The Benefits of Cloud Accounting
Over the past few years, cloud technology has caused a major revolution in our daily activities. And cloud accounting was not left out. Businesses now enjoy the full functionality and reliability of traditional desktop accounting systems with extra benefits that only come with cloud accounting.
A Thrive Financial cloud accountant will provide more effective methods of operating and managing your business financial records. It will radically change how you prepare invoices, manage your payroll, record purchases, and other financial records.
Many businesses are migrating to cloud accounting because of its additional benefits. So, it is essential to hire a Thrive Financial cloud accountant who will help you smoothly manage your accounting records on cloud software. Work smarter and more efficiently!
Cloud Accounting. What Is It?
Cloud accounting is the keeping of your business financial records such as income, expenses, liabilities, and assets online. Your financial records will be encrypted much like a bank’s, and only authorised persons with the login can access them. In the early 2000s, many businesses started migrating to cloud accounting, and the numbers are continuously increasing.
How Does Cloud Accounting Works?
If you want to use cloud accounting to keep and manage your business financial records, you will subscribe to one of the many online accounting software like Xero, Quickbooks, Sage just to mention a few. Once that is successfully done, you can access your online account anytime on any browser or through the mobile app. Many business owners link the accounting software to their business bank account, which allows the automatic flow of banking transactions to the online books.
Problems with traditional accounting software
- The data in the system isn’t always up to date
- It only works on one computer and data gets moved from place to place, for example, on a USB drive – this is not secure or reliable
- Only one person has user access which can mean key people can’t access financial and customer details
- It’s costly and complicated to keep backups (if they’re done at all)
- It’s expensive, difficult and time consuming to upgrade compared to cloud accounting software, which updates automatically
Comparison Of Some of The Cloud Accounting Software
In this context, we will be looking at three cloud accounting software platforms and which one is more suitable for your business.
It is one of the best online accounting software for business owners. You can locally install it. But, it is suitable for mid-sized business that wants online accounting software to manage their finances seamlessly.
It has over 130 reports and 200 plus integrations with limited users and no email support. But, if you want reliable online accounting software with strong features and good reporting, choose QuickBooks.
If you own a medium to large business and want robust cloud-based accounting software, Xero is what you need. It is budget-friendly and supports unlimited users without any extra cost. It has limitless users and over 800 integrations. The mobility of your cloud-based accounting software will be increased when you choose Xero. It has limited tax support and no phone support.
Sage is suitable for medium to large business owners with complex accounting tasks. Although it is a locally installed accounting software, it allows multiple integrations with other business software. The advanced features of this software are cash flow forecasting and solid inventory investment. It is very Customisable, with over 165 reports. But it has poor customer support, outdated UI, and limited integrations.
Benefits of Cloud Accounting
- It Is Well Secured
The security vulnerability associated with traditional business accounting systems is overwhelming. To back up your accounting systems with this method can be problematic and expensive too. It is also possible to lose data and never recover them.
But cloud accounting offers a secured offsite storage system with automatic data backup. There is nothing to worry about if you lose your IT hardware accidentally or due to theft or violence. All your data will remain safe and secured and can be accessed through your cloud system. It is less expensive to operate than the conventional ways.
- You Can Access Your Records Remotely
It is now possible and easy to access your business accounts and finance records remotely, even while on the go. The conventional ways only allow you to do these at the office. You have limited access to your financial records because they are only on a local hard drive in your office.
When you migrate to cloud accounting, all these restrictions will not be effective again. Because of the encryption of your data and records stored on the cloud, you do not need to download any software to access your financial information. If you have an internet connection, you can log in for your browser or smartphone and access your business status remotely.
- It Is Less Expensive
With cloud accounting, there will be no need for a physical presence compared to a desktop-based system. The in-house IT support will no longer be required as it can be done via a phone call, saving floor space and staffing costs. It will liberate you from the stress of upgrading servers and license renewal while your systems will be automatically updated. You and your staff can access your cloud-based accounting system from any computer, making it possible for staff members to work remotely.
