Before the cloud came into the picture, accounting records were mostly stored on a desktop. Thus, managing the day-to-day bookkeeping required a person who could record transactions, pay bills, as well as make invoices for the clients. In many companies, such tasks used to get postponed to the end of the week or month. The main reason behind this was that business owners used to prioritize serving the clients over spending hours on bookkeeping and accounting.
Such a scenario brought a lot of problems for the company when the tax period rolled around. There were issues in tax planning, and many errors used to crop up. Fortunately, with the introduction of cloud-based accounting software, the headache of managing receipts, bills, and invoices has reduced drastically. Here, we would be discussing the advantages of having a cloud-based accounting software for your business.
1. Records the Business Expenses Easily
Unless a business records the expenses as they occur, one can forget or lose track of the expenses while preparing the tax return. Here, cloud accounting software comes to the rescue as it allows one to keep track of the business expenses. Most cloud-based accounting programs connect with the business credit card and automatically download the transactions as they occur.
With cloud accounting software, one can easily take a photo of the bill or receipt, mail it, and save it as a PDF. These receipts can be easily attached to the expenses in a few seconds.
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2. Helps you Work on the Go
Being an entrepreneur gives a lot of flexibility and freedom. With desktop-based accounting software, it becomes difficult to maintain the bills and invoices if you travel away from the office. However, with the help of cloud-based accounting software, you can pay bills, invoice clients, or access your financial reports from anywhere and at any point in time.
3. Software Updates are Simple and Fast
Initially, working with accounting software involved purchasing and installing an expensive software suite. Every time a new version was introduced, business owners would have to budget for the new update or simply continue with the old version. Also, the business had to purchase additional licenses for granting access to multiple people in the company.
All this has been simplified by cloud accounting, and one no longer needs to worry about installing software or updating it to new releases. One can access the software with the help of an app or a web browser. Updates and backups are taken care of by the software provider, and you do not need to hire any additional person for IT.
4. Creates a Seamless Experience with Additional Features
Many businesses use different software solutions or apps to get their accounting in order. In such cases, it becomes crucial that these apps complement each other as well as the accounting software. This ensures a seamless user experience and also saves a lot of time. In desktop-based accounting software, having this benefit is quite difficult.
In cloud-based accounting software, you can easily achieve this and have a great user experience. Additionally, one can even include additional features, such as payroll, online payment acceptance, sales tax reporting, scheduling, project management, and so on. With such add-ons, you save a lot of time that is otherwise spent on these pesky administrative tasks.
5. Collaboration with the Team and Clients becomes Easy
With cloud accounting, it becomes easy to share data and information with the accountant or other team members. This enhances collaboration and security while saving a lot of time. Many times, the accountant might require a lot of information to arrive at a particular conclusion. In such a scenario, it takes a lot of time and effort to take out the information and decide.
Using cloud-based accounting software, you can easily share the required information with your team or clients and make instant decisions. Whether investing in new equipment, purchasing real estate, or signing a new contract, cloud computing helps you access real-time financial information anytime.
In case you are still on the traditional desktop system for business accounting, it is time to consider moving to cloud computing. This would make your financial management better and more efficient. This way, you would be able to focus more on the core business goals, while improving the long-term success of the company.