If you are one of the millions of millennials, you’ll remember those dreary days when we had to sit for hours in front of our personal computer getting rid of extra stored data from the hard drive. What an absolute headache the whole process is. Business owners and especially small business owners have it really hard because they have to deal with this issue once or twice every year if they want to keep their business up and running from the same one-room apartment that they are working from. It gets really difficult, no doubt about that.
Managing storage while you have immense collections of data pouring in daily is not a child’s play. If you really wish to keep working like this, then you must make some foundational changes in the way that you do business. Firstly, you need to migrate from your computer hard drive to cloud accounting software. And just like that, all your problems relating to storage and managing of data will vanish within a span of time. Well yeah, it may not be as easy as it seems but even considering cloud accounting software is a great start for your business.
Once you start considering the prospect relating to a software that is heavily based on the cloud storage system, you would want to delve deeper into the mechanics of this and how it works. When you have gotten rid of all kinds of doubts from your mind regarding this, you would want to know the pricing and if it’s affordable or not.
All of this is a process and may not happen over a few days. For the transition to take place; you as a business owner need to trust technology as much as possible and you also need proper guidance throughout the process. In this blog, we’ll discuss this very technology and how it is beneficial for your business. So, let’s begin.
What is Cloud Accounting?
Accounting that takes place online using remote means is popularly known as cloud accounting. To explain it better and in a more comprehensive way, cloud accounting or cloud computing involves storing data and accessing that data over the Internet. Cloud is a word that is used synonymously with the Internet.
The imagery produced is that the Internet is a vast cloud of information that prevails in spaces around us but is not perceivable or tangible. The cloud helps you to take your business to a whole new level and puts it right on top with all the big names in the business world. It is a huge technological and functional reset but it is definitely worth every penny that is spent.
Cloud accounting is not very different from desktop accounting but there remains a key difference which puts everything that is done on a cloud accounting software, onto a cloud platform and then expands your database on it. Before cloud accounting software came into existence, accounting was heavily dependent on desktop-based accounting software. The main issue with this was a very limited access to the data that is stored by you and also owned by you.
There is a constant need to update the features of the software, even after a heavy installation fee. The overall investment into this software is huge and honestly, very unnecessary. Business owners have now realized the importance of having a cloud-based accounting system and a lot of them have made the leap from the traditional methods to this up-and-coming technological innovation.
How Does Cloud Accounting Work?
A lot of people are keenly interested in knowing how exactly cloud accounting software works. We have that information for you in the simplest terms. So, when the users sign up for an accounting software online, they are required to shift their business books to the cloud. This would help them to get access to their business accounts and records at any time of the day from any web browser or device.
It can be on an app from their cell phone or through the web browser on their laptop. Users may also connect the software to their business account which would help in a smooth flow of expense reports and transaction details from the bank account to the software without the need for manual data entry that takes up a lot of precious time of the business owners.
What are the Benefits of Cloud Accounting?
Getting Access to Real-Time Information
The ultimate need for speed would eventually bring every business owner to this pivotal element offered by cloud accounting software. You would want your company to move as fast as it can and for that reason a cloud accounting software helps you to get a real-time overview of your company’s financial situation.
When working with a desktop-accounting software you would have to spend a lot of time scouring through historical records of data from days or even months ago. Real-time access to data will not only help you to make big business-related decisions more accurately but will also help you in creating a steady future plan for your business.
Handle Your Accounts from Anywhere
You get 24/7 access to your business numbers and accounts with cloud accounting software. You have access to this information from any location, any part of the world. You just need to have the log in information that is exclusive to your company and a stable internet connection and you’re good to go. This would help in building stronger bonds between yourself and your employees; between yourself and your clients. Since getting access is so easy, organizing the data and working on presenting it in a systematic manner is also an option for all the users.
Facilitating a Paperless Environment
It is no surprise that the bigger the business, the more the transaction records and massive the clutter that is generated. You wouldn’t need to physically store any of your invoices, bills, expenses or anything when you are working with cloud-based software- mainly because everything is present and available online.
Every deal and every record ever made will be securely stored on your cloud for years and years together until you feel the need to delete them or get rid of useless information. Paper documents can be easily eliminated through this process and you wouldn’t have to scour through your belongings trying to find a single piece of paper that had some transaction details dating months back.
No Need for Monthly Software Updates
When you log in to the cloud accounting software that your business has invested in, you would immediately start using the latest version of the software. Unlike desktop accounting software, there is absolutely no need for you to sit and update your software again and again for every new feature that is incorporated into the software.
This saves a lot of your time and utility costs. You wouldn’t need to fix technical issues that go wrong in the software as the software provider is solely responsible for it. All problems that arise in the software are almost immediately taken care of by the software provider and this takes a lot of burden off of your shoulders.
A Secured Method of Sharing Data
Using cloud accounting software is a safe way of dealing with confidential information regarding your business transactions and dealings. You, as the owner, have to give access to whomever you want and only those who get access directly from you will be able to handle the data that is stored in your cloud software. The people who need urgent access to the data are your accountant, the financial advisers of your company, your bookkeepers and you yourself. You have the utmost control over who else gets access to your company records. This is a highly secured and quick way of sharing and updating exclusive information as it cuts down on the emails sent back-and-forth that anybody can get access to.
Live feed from Bank Account
There are many cloud accounting software that offer you live feed from your bank account when you link it directly to your company’s account on the software. You wouldn’t need to sit and manually type in all the bank statements that you receive as it gets directly updated on the software. When there is a live feed, information from your bank account will immediately make its way into your software without you having to deal with any of it.
This will definitely speed up the whole process of gathering and storing data and would also give you a precise overview of your bank balance. An updated view of your saved capital will help you take better company-related decisions that require large investments. You can be a better judge of company needs when you have easy access to the financial situation of your business bank account.