Accounting tasks rank high on the list of a small business owner’s responsibilities. You don’t need to be an accounting expert, but you do need to understand a few accounting basics when you launch your company. Cloud accounting software has all the tools you need to handle most of the accounting tasks without any extra help during your company’s startup phase. Truly flexible cloud accounting software lets you give access privileges to your colleagues as well as experts qualified to help you make the right financial moves as your company grows.
How Cloud Accounting Works
In the past, business owners bought accounting software on disk and loaded it onto a computer set aside for accounting tasks only. Later, along with the internet came the ability to download software. Even though business owners didn’t need to buy disks anymore, they still needed to download the software onto a specific computer to use it. Today, you don’t need to buy a physical software product or download anything.
Accounting software like QuickBooks lives on “the cloud,” which is another way of saying online. All you need to access the software’s robust features is a username and password. You can access your cloud-based software account on your desktop or laptop computer, and on your smart devices like phones and tablets as long as you have an internet connection.
For a small business owner with numerous responsibilities, the fact that the software provider handles all the upgrades plus data security make this product worth considering.
Cost Effective Cloud Accounting Software
Instead of paying large sums of money for disks, downloads, and upgrades, you pay a nominal monthly subscription fee to use cloud accounting software. The low cost makes it possible for a wide range of entrepreneurs to use the software to track the financial health of their companies from day one. Any business structure or type can benefit from using cloud accounting software, including, but not limited to:
- Sole proprietorship
- Limited liability companies
No business is too new or too small to use cloud accounting software.
Scaling Your Business With Cloud Accounting
In business, scaling refers to growing a business without increasing costs. Here are some examples on how cloud accounting software can help you scale your company. Imagine you’re a freelance graphic designer. As your business grows and you get more clients, you don’t need to buy new software to store data on the numerous accounts, even if you started out with one customer and two years later, you have 1,000 customers.
Also, imagine you want to launch an email marketing campaign. You can sync low cost apps like Constant Contact and MailChimp to QuickBooks and send marketing emails to your current customer list. Using the accounting software and apps together, the cost of growing your email list should remain negligible, no matter how large the list gets.
Cloud accounting makes it possible to know how much money you have, how much money you owe, and how much money your clients or customers owe you with a few clicks. Having access to such information ensures you don’t miss out on the opportunities to make your business profitable.