Benefits of Cloud Accounting Software for Small Businesses

For small businesses in UAE, the cloud represents digital transformation and growth. According to PwC, cloud adoption is expected to increase exponentially in the Middle East in the next five years[1]. With a clear trend of businesses adopting cloud technology in financial services, small businesses need to consider the benefits of adopting cloud accounting software to manage their finances to maintain a competitive edge.

In this article, we’ll explore:

• What is cloud accounting software?
• The benefits of cloud accounting software
• Increased productivity
• Better communication
• Automated accounting
• Data safety
• Customize scalability
• The future of cloud accounting

What is cloud accounting software?

Cloud accounting software, also known as online accounting software, is software that helps you perform accounting tasks. Cloud accounting software such as QuickBooks Online is based in the cloud and accessed via the internet, instead of being installed on your desktop computer. It allows small business owners to access their financial data including records of income, invoices, expenses, financial statements, and inventory records from almost any device because it is stored in the cloud via servers, instead of the user’s device.

The benefits of cloud accounting software

Consider the following benefits of switching to cloud accounting software to manage your small business accounting.

Increased Productivity

One of the biggest appeals of the cloud for mobile business users is the ability to be productive from anywhere. You are no longer tied to your office or computer. Simply log in to your cloud accounting platform from any internet-connected device including your laptop, tablet, or smartphone to access your business finances and increase productivity.

The ability to manage your company finances from anywhere in the United Arab Emirates or the world enhances your remote work capability and allows you to increase your productivity.

QuickBooks Online has a free mobile accounting app that allows you and your team to manage your business finances from your fingertips, anywhere, anytime. 

Better communication

As the world grows more connected, more businesses are moving to the cloud. Moving to cloud-based accounting software has the potential to open up a new world of fast, safe communications between your team and accountant which can greatly improve your day-to-day accounting operations. 

QuickBooks Online allows your team and accountant to collaborate seamlessly with real-time access to current data. 

Automated accounting

Some of the best small businesses stumble when it comes to bookkeeping and cash flow management, revealing an Achilles’ heel they can’t afford to expose. Fortunately, some excellent cloud-based solutions keep accounting manageable.

For example, QuickBooks Online automates accounting functions like invoicing and accounts payable and receivable. Data from sales transactions, business expenses, and inventory can all be automatically uploaded to the cloud. Automated accounting saves time and means no more manual data entry, which minimizes costly clerical errors.

Data safety

Cloud accounting software helps keep your sensitive financial data safe and secure in several ways. Once you understand the extent of physical security, backup and recovery, and risk mitigation these companies are prepared for, you’ll feel confident about your decision to migrate to the cloud.

• Physical safety: When you upload to the cloud, your records go to a server in a remote location. This can be literally anywhere in the world, putting sensitive data well out of reach of burglars and disgruntled employees. Almost all data centers are blessed with extensive physical security measures, including double-locking doors, steel cages around the machines themselves, and world-class fire suppression systems.
• Data security: Cloud servers also benefit from state-of-the-art data security. If you handle sensitive information and worry about hackers (as you should!), cloud storage offers you the very best in civilian data security. It also saves you the expense of installing and maintaining all that security on your own machines. QuickBooks Online uses industry-recognized security safeguards to protect your financial data including:
• Automatic data backups
• Encryption technology
• Password protection and multi-factor authentication
• Permission levels
• Audit trail 
• Always-on activity log
• Reconstruction of lost files: Imagine your office computer breaks. If the drive is damaged or corrupted, you could lose everything. Cloud servers, on the other hand, typically run your data across multiple drives. This lets them reconstruct almost any lost data by looking at what’s left on the other drives.

Customize scalability

Embracing the cloud means the freedom to scale your small business up or down quickly. If you are anticipating business growth, cloud accounting platforms offer the flexibility to scale and grow with you by providing advanced accounting features to meet your new business needs.

If you’re ready to embrace the wave of cloud accounting, start by assessing your small business accounting needs. QuickBooks Online offers several plans to suit different business needs and budgets depending on your stage of business growth. You can upgrade your plan at any time without incurring large costs.

The future of cloud accounting software

The future of accounting is shaped by advancements in technology including an increased investment in cloud accounting software and AI. The overall cloud adoption is expected to increase exponentially in the Middle East in the next five years driving strategic change and bringing disruptive innovation while unlocking new sources of value.

According to PwC’s Business Cloud Survey, 

Sign up for QuickBooks Online cloud accounting software or join a free 30-day trial to see how QuickBooks can benefit your business.

Article Sources

[1] https://www.pwc.com/m1/en/publications/cloud-for-financial-services.html

[2] https://www.pwc.com/m1/en/media-centre/2023/cloud-is-the-engine-required-to-drive-next-wave-of-innovation-financial-services.html