunk of time and money cleaning up books or purchasing and implementing an expensive software.
Fortunately, there exists an ever-growing ecosystem of cloud-based solutions and services that can manage invoicing & collection of bills, tax & compliance, online bookkeeping, and even budgets & financial planning. By embracing cloud accounting service, you can simplify these processes and have more time to focus on growing your business!
Here are our top reasons on why running a business is more efficient in the cloud.
Smarter business decisions
As a business grows, it becomes more and more crucial to make informed decisions with a clear and updated view of the financial position of your company. Through cloud accounting technology and services, you can have updated and frequent financial statements to base your strategic decisions on.
Improve your financial accuracy and controls
Most of the cloud-based solutions propose functionalities that can truly help businesses improve their financial controls. For example, bank reconciliation can be simplified by connecting your bank account or uploading your bank statement and having your accountant match your entries with actual bank transactions.
Efficient and simple
With the right process and expertise, cloud accounting solutions can be implemented for a fraction of the time (and cost) of traditional accounting software. Once the on-boarding is completed most functionalities are oriented towards the end user, making it as easy as possible to master.
Cloud solutions ensure that all your financial information is always updated and available online. This allows you, some of your employees, and your accountant to collaborate more efficiently, and answer key questions remotely and in a faster way.
As the financial data is stored online, there is no need to have regular back-ups. Your information is indeed more secure online than on premises where hardware malfunction could lead to data being lost or corrupted.
Companies who develop cloud-based solutions such as Quickbooks Online or Xero keep innovating and finding smarter ways to benefit SMEs. Once you subscribe to one of them, you will have constant access to the latest version. This eliminates the need to pay for an expensive upgrade of a traditional software every time something new comes up.
Competitive pricing and flexibility
Pricing for cloud accounting software is transparent and competitive. Such services propose monthly fees instead of big, one-time fees and most of them can be cancelled anytime.
Integration for an end-to-end solution
Cloud-based solutions offer off-the-shelf and easy-to-implement integrations that allow you to complete your end-to-end process, and tailor your ecosystem to your business. These could include payment gateways such as Paypal and procurement and inventory management systems such as Unleashed.
It’s clear that cloud accounting is an attractive option for being on top of your finances, and there is a whole slew of other reasons on why it is beneficial to SMEs. Since each business is different, the transition to cloud-based processes may seem intimidating at first. But with the right expertise or partner, those benefits can quickly materialise.
We would be glad to hear your feedback and opinion on the matter. You can also contact us and schedule a free consultation, if you would like to know more about how cloud accounting can help you achieve your business goals.