Cloud-Based Accounting Benefits
What is cloud-based accounting? It means you keep your business books online. The information is encrypted, much like your bank’s records, so only people with the login can view the data. Cloud-based accounting also allow employees in other departments, remote or branch offices to access the same data and the same version of the software in real-time.
Business owners should be using cloud-based accounting if they would like run their business smarter and faster. In today’s technologically-driven world we use cloud-technology on a daily basis, whether that is by posting pictures on social media, doing online banking, using google drive, or checking emails from any mobile device. The main benefit of cloud-based accounting is accessibility, but there are more benefits and advantages to adopting a cloud-based accounting system.
One of the main concerns when business owners consider cloud providers is their business information becoming public. The cloud is one of the most secure ways to store information. Cloud providers apply multiple levels of security, including advanced encryption and access control, to ensure that only authorized users can access your data. In addition, you can invite users to view your data and control their level of access. This is much more secure than emailing your files or saving it on a USB. Moreover, you will no longer need to perform back-ups and software updates as the cloud is always on the most up-to-date version and with the latest functions, tax rates, and necessary forms.
Cloud-based accounting can improve your bottom line by improving efficiency. Your employees will be able to make better use of their time by reducing manual entries, and reducing verification of data. For example, invoices can be fully automated and your employees will spend less time entering and checking data and more time on an initiative that can increase your profits.
Manual processes are not only time consuming, but also creates room for errors and/or duplications. Automation on cloud-based software allows for transactions to be automatically imported, posted to the correct ledger, and flags any exceptions and/or errors. Automation not only allows for importing of information, but can also be set to produce recurring invoices, schedule reports, and pay your vendors.
According to an estimate by Record Nations, per year, an average business can spend as much as: $8,000 on paper alone, around $8,500 on filing and storage. Eliminating paper is not only cost-effective, but it also eliminates the risk of vital information about your business being compromised. Physically storing receipts and sending paper reports is inefficient and unnecessary. In addition, consider the time and money it would cost to safeguard files and the risk of fire or theft of your accounting records; which you should store for 7-10 years.
Improved Team Cooperation
Your team will have instant access to necessary information and resources without spending hours attempting to locate files. Dashboards and other built-in metrics tools translate complex data into easy-to-understand charts and key performance indicators. Accountants and financial analysts will not be the only ones to benefit from cloud-based accounting, your sales leaders, human resources, executives, and customer service teams will benefit from real-time access.
Not sure which cloud-based system to choose? Still have questions on cloud-based benefits? We have done the research for you! At CPA by Choice we can help you the choose the best fit system for your business needs. We are available to answer your questions, feel free to call us or send us a message.