Update your business accounts as quickly as you update your stories on Instagram.
It can very quickly transform accounting for your Small Business into a complicated and time-consuming operation. As your company or business expands, your accounting is also getting more involved. It would help if you even had even more invoices to be created, new journal entries made, financial statements created, and the list continues.
Cloud computing, for the better, is transforming our lifestyles! Cloud computing has a significant effect on various sectors, whether it is education, healthcare incorporation, or eCommerce businesses. Cloud computing has now penetrated the area of accounting and bookkeeping with the opportunity to reach computer software in real-time. The accounting process is made more comfortable and more effective by cloud-based bookkeeping.
That’s why so many organizations and businesses use cloud-driven bookkeeping software to handle their accounting in this day and time. Accounting software will assist you in automating much of the accounting cycle measures, enabling you to spend time and energy about what counts and matters, such as increasing your business, etc.
Then why do most small businesses and companies fail? According to experts, the top reasons are:
- Failure to commercialize online.
- Failure to listen to its clients.
- Inability to adapt when changing the market.
- Fail to maintain their financial books.
The majority of the reasons mentioned do not look complex or are so overly technical that a business owner like you could not accomplish it. You spend a lot of time trying to tackle the duties of the company and so little time on important stuff like marketing and bookkeeping of your company. That is why it will help you to concentrate on the priority issues by using cloud-based bookkeeping software.
If your organization or business has not yet adopted cloud-based bookkeeping, then this blog is for you. Cloud bookkeeping software is a wise investment if you want your business to operate better and quicker. Working in the cloud would give you a more precise summary and pace up your business with your finances.
But what is explicitly cloud accounting, and is it your company’s right choice?
In this blog, we’ll explain:
- What is cloud accounting or cloud bookkeeping?
- Benefits of using cloud-based bookkeeping software.
- Why is it better than a traditional bookkeeping system?
- Key takeaways.
Don’t stress, and everything is going to make sense in no time. So without any further ado, let’s get started.
What is Cloud Bookkeeping Software?
Internet-based or cloud accounting software (also recognized as computerized accounting software) is a system that helps control and optimize accounting transactions and accounts for a company through accountants, bookkeepers, or company owners. You keep the company books online in terms of cloud accounting, which involves income and expenditure records, and assets and liabilities. The data is encrypted, almost like that of a bank, so people with a password can only access the data. The application is stored on remote servers with cloud accounting, allowing users to access the application anywhere, from almost any laptop, anywhere as often as you have internet service. You won’t believe that over 78 percent of small companies and businesses are now using cloud-based bookkeeping software and enjoying the advantages like lesser costs, enhanced efficiency, better data security, and improved accessibility.
Cloud accounting is more common than ever. Here’s why cloud bookkeeping is better than traditional bookkeeping systems.
Traditional Bookkeeping System
- Only one individual has access permissions. Key individuals are unable to access financial and client information.
- Holding backups is expensive and complicated.
- It is costly, complicated, and time is taken to upgrade.
- It only operates on one device. And sometimes not accurate and stable.
- It’s not always up-to-date with the data in the system.
Cloud-Based Bookkeeping System
- Information about your sales, earnings, and purchases should flow directly through your bank to your books so that you don’t even waste hours composing them.
- At any moment, you could check your current financial status.
- It’s online software, so you don’t have to install or upgrade something, because all your information is routinely backed up.
- Multi-user connectivity makes it much easier for the team and advisors to communicate online.
Moving on, for a good reason, here are the top benefits of cloud-based bookkeeping services for your business.
Benefits of Cloud-based Bookkeeping Services or Cloud Accounting Software
Cloud accounting offers various benefits to businesses; here are a few of them:
- Access accounting information any time from anywhere — Cloud accounting software’s most apparent benefit over any conventional accounting system is that cloud accounting software allows you to view the data whenever you want and from whatever machine you like. Through your PC, notebook, tablet, and cell phone, you could use online accounting tools. All you need is a device and a browser connected to the Network (or mobile app). This has a lot of upsides for companies and businesses of any scale. For instance, directly from your smartphone, you can build and submit invoices on the go. And, only with a few taps, you can create, display, and print accounting reports. Now you don’t have any need to ask the accountant to schedule it three days earlier. Log in to the website, go to the section of financial reporting, and download the financial report you require.
- Enhanced Real-Time Information — Will it be easier to have weekly or even regular feedback rather than just waiting for the month-end to know whether you have managed to reach your budget revenue and expenses? Many cloud-based accounting systems enable you to directly send invoices to your clients that can then be monitored for payments. How many times have you thought about which of your customers did not pay their unpaid bills? You could now send access to the data at a glimpse with cloud bookkeeping tools, and send statements about what is overdue at a click. Using all this real-time data helps you to make smarter choices. To produce more sales, for example, should you enforce the month-end sale? Would also not you know where you’re at your targeted income to make that decision vital to you.
- Improved Data Security — Another of the tremendous benefits of cloud-based accounting software is that almost all accounting information is secured on the cloud in such a secure way. This ensures that even under levels of elevated encryption algorithms, the data is protected, making it much safer than leaving it on the workplace shelf. As well as the best thing is at all moments, all of your information is synchronized. So it’s not only safer, but it’s also fresher. Solely to enable a better understanding, financial accounting had to be continuously backed up while organizations were using computer accounting software. The data has, after all, been stored on a hard disc. And hard disks are very fragile, as you undoubtedly know. They can be killed, washed, or corrupted and rendering themselves unusable. As a consequence, organizations have had to spend a considerable amount of time incorporating accounting and accounting information into their disaster recovery strategies. Thus this turn would mean higher expenditures and more lost time. You’ll have never had to think about backing up your data with online accounting software — the application will do that for you.
- Quick Access to Bank Feeds — Perhaps the most significant benefit of cloud accounting software has been its potential to connect to the banking reports of your business directly. Payments are taken from the bank right thru the accounting system by joining up through your bank. Which ensures no more bank statements being posted, helps to save time. It also means access to financial details on a live basis. Since all bank transfers are collected inside the cloud service along with all creditor and supplier invoices, the financial information is still up to date. Sales, cash flow, debtors, financial goals, payables, and more can now be tracked at any time by company owners and management. Throughout the context of doing business, this will never be done before. To allow entrepreneurs to make fast, quality decisions will play a considerable role, contributing to more profitable companies.
- Less Paperwork and More Sustainability — No person prefers to bother with paperwork in the year 2020. It’s very time-consuming and costly to comply with paperwork. So that you can produce a copy with a tap, why make a printed copy? The benefit of the use of accounting software would be that all financial information is online, namely journal entries, income statements, and reports. Whichever invoice, record, or access is made, everything is stored in the cloud underneath encryption layers which is easily accessible by those with the proper authorization. In turn, you could also build and send invoices to your customers directly from the app, reducing the resources spent on printing and publishing the invoices, while still speeding up the payment process.
- Better Invoicing — Another of those accounting activities that any organization has to do, irrespective of company size or sector, is to produce an invoice. And while it is true that, depending on the type of transaction, the invoice type can vary, the method of producing an invoice is almost the same. Previously, individuals had been using Excel, Word, or just by hand to make invoices. Generally, the outcome was a poorly formatted invoice, which would possibly take numerous minutes to generate. Now if you’re a corporation that produces just five invoices a month, this isn’t a significant problem. However, if you generate 100+ invoices per month, most of which are recurrent, it would be a catastrophe to do it by hand. You could make an outstanding business invoice using some of the pre-made models in a couple of seconds with cloud-based bookkeeping software. You can also create and customize your invoice template and extend it to all your invoices. When you have generated your invoice, you could send it straight using the accounting software. All you have to do is enter the email from your client and press send. And you can give them a late payment alert with only a few clicks if your consumers or companies are ignoring your invoice payments.
- Real-Time Reporting and Tracking — Another of the top benefits of accounting software is probably real-time monitoring and reporting. All you must do is incorporate your online accounting system with your business bank statements to monitor your accounting data in real-time, and you will be able to track items like expenditures, revenue, and supplies in real-time. Accounting software provides you with a specific dashboard that helps you to monitor all the transactions and metrics you would like to keep a record of. This ensures that no more waste of time searching over something as simple as reconciliation with banks. You could do bank reconciliation in only a few easy steps using cloud bookkeeping software.
- Streamlined compliance with taxes — The fact that it assists with tax enforcement is one of the critical advantages of using cloud bookkeeping software. Let’s admit it no owner of a corporation wants to deal with taxes. That is where tools for accounting come in. It is super easy to collect the documentation and details needed for filing taxes by keeping precise accounting records, up-to-date financial statements, and reports. Additionally, advanced cloud bookkeeping software has built-in tax rules, which allows you rather than stressing about dealing with the IRS; you can concentrate on increasing your business. All you should do is choose your country, enter your business details, and the cloud bookkeeping software will automatically be based on your local tax laws, attach taxes to invoices, and other records.
Well, these are the top benefits of using cloud-based bookkeeping software for your business. Moving on, let’s discuss the features you should look for in the best cloud bookkeeping software.
Must-have features of Cloud Bookkeeping Software or Cloud Accounting Software
A top cloud bookkeeping software must provide at least below mentioned features:
Must-have features of Cloud Bookkeeping Software
- Simple UI.
- Manage Accounts.
- Auto Invoicing.
- Purchase orders, vendor payment.
- Banking integrations.
- Easy account reconciliation.
- Tax support.
- Overseas invoicing.
- Stock management and monitoring.
- Multi-currency support.
- Dropship order monitoring.
- Contact management.
- Expenditure tracking.
- Time tracking.
- Cash inflow & Cash outflow management.
- 24*7 customer support.
Would like to try a cloud bookkeeping service or cloud accounting software that offers all of the above-described features, and more?
Just give Matellio a try then! Aside from all the characteristics of accounting software.
To Sum Up
Swapping to cloud-based bookkeeping software, with all of these benefits and features, could also reduce the expense of bookkeeping and accounting. To install bookkeeping software or a server, you wouldn’t have to buy an expensive computer to allow everybody to view the very same data. All you need is a link to the internet, and these facilities can be accessed by staff out of their own devices.
Does your company or business use a cloud-based bookkeeping service? Not now, then what are you waiting for? It is the right time to incorporate cloud bookkeeping services in your industry. Schedule a call from one of our experts.
For further information, visit www.matellio.com.
Till then, happy reading. Cheers.
Originally published at https://www.matellio.com/ on January 28, 2021