COVID-19 has changed almost every facet of our lives. That includes upending the global economy and affecting the livelihood of millions.
As social distancing and stay-at-home orders become the new normal, businesses small and large are adopting new ways to ensure their survival. And despite lockdowns easing in some parts of the world, we are still being urged to work from home where possible. This means that remote work will continue for some time and may even become the norm for many companies.
From managing teamwork to overseeing accounting and compliance, this new way of working is challenging many businesses, especially those without the infrastructure to support it. Cloud bookkeeping software can address many of these remote work issues, for both the employees and the employer. It runs on remote servers, allowing users at both ends to manage accounting functionalities and day-to-day activities anytime anywhere. All data is automatically saved in the cloud and can be quickly retrieved.
5 Benefits of Cloud Accounting Software
Online cloud accounting software allows business users able to securely access their cash flow, financial data and stock systems which can help your business stay afloat during these turbulent times. Both employers and employees can access data simultaneously without having to be in the same location; many systems offer multiple user roles to allow different levels of access (such as viewing, limited editing, complete editing and total administrative access.)
The cloud-based accounting system can also be scaled up or down easily, has a fixed monthly subscription fee, and requires no upfront capital expenses.
Here, we outline five exceptional benefits of cloud-based accounting software.
1. It’s Easy to Back Up and Store Data
One of the biggest benefits of automated cloud accounting software is that it updates and backs itself up. This means there’s no waiting to buy a new iteration of your software. So if something changes in auto-enrolment or GST guidelines, cloud software will keep itself up to date. Unlike desktop accounting programs, these upgrades are included in your monthly subscription fee.
2. It Provides Instant Mobile Access
Cloud accounting allows you to check your accounts and key financial details from anywhere at any time. With a traditional desktop-based system, your software, data and accounts are all saved on a local drive, which limits the accessing of your financial information to your office.
Cloud-based accounting software is an effective solution to this problem. All your data, including records, are safely encrypted and stored on a secure cloud server, with no need to download or upgrade the software application. You simply log in anywhere with an internet connection and work from your web browser. This means you can always check on the status of your business, no matter where you are.
Since all your data is saved on a secure cloud server, you don’t need to worry about your information being hacked or compromised. Even if your computer crashes, everything remains saved on the cloud.
3. It’s Cost and Time Effective
At a time when many businesses are cutting costs, switching to an accounting solution that saves time and money makes sense.
Working remotely reduces IT costs and saves time by keeping you constantly connected to the business. Office-based systems, on the other hand, require an investment in IT hardware and maintenance. You also need a server to house the application software and related data, while an IT expert maintains the server and office network. Together, these can be quite the additional expense.
Cloud-based accounting software doesn’t require costly IT infrastructure, and you can easily access and manage it remotely at your convenience. It allows you to immediately approve payments yourself and send out customer invoices without visiting the office or having someone else do it.
This type of software is made with non-accountants in mind to make accounting easy for people without previous experience. User guides are also available.
4. It Makes Sharing and Collaboration Easy
Collaborating with colleagues and sharing data with clients is very simple when you’re working with the cloud. Using the office-based desktop approach, on the other hand, limits access to your accounts and makes collaboration difficult.
For example, if your accountant needs specific numbers, they would need to be emailed back and forth. With secure cloud accounting, everyone can access the same numbers simultaneously from anywhere.
5. It Reduces Paperwork and Increases Sustainability
COVID-19 has affected our lives in many ways. This includes rethinking our paper usage.
With digital communication tools (like Skype and Zoom) and cloud accounting software, you can do away with paperwork as the system tracks and store every detail automatically. Invoices can be emailed directly to the client, which saves the cost of printing and postage. It also hastens the payment process. Incoming bills and receipts can also be scanned and saved directly to your accounting software. Since your documents are all digitized and stored virtually, you also save on filing space and storage costs.
In order to survive the unexpected, your business needs to be able to adapt to the “new normal” and make necessary changes. Switching to a cloud-based accounting and compliance solution not only ensures the security of your financial data but helps you save on business operating costs.