Running a business or a non-profit has its challenges, especially if you’re expanding. You may find yourself overwhelmed and in need of help in the accounting department as you try to keep up with all the invoicing, financial reporting, and data entry, while you keep using your spreadsheet. The solution is simple: cloud-based accounting.
Cloud-based accounting systems have been around since the early 2000s. Using this system, you can seamlessly update your invoices and track your expenses. You or a team member can also quickly generate financial reports and set up notifications. In this article, you will learn all about cloud-based accounting and its benefits
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What Is Cloud-Based Accounting
Conventional accounting software is desktop-based and has many drawbacks, such as restricted data access, continuous software updates, and recurrent cost of backup for your financial information.
On the other hand, cloud accounting offers the same functionality, but you do not need a desktop application. You log in online and use an updated online solution with your data securely and safely stored on a cloud server. Many cloud platforms also have an open API that you can use to connect your existing system with third-party software.
Who Uses Cloud-Based Accounting
Cloud-based accounting software is the way to go for non-profits, small businesses, and enterprise companies. According to Flexi, the cloud-based accounting market is estimated to grow to $4.25 billion by 2023, with 67% of accountants preferring cloud computing over traditional software alternatives right now. Currently, 58% of large companies use cloud accounting, while 78% of small businesses rely on cloud technology.
Why You Should Use Cloud-Based Accounting
If you’re looking for an easier, more efficient bookkeeping process, opting for a cloud-based accounting system is your best bet. Cloud-based systems save time and are more accurate than a do-it-yourself system. Here are some reasons why you should use cloud-based accounting:
Time Savings with Automation
If you have the right cloud-based accounting software, you can set up automatic workflows to save you time. For example, you can set up a workflow to automatically pay a specific vendor on a particular date. You can also set up the software to send recurring invoices to your clients.
View Current Information
Cloud-based software can connect to your bank accounts and help monitor sales, expenses, and inventory. If you enter data regularly, you’ll have access to meaningful, real-time information.
Access Your Data Anywhere
Cloud-based accounting software gives you the freedom to get your financial data anywhere you have an internet connection. Logging in to the software and checking your data will ensure you stay on top of your financial situation.
Improved Collaboration
Cloud-based accounting software is an excellent solution for businesses and organizations because it eliminates the need to compile financial documents for your accountant. They can access your financial information anywhere as long as you set it up for them. You also control your employees’ access to your software, so their responsibility is specific to certain tasks.
Enhanced Accuracy
If you have your financial information in one place, you can get accurate reports without worrying about formulas and shortcuts. This software also saves you from the hassle of learning complicated accounting practices, especially if this isn’t your area of expertise. Just enter your income and expenses, and have accurate reports in just a few clicks.
Top Benefits from Cloud-Based Accounting
Cloud-based accounting is an excellent solution for businesses, non-profits, and other organizations because it’s affordable, easy to use, and scalable. Here are some of the other benefits of using cloud-based accounting:
Exceptional Information Security
With the cloud, data is stored online, like on a virtual hard drive. Cloud-based accounting software also provides airtight data privacy and security. Not only do you protect your information from natural disasters, but you can assign users with different levels of access. For example, some users can only view, but they can’t edit.
Paperless
If you’re one of the unlucky ones who have to deal with paper receipts, invoices, or bills, it’s time to get a cloud-based accounting system to manage your finances. It will save you a lot of time not having to deal with the hassle of manual errors. You can also protect your data from being accessed by someone with malicious intent by using encryption.
Easy Collaboration
Collaborating with your team has never been easier. When you’re working in the cloud, it’s easy to share data with those around you. The old way of doing things meant sending the files through email or couriering USB memory sticks to your accountant. Now, you can give them login access to real-time accounting data whenever they need it.
Customizable to Meet Your Requirements
You don’t have to settle for traditional accounting software when you can customize your experience to suit your specific needs. Cloud-based software gives you the power to integrate other solutions into your ecosystem. That way, your team can access invoices, customer engagement, and sales in one application.
Let LTD Global Help
If you’re looking for someone to help you with your cloud-based accounting, LTD Global is the company for you. We’re a local company with a global reach, and we’re happy to provide our expertise and experience in accounting to support your growing requirements. Let our talented team customize solutions that can help you achieve your goals. Let’s talk.
Sources:
Why Is a Cloud-based Accounting Migration the Right Choice for PAOs?, IFAC.org
How Cloud-Based Accounting Software Can Benefit Your Business, DuctTapeMarketing.com
https://ducttapemarketing.com/cloud-based-accounting-software/