Let’s explore the benefits of moving to cloud-based software for your business. Have you experienced juggling endless business invoices and receipts? Or, have you lost original receipts and then missed claiming those items as tax deductions?
Try accounting online! Cloud-based software for accounting is the smart choice in helping you manage both your business and personal finances.
What is ‘cloud-based’ software anyway?
Cloud-based software works outside your computer environment. The software and data is hosted, or managed, by a provider off-site. Off-site is often referred to as ‘in the cloud’. Data that is entered is then securely stored and accessed over the internet. You can subscribe to cloud-based software at a level to suit your needs and help manage your finances.
Accounting software choices include cloud-based programs such as Xero, QuickBooks and MYOB .
What are the benefits of moving to cloud-based software?
The key benefits of moving to cloud-based software include:
- time and cost efficiencies
- multi-user access on any device, anytime and anywhere there is internet
- information available in real time
- security of data
- information constantly backed up
- software automatically updated
- business continuity and
- ability to collaborate.
Are there data related benefits of cloud-based software?
Cloud-based software provides a number of benefits for your financial data. This includes:
- data not being stored on your computer therefore freeing up space
- financial data stored securely in ‘the cloud’
- accessibility to information
- automatic data back-ups
- data sharing with approved persons. For example, sharing data with your accountant in real time, saving time and money.
Cloud-based software has significant security embedded to protect sensitive financial data. Data can’t be compromised because it is encrypted using industry standards. So, by using cloud-based software, you can be sure your information is secure.
Trackable Records
Bank statements are commonly used to track income and expenditure. Most financial institutions in Australia and New Zealand can send these bank transactions to the authorised accounting software. Once set up, your accounting software will directly import the information from the bank feed. You will be spared the tedious process of importing the data and then reconciling.
Cost benefits of cloud-based software
You can experience the benefits of cloud-based software with a number of free software available. You do not have to pay anything to generate reports. With this live reporting you will always know how your business is tracking.
However, in some cases you may decide to upgrade. For example you may require a larger storage capacity or are dealing with more complex issues, like multiple payrolls. A cloud-based software subscription can help you manage such issues by providing the flexibility to:
- upgrade and meet your specific requirements or changing needs,
- decide what add-ons you require and pay for that component and
- cancel or change at any time.
Looking for help? Contact us today!
Once you have selected your cloud based software, why not get started with one of the many short tutorials available? It is essential you understand how to properly reconcile transactions to prevent a minor mistake accumulating over time.
Some frequently made mistakes involve:
- marking an invoice as paid and then reconciling payment again in the system,
- creating payments without reviewing the transactions, or
- wrongly claiming a wages expenses.
You can minimise these types of mistakes by understanding the process and working with your accounting team. You will also maximise the benefits of using your cloud-based software.
If you have questions about the benefits of moving to cloud-based software for your business, feel free to contact us.