Jun 21

The key benefits of cloud accounting

With the new financial year upon us, have you considered switching to an online accounting system?

The benefits of cloud accounting are numerous for most small businesses – and the reasons for switching go beyond pure business reasons; cloud accounting is also a smart lifestyle decision. 

So, what better time to make the switch than the beginning of the new financial year? It may seem a little daunting at first but conversion to the cloud is relatively easy these days and the benefits of cloud accounting are too numerous to ignore.

The following are the key reasons to make the switch…

Cloud accounting benefits

  1. Better decision-making and management

Most importantly from a business point of view, the cloud accounting benefits allow you to keep on top of your finances with up-to-the-second, real-time information. This helps you make well-informed decisions to improve your profits and manage your cash flow.

  1. Time-saving and business-growth focus

Cloud accounting also reduces the time you, as the business owner, need to spend on tedious, time-consuming tasks. This frees up your time and allows you to concentrate on the important task of growing your business.

  1. Daily bank feeds save time and improve accuracy

A bank feed imports your latest banking, credit card and PayPal transactions directly into your accounting system daily. It allows you to pull data directly from your financial institution and gives you a real-time snapshot of your business.

The entire process is automated, which saves countless hours of data entry. You just need to tell the system what the transaction relates to and it takes care of the rest.  Pulling the data directly from bank statements means no duplicates, no incorrect transactions, and no missing entries.

  1. Get paid faster and do business on-the-go

Another benefit of cloud accounting systems is that you can access them anywhere, anytime. Simply log in to get a real-time view of your cash flow wherever you are; you can even send online invoices to your customers and get updated when they’ve been opened.

As well as getting paid faster and reconciling your debtors in seconds, you can be sure that you are always working from the right accounts – as one centralised file is updated to the second. Information can be shared as needed, with your accountant, bookkeeper, and all of you can be working from the same real-time accounts.

  1. Spread and save on costs

Online accounting systems use a subscription model, which allows you to pay a monthly fee.  Not only does this spread the cost over the year which is better for cash flow; it often costs less than the usual update for proprietary software.

  1. Fewer security concerns

Online accounting systems are often more secure than systems sitting on your computer. The major accounting software providers have many servers based in multiple locations continually backing up your information. 

An online accounting solution means that if your computer dies or is stolen, you still have access to all of your data.

Ready to enjoy the benefits of cloud accounting?

Whether you are starting a new business or developing an existing one, we strongly advise that your accountant is involved in choosing the right cloud solution.

A financial expert who is proactive in your business will suggest providers that best suit your needs and will set up, or help you convert, your financials to your new online accounting system.

With the new financial year almost here, it’s time to get ready!

Contact MBC bookkeeping to start enjoying the benefits of cloud accounting and building a better life for you and your family.