The move towards cloud accounting is nothing new. Businesses have been operating “in the cloud” for years. Even accounting businesses have been taking advantage of the cloud for years through virtual servers and online data storage sites such as Dropbox.
The cloud is nothing more than software and information hosted on the Internet that you can securely access from any Internet-enabled device.
So what’s so great about it from a bookkeeping