5 Benefits of Using Cloud-Based Accounting Software for Small Businesses
Over the past couple of decades, the way most small businesses update their finances has observed a significant transition. Since storing everything from personal data to employee files on the cloud has become a new norm, companies are utilizing every feature of online accounting to systematize their business operations.
Running a small business isn’t easy itself and adding the burden of managing accounts side by side can decrease your efficiency. Moreover, it also distracts you from the audit files creating room for error, when you should be working on your brand instead. Thus, using cloud-based accounting software to keep your finances intact is always a good option.
In this blog, we’ll be discovering the top 5 benefits of cloud-based accounting software.
Difference Between Traditional Accounting & Cloud-Based Accounting
When it comes to comparing cloud-based accounting to traditional accounting, the advancement of technology always takes the lead. There are some major differences that set them apart.
Primarily, cloud accounting is more adaptable and instead of being restricted to a few chosen on-premises computers, accounting data may now be accessed from anywhere on any device with an Internet connection. Secondly, the cloud offers easy-to-use accounting software for small businesses compared to traditional.
You can even carry out multi-company and multi-currency transactions with a cloud. Next, unlike traditional accounting software, cloud accounting software automatically refreshes financial data and offers real-time financial reporting. As a result, account balances are always exact and human data entry errors are less common.
5 Benefits of Cloud-Based Accounting Software
While there are many advantages of integrating cloud-based accounting software to improve the efficiency and productivity of your business, here are some of the 5 best reasons to do so:
Balancing Payment Becomes Simple
As a business owner, you can find many challenges in your path but managing cash flow still makes the top. To turn it to simpler and more straightforward, instead of handling invoices manually, you just have to advance your invoicing procedure. Without cloud accounting management, you won’t be able to get your receivables under control which can have a crucial impact on your cash flow. By integrating a proper invoicing system, all your invoices will be replicated to the accounting software with its automated features.
Using automated invoice reminders, cloud-based accounting software can assist you in collecting the money that you owe to your partners or clients. You can also digitalize your invoices for frequently used or recurring payments to set them back from manual payments.
Custom Software Features
If your organization is expanding at a quick rate, it wouldn’t easy to manage because of the high volume of receipts and transactions, especially when you’re focused on different growth strategies. With the help of a connected app ecosystem, you would be able to select the best solution to handle your unique business challenges. Cloud-based accounting software even pushes crucial accounting data into the accounting system, making this tedious task less intimidating.
It even helps you incorporate expense management systems like receipt bank which uses optical character recognition technology for automating your manual data entry. This is particularly advantageous if you frequently find yourself buried in credit card receipts. The receipt is kept in the cloud after being sent into the accounting system, serving as your digital filing cabinet so that you can discard all your receipt without any hesitation.
High-end Data Security
If you’re looking for secure accounting software for small businesses then there is no better way to store your data than on cloud-based accounting software. For instance, when a hacker attacks an organization managing data traditionally, they are only going to steal a computer which would have all your accounting details. However, the biggest advantage of managing data using the cloud is that your data can’t be accessed by an unauthorized entity. You can always invite others to view your data but that would only depend on your choice.
Cloud-based accounting is also helpful in protecting your data from natural disasters so whether there is a fire or flood, your data remains safe. Accounting specialists using the cloud make frequent modifications to guarantee that the security and privacy of your data are always ironclad.
Ease Of Compliance
When it comes to cloud-based accounting software for small businesses, one of the core advantages is dealing with tax. Cloud platforms help both private as well as public organizations with tax compliance by generating precise financial statements, quarterly tax projections, and annual tax filings. By doing this, business owners can avoid under-reporting their tax obligations, which could result in audits or penalties, or over-reporting and overpaying.
Cloud computing systems also assist in ensuring compliance with all applicable tax laws by automating computations for both domestic and international taxes. To adhere to established accounting rules, several top cloud accounting solutions even automate revenue recognition.
Updating Data Real-time
Most finance and accounting software help companies handle data more efficiently. Similarly, cloud-based accounting tools also make real-time updates in terms of data security and data consistency so that you’re never behind.
You can make better judgements on the financial future of the company when you have a fully updated picture of your current financial situation, thus consulting with accounting and financial management specialists like Atxenon is always a fruitful option.
For FAQs
What is cloud-based accounting software, and how can it help my small business in the US?
Cloud-based accounting software is an online tool hosted on remote servers which are used to store your accounting details and other financial records on the secured cloud. It gives you the freedom of installing and maintaining accounting software individually on each computer.
Using cloud accounting software frees the business from having to install and maintain software on individual desktop computers. Cloud accounting solutions also allow employees in other departments, remote or branch offices to access the same data and the same version of the software.
How easy is it to set up and use cloud-based accounting software for small businesses in the US?
Setting up cloud-based accounting software is simple, all you need is reliable accounting software that fulfils all your requirements. However, when it comes to usage, the game is all about decisions. This software can automate all your repetitive or recurring tasks so that you can make informed decisions impacting the smooth sailing of the entire accounting system.
Can I access my accounting data securely from anywhere using cloud-based accounting software for my small business in the US?
With cloud-based accounting software, you can access your accounting details from any location, at any time. From your cash flow details to your investments, everything can be easily visible, whenever there’s a stable internet connection. In other words, it isn’t necessary to go to your company headquarters to access accounts.