- It is Customisable
The accounting need of every business is peculiar, so it is essential to choose cloud-based accounting software that can be Customised to suit your business needs. Some software offers tailored processes and workflows that will match the operation of your company. So, it is easy to build customised dashboards that offer an at-a-glance view of crucial metrics and other records for each user. If you want, you can add specific company terminology and corporate branding
- Integration with other Business Platforms
There is cloud accounting software that allows the integration of business applications with the same central database. Your accounting needs will increase as your business grow, and the addition of modules that will handle all aspects of your business will be easy with cloud accounting. You can easily manage your business marketing, inventory management, eCommerce, and payroll tasks on your cloud account. It will be easy to view accurate financial data of your business in real-time because all these systems work from a central database. Connecting your business with online invoicing and payment platforms is easy with cloud accounting and get all platforms talking to eachother.
- It Makes Tax Compliance Easy
Cloud-based accounting offers all business owners an easy platform for producing accurate financial records, tax estimates, and annual tax returns in real-time. It will help you to avert under-reporting tax liability, which may result in audits or fines- Or over-reporting that may lead to paying too much. The automation of domestic and international tax calculations on cloud accounting software ensures easy compliance with all appropriate tax rules. You can even automate your business revenue recognition to comply with authorised accounting ethics.
- Scalable Business Insights
As a business owner, cloud accounting will offer an opportunity to learn new business insights that will move your business forward into the future. The flexibility of cloud accounting software allows integration with other cloud-based systems, making it possible to connect with the entire workload of your company. It provides you with up-to-date reports on all aspects of your business in real-time. With the knowledge of accounting systems integration with your CRM, you will gain new business insights that will help scale your business.
Cloud-based accounting platforms offer automated accounting processes and quick access to accurate financial data, which reduces time wastage in the manual entering and checking of data. Your accounting function will become more efficient, thereby boosting the effectiveness of your business. Meeting up with deadlines will be very easy with the accurate financial data and automation that cloud accounting offers. With the availability of accurate data and up-to-date financial record in the entire organisation, making decisions that will improve the efficiency of your business by staff will be easy.
- Real time data from your Accountants on Weekly basis
Every business owner requires a regular collaboration with his accountant to maintain up-to-date financial records, especially in filing end-of-the-year tax returns to the Revenue. A Thrive Financial cloud accountant will save you the stress of time wastage with your manual accountant and saves you more on costs. With Thrive Financial cloud accounting services, you and your financial advisers will have a centralised online ledger. It makes it possible to have a deeper and more beneficial client/accountant relationship because you will discuss your financial management processes in real-time with a Thrive Financial cloud accountant.
- Upgrade as you grow
Enjoy the flexibility of purchasing what you need, when you need it and upgrading your plan as your small business grows. Simply add more storage space, users, and advanced features as you need.
Gone are the days of downloading software and upgrading with every new release. With cloud accounting software, simply subscribe and access the latest version immediately.
It does not matter whether you are a startup, small, medium, or large business enterprise, migrating to cloud accounting can increase the financial performance of your business. Thrive Financial is available for your day-to-day transactions, automation, financial processes acceleration, and ensuring efficient compliance with tax regulations and accounting rules. With Thrive Financial accounting services, you will not need any investment or management of desktop-based software and hardware. You and your staff can remotely access data, approve transactions, and collaborate.
There are significant benefits that Thrive Financial cloud accounting services offer over manual desktop-based or spreadsheet-based accounting. Leading cloud-based accounting software provides accounting task automation, reduces manual input, and accelerates financial close practices. So, accessing financial data and collaboration by staff members can be done remotely.
Talk to us about moving to cloud accounting
Are you beginning to see the benefits of a cloud accounting approach for your financial management?
If you are currently using a desktop-based accounting system and want to see first-hand how cloud accounting can benefit your business, please do get in touch for a demo.
Thrive Financial offers full service online bookkeeping and accounting systems setup all wrapped in a tidy package. Check out our services or if you would like to chat with us about how we might be able to help.
We want to help and if it is not the right time now for your business to move to cloud accounting after a chat you will walk away with some useful information, regardless of whether you make the move or not.