Cloud accounting software is similar to traditional, desktop based solutions, with the difference being that it is hosted on remote servers. Data is sent into the “cloud” where it is processed and stored. The benefits to the end user include access to real time data from anywhere with an Internet connection, and from any device–including laptops, smartphones, and tablets. Employees have greater visibility within an organization and can collaborate more effectively.
Benefits of cloud accounting:
For new businesses, starting fresh with a cloud solution is easy as signing up. Established businesses however, will need to plan ahead for migration to ensure that critical data is kept intact and everything continues running smoothly. Many business owners who migrated to cloud accounting technology have reported cost savings and greater efficiencies in day to day operations.
Here are the top benefits to consider when researching cloud accounting solutions:
1. Safe storage of financial data
Cloud accounting technology can provide a more secure method of storing financial information than desktop based software. Data is routinely backed up to servers in multiple locations by the SaaS provider, and there are no physical hard drives or computers containing sensitive data that can be stolen. Since financial information isn’t kept on premise, the risks of fires and natural disasters are also mitigated.
2. Sync data automatically
Cloud accounting software does the heavy lifting so you can spend your time on other important business tasks. Automatically sync your bank accounts so you don’t have to manually import transactions or verify expenses. If 84 percent of businesses using cloud software are cutting their application costs — it’s a good indicator that with the adoption of online accounting, you can too.
3. Multi user access
Once you reach a point where your business is looking to outsource specific tasks, using cloud accounting can help scale in a cost-effective and controlled manner. The multiuser feature of cloud accounting means you can give different people access to your financial records and bookkeeping process, which they can access remotely. This streamlines workflow, and allows you to ask your advisor or accountant questions directly, all based on the most up-to-date versions of documents. The multiuser feature makes for quick communication, team collaboration and less back and forth.
4. Data accuracy
Cloud accounting programs promote accuracy by streamlining the data-importing process and eliminating double-entry mistakes or other human errors that might occur.
5. Prevent unauthorized access
The same way you don’t want strangers accessing your pictures or your Google documents, unauthorized users in your accounting software is even more disheartening, and even dangerous. Login credentials for your cloud accounting software enable only designated people to view and access your financial information. Data is completely private and protected.
Connect your bank accounts and credit cards, sync transactions and access operational data from anywhere. If your accounting is taken care of, you can spend the time you save doing things you like — like scaling and growing your bottom line.
Lodestar Advisors is a firm focused on tax saving strategies and accounting automation techniques to facilitate business growth for their clients. They are well versed in cash flow projections and business planning. Call for a free consultation.