Benefits of cloud accounting
There are many benefits of cloud accounting and for new businesses, starting fresh with a cloud solution is easy as signing up. Established businesses, however, will need to plan ahead for migration to ensure that critical data is kept intact, and everything continues to run smoothly.
Fortunately, major cloud accounting providers such as QuickBooks allow seamless transition from older, traditional desktop based solutions. Many business owners who migrated to cloud accounting technology have reported cost savings and greater efficiencies in day to day operations.
Cloud accounting has several benefits, such as:
- Secure Storage of Financial Data
Cloud accounting technology can provide a more secure method of storing financial information than desktop-based software. Data is routinely backed up to servers in multiple locations by the SaaS provider, and there are no physical hard drives or computers containing sensitive data that can be stolen. Since financial information isn’t kept on-premise, the risks of fires and natural disasters are also mitigated.
Cloud accounting software does the heavy lifting so you can spend your time on other important business tasks. Automatically sync your bank accounts so you don’t have to manually import transactions or verify expenses.
Small businesses often experience growing pains, which makes choosing software with future growth in mind a priority for many. Cloud accounting software allows businesses to purchase what they need and increase their spend as they grow. This includes adding more storage space, users, and more advanced features.
- Centralises your most important tasks
Several aspects of your day-to-day business operations, like managing inventory, invoices, payroll, and even portions of your customer relations management can all be tied into your cloud accounting software and many third-party systems integrate seamlessly with systems like QuickBooks.
Cloud accounting software helps by showing you things like how much tax you owe (even down to specific invoices) or how much you’ve paid overtime on a specific tax. Cloud accounting software like QuickBooks makes it much easier to compile the information you need to file a successful return.
Cloud accounting software not only gives you tools to customise your own reports, they even suggest reports for you based on the type of business you own.
There’s a report you can run for virtually every question you have regarding your business’ financial health. Wondering which of your clients haven’t paid you yet? Run an Accounts Receivable report.
The accuracy of your numbers is crucial and cloud accounting software does the calculations for you. It also maintains other necessary information, like inventory on hand, supplies on hand and which vendors you use for which products.