Benefits of Cloud Accounting

Since its inception, many businesses have reaped the benefits of cloud accounting. However, if you are using spreadsheets or server-based accounting systems, the thought of migrating your entire business finance operations to the cloud might well be daunting.

Author: Simon Murrells   |   Date: 12th October 2020

The good news is, migrating to the cloud doesn’t have to be difficult.

Before we look at the benefits of cloud accounting, let’s go back to basics and explore,

What is cloud accounting?

Broadly speaking, cloud accounting is a ‘software as a service’ (SAAS) business model.

You purchase a subscription to a particular cloud accounting software and, instead of installing it on a computer or hosting it on your server, the data is stored on remote servers owned by the software company.

It is those remote servers that are commonly referred to as ‘the cloud’.

How to access cloud accounting software

As previously mentioned, cloud accounting software Is not installed on your server or a specific computer within your business.

Instead you gain access to the software by logging in to your account online. Much like online banking, or even online shopping.

So, having looked at what cloud accounting is, it’s time to take a look at five benefits of cloud accounting for your business.

Benefits of cloud accounting

SAVE TIME

Modern cloud accounting packages like Xero, QuickBooks Online (QBO) and Sage are all designed to increase the automation in your business and reduce the effort needed to take care of your accounts.

Repetitive tasks like data entry, invoicing, generating payslips, stock tracking and regular reporting are easy to automate, leaving your team free to spend more time growing the business.

SAVE MONEY

The biggest advantage of implementing cloud accounting is that you don’t need to buy anything. No server, no dedicated accounts department computer, no installation costs.

But it goes further than that. Cloud accounting removes the need for any IT staff to carry out maintenance or updates to the system and you won’t need as much office space to store years of paper files. Which means your staff and accommodation costs are lower.

BETTER COMPANY INTELLIGENCE

Getting a real time, helicopter view of your business and its finances is tricky if you rely on server or spreadsheet based systems. Inevitably, the data you review will only ever be as up to date as the last time it was updated. By contrast, cloud accounting provides real-time information.

As a result, your teams can seamlessly collaborate whilst your management accounts and end of year accounting is quicker and easier than ever before.

FLEXIBILITY

There is nothing more convenient than being able to access your real-time financial information wherever you have an internet connection. What’s more, the mobile apps available for the market leading platforms are easy to use and include much of the information you would get from the desktop version.

As your business grows, you aren’t restricted by cloud accounting systems as you can add more users, additional functions and even integrate them with other systems within your business like stock control, despatch, online orders and so on.

SECURITY

Perhaps you’re wondering if all these benefits come at a cost to the security of your business finances?

You’ll be pleased to hear, that’s not the case.

In fact, quite the opposite. Thanks to online data encryption, the absence of financial information from computers that could be lost or stolen, a clear audit trail, cloud backups and automatic updates, your business finances couldn’t be safer.

Are you ready to find out more?

Accountancy Solutions are experts in all the leading cloud accounting software services. This means that we will help you find the perfect match for your business.

With experience of undertaking full implementation and migration projects, integrating cloud accounting platforms with existing systems like CRMs, and the in-depth knowledge to provide all the training you and your team need, plus 24/7 support, you are in safe hands when you choose us.

To find out more, book your free, no obligation consultation by clicking below.

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