5 Benefits of cloud accounting for your business
Cloud-accounting is still a fairly new concept to many business owners. It is based on the action of using cloud-accounting software, such as Xero or QuickBooks in order to manage the bookkeeping online. Cloud accounting offers, flexibility, as the accounting software is accessible from anywhere (using internet access). It is an online bookkeeping service. Additionally, the software uses a direct bank feed. The data is also stored on the cloud and is both encrypted and password protected, meaning that your data is in good hands.
What are the advantages of cloud-accounting?
1. The information is current
Cloud accounting software (Xero/QuickBooks), utilises a direct bank feed. Firstly, this means that the bank transactions are automatically downloaded into the software. The transactions can then be put into different categories/classes and the relevant Vat codes applied. Secondly, this means that the information is in real-time, as at the push of a button, they appear in your software. Moreover, having access to all your financial information, in one place, you are better equipped to make financial decisions.
2. Cloud-accounting data is safe
Unlike traditional bookkeeping methods whereby data is stored on a USB or external device. The data from your cloud-accounting software, is stored on the cloud. The information is also encrypted and password protected. There are third-party apps such as Lastpass that actually remember your passwords for you. Therefore, your key financial data is in good hands.
3. Set different levels of access
One of the many advantages of using cloud-accounting software is that you can set permission levels for different levels of staff. For example, the bookkeeper and accountant may require full admin access, yet, other internal staff may only need access to customer information. The advantage of this feature is that you can limit who sees what in the company.
4. Cost-effective up-keep
Traditional accounting software will need an upgrade from time to time. This cost the business owners thousands of pounds at a time. Unlike, cloud-accounting software which has a fixed monthly fee and the upgrades are included in the cost.
5. Third-party app integration
One of the true benefits of using cloud-accounting methods as opposed to traditional ones, is that there are third-party app integrations available. This makes working in the software a breeze. For example, if you want to quickly and effectively attach a picture of a sales receipt to a transaction by just taking a photo, an app such as ReceiptBank can be integrated. If you want to take direct debit payments with just the click of a button, why not use GoCardless?
Key notes
The use of cloud-accounting software in comparison to out-dated traditional methods is quickly taking over the way we work on our businesses everyday. And with the benefits far out-weighing the negatives, more and more business owners are seeing how they too, can benefit from the features. Not only can you save time by having current information, but you also save money with the decreased up-keep and upgrade costs.