Work smarter, not harder, might seem like a mantra you told yourself during your uni days, but it’s what makes great businesses so great and it’s what cloud accounting brings to the party. Why put yourself or your employees through the torture of menial labour of manually inputting financial data? Not only will it take half a lifetime to get through work, but there are also chances that numbers will be misread and incorrectly filed.
Considering the fact that more small to medium-sized businesses are still crunching their numbers manually, you can only imagine the pile-up that occurs once your business finally starts to take off. Being swamped with backlog isn’t good for your business, especially when a simple switch can turn a backlog into a few extra hours a day for your accountant or accounting team.
That switch is cloud-based accounting
What is Cloud Accounting?
Cloud Accounting is a system that allows you to store large amounts of the details of your financial transactions and access it instantaneously. It’s typically safe, secure, flexible, and scalable, which is why so many businesses have migrated to the Cloud Accounting system to date.
It works by placing your data on servers. These servers are essentially massive hard drives, and your data is securely stored there and allows you to run reports that will show you what your accounts look like. Your online Cloud Accounting system can automate many business processes. One such benefit of an automated accounting system? Cashflow management and forecasting.
How Can Cloud Accounting Benefit Your Business?
With Cloud Accounting, automating cashflow forecast is easy and simple to do once you have the data of a year or more of your business’ costs throughout the year. This can then be automatically produced through your Cloud Accounting software, like with Xero. It will group all costs and revenue into a report. Expenditure costs are easy to predict and can be automated, creating a forecast estimation for your income takes strategy. Once this is done a report can automatically be generated to help you better budget and tackle deficit issues before they arise.
Many daily tasks such as automating cashflow forecasts can easily be handled with Cloud Accounting. Sending out invoices to customers, for example, and then reminders for payment, before it is finally set to a collections agency, is smart. Having this automated means that no payment gets slipped through the cracks, and, as anyone trying to manage a healthy cashflow for their business can attest, getting payment in on time is key to success.
Finding the Right Cloud Accounting
You will need to find the Cloud Accounting programs that work with your business. For accounting, a great option is Xero. Using Xero to automate cashflow can free up time, improve accuracy, and help relieve the stress of all of your employees. Getting set up can be challenging, but our services have you covered for that. You’ll be set up and have your accounting data transferred in no time.
How Do You Know if Cloud Accounting is Right for You?
It’s very easy to determine if Cloud Accounting is right for your business because the answer is probably “yes” with a resounding, “why haven’t you don’t it already!”
1) Manually Entering Backlogged Data is a Regular Occurrence
If you or anyone on your payroll are manually entering information to visualize your data, there is going to be a backlog. Manually inputting receipts and incoming transactions to prepare a cashflow forecast is not effective, nor necessary.
Backlogs are stressful, which means that employees are more likely to slip up from the sheer exertion, and are just plain bad for business.
With Cloud Accounting you can have costs and revenue automatically inputted into Xero, and benefit from the power of automation from there.
2) You Want to Improve Automation in Your Business
Automation is the future, and with Cloud Accounting, you can upload and use multiple programs that speak together. This is where the power of Cloud Accounting lies. When it is linked to other programs within your business it can automatically receive new payments, invoices, payroll, and more without any additional input necessary. Reports can be generated, your cashflow can be visualized and in turn better forecasted for the year ahead, paperwork can be automated and digitized, and so much more. You Want a System that is Always Up To Date
You never have to worry about your accounting software becoming out of date or worse, being abandoned. Cloud accounting is updated automatically. You don’t have to pay extra for new updates, which can be hard to predict for your cashflow forecast. Insteady you can enjoy a fixed rate, automated updates, and ongoing support.
You Need an Evolving Solution for Your Business
You can access your accounting software anywhere with Cloud Accounting, and you also can also customize it with a plethora or add-ons, and the space you need for data backup is scalable, so you can work seamlessly.
3) You Don’t Have the Budget to Manage IT and Security
If you don’t have the budget for a server, then chances you won’t have the budget to manage a team of IT and security experts to devise custom security systems to protect your data. That is another cost that can be offloaded by migrating to the Cloud.
Will there still be security risks? The level of security and encryption these firms implement means they can almost guarantee your security. You’ve got to remember it’s their business online, I mean who will do business with them if their accounting system has been hacked. Usually the security risk comes from your password and how this is kept secure around the office.
4) You Have a Team or Financial Department
If your business is big enough to have a dedicated accountant, then you should look to move to Cloud Accounting. If your business has a team or an entire department, then you should have started using Cloud Accounting yesterday. You’re missing so much potential by keeping things old-school.
How to Get Started with Cloud Accounting
Getting started with Cloud Accounting is easy. Simply choose a great program like Xero, and then benefit from our transfer and software set-up services. We can even help you manage it and track expenses so that you can focus more on improving your business.