Gone are the days when you needed to physically visit your accountant to get a rundown of your business financial records. With the help of cloud computing, there are now virtual accounting options for business owners. According to Goremotely.com, 64.4% of small business owners now use accounting software instead of an accountant.
What exactly is cloud accounting?
Cloud accounting is the practice of keeping your business financial records online. This includes your business expenses, income, assets, and liabilities. When you use a cloud accounting solution, you can save all of these on a secure server.
How does cloud accounting work?
With cloud accounting you can quickly move your historical financial records to a web server. When you transfer your historical business finance records, it will be stored on the cloud and can accessed with a secure login. In cases where you have years of historical excel data on your server, you can easily transfer this to your cloud accounting software.
Here are some reasons that cloud accounting is a cost-effective choice for your Bromley-based business.
Save your important files securely in the cloud
When you switch to using cloud accounting software, you might be concerned about transferring sensitive financial data. What makes cloud accounting software a great option is that it is secure. Your data would be safe in the cloud because even if someone were to steal your laptop unless they have a login to your account, they won’t be able to access your files.
Most cloud accounting software has a 2-step authentication security process to keep your account secure. With multiple security layers in place, it makes it difficult for someone to access your accounts.
Save time with automation
Everything tedious about the accounting process, such as generating invoices, managing payroll and, chasing payments, is automated with a cloud accounting solution. This makes it easier for your teams to focus on other things outside of ad-hoc accounting tasks.
Automation also means you can easily:
- Integrate with HR operations
- Integrate with payroll applications
- Generate important HMRC documents
No room for errors
With traditional accounting methods, there is always a risk of human error. However, when you use a cloud accounting solution, everything is automated, and this reduces the risk of errors.
You can collaborate with accounting professionals
Even though you might have a fully equipped cloud accounting solution, you will still need the help of an accountant to work through your business accounts. One of the benefits of using cloud accounting software is the ability to share your reports with your accountant anytime. This comes in handy at critical times of the year, such as right before you need to submit your self-assessment form to HMRC. You will undoubtedly want to ensure that your accountant has gone through everything before submitting your income and expenses for the financial tax year.
If you don’t have access to a full-time accountant, most cloud accounting software will give you access to a bookkeeper or accountant as part of their package. This will ensure that you get the support that you need without paying for a full-time accountant.
Link your business bank accounts
Since cloud accounting offers an automated solution, it only makes sense that you link your business bank accounts so that you won’t have to manually record your expenses in the software. As a busy CEO, you probably won’t have much time to do a lot of data entry, and that’s what you eradicate when you opt for a cloud accounting solution.
Work from anywhere with a wi-fi connection
When you opt for cloud accounting software, you can work anywhere as long as you have a wi-fi connection. However, as a business owner, you will need to check your financial details at crucial points of the business development journey. For example, let’s say you are working on an investment opportunity and need to ensure that you can run numbers with your accountant before you go into an important meeting; once you have an internet connection, you can do all that and more.
Use interactive dashboards to showcase your financial standing
Most cloud accounting software will allow you to set up interactive dashboards that show financial information such as who owes you money, bills that will soon be due and cash flow. This helps to ensure that you can keep up to date bills, so you never miss a payment.
Automatic updates and backups
All cloud accounting software comes with automatic updates and backups. This means that any changes you make are saved automatically in the cloud and backed up too for next time. So rather than waiting for software developers to update the features of your accounting application, it will be done automatically and for free too.
Give access to multiple users and set permissions
Most cloud accounting software will allow you to let different people manage the other elements of your business. This means you can set permissions so that various departments can access the data that relate to them. So, for example, you can ensure that the HR manager can access payroll.
With most cloud accounting software, you will have a community of like-minded professionals you reach out to if you need support. When you have a chance, sign up for community events and chat with other business owners using the same cloud accounting software.
Get your business off the ground with cloud accounting
There are so many reasons why you should consider using cloud accounting software. Not only is a cloud solution a cost-effective solution, but it’s also a secure and efficient way of running your business. With such a time-saving solution, it means you get to run your business on the go and make smart decisions that will help your business thrive.
When you can access your financial data on the go like this, it opens up a lot of time to focus on the essential things. For example, you can run things remotely from your home and have meaningful conversations about the growth of your business.