Business processes are becoming increasingly automated and digitized in a bid for increased efficiencies. That includes bookkeeping, with cloud bookkeeping becoming a standard business model.
But what is the cloud and why it is so important to bookkeeping?
The accounting software we’ve used for decades and double-entry bookkeeping methods used for centuries have helped record and track money flow. So, how does traditional bookkeeping differ from cloud bookkeeping?
Bookkeeping software is traditionally desktop-based, meaning it’s installed and run from a computer hard drive. This presents several drawbacks, including:
Cloud bookkeeping services work like the desktop variants but without their drawbacks.
Cloud bookkeeping has been widely adopted and is substantially impacting the business environment by offering many benefits.
There are many good reasons why your business should embrace cloud bookkeeping.
Yes, you can link your bank accounts to your accounting software. This is probably its biggest advantage. The software directly pulls in transactions from your bank, thus saving a lot of time in uploading bank statements.
This cloud system captures all debtor and supplier invoices and always keeps your financial information up to date. This quick bank reconciliation provides a more accurate view of your bank balance, thus enabling you to make swift decisions and better your business.
When your accounts are completely digitized, you get real-time reporting that allows you to work from anywhere. This, in turn, makes extended travel much easier. Cloud bookkeeping services give you a real-time overview of your cash position, which is vital when you are planning future spending and making huge financial and strategic decisions.
Now that you have access to live financial information, you can create great management reports with the push of a few buttons. Your cloud bookkeeping system comes with strong reporting tools with whose help you can create graphs, key metrics, variance reports, and other financial snapshots to create your company’s financial dashboard. You can then customize the dashboard so that all your key stakeholders can easily track the company’s performance.
When you log into your cloud bookkeeping service platform, you always have the latest software. This saves you the time and expense of costly updates. In addition, you don’t have to worry about security fixes.
You can easily access your account without using a USB or having to maintain an email thread. You, your advisers, accountants, and others you designate can securely access your financials in real-time.
Data encryption and instant data accessibility allow you to use your key information without barriers. No more worrying about your computer crashing, or your data being erased, stolen, or being corrupted on cloud servers. The security of your accounting data is an important service that cloud accounting firms provide that.
Your company can only grow if the owner has time to work on things other than gathering and analysing financial data. Automated finance functions can save you a lot of energy and time since everything is captured automatically.
Digital uploading of source documents saves time on audit queries. Everything being paperless eliminates the hassle of the invoices and receipts that make a mess of your desk and wallet, respectively. Cloud bookkeeping services save a lot of time and mental bandwidth.
There are many payment apps that can easily be linked to your cloud bookkeeping. This will allow you to simplify and keep track of payments, including payment of taxes. It also allows your customers to make automatic payments that go through quickly. In turn, it reduces your admin work. Automated payments come with many benefits.
Whether you are a start-up or an established business, cloud bookkeeping is transforming business by changing the way you deliver services and collaborate with clients. Imagine checking your books on your phone or tablet, even on the go. You can plan a better future for your company and its finances. Use this new technology to make your entrepreneurial life easier and more effective by spending time doing something better than just tallying your finances. Have more questions about cloud bookkeeping? Our customer service will be glad to be of assistance.
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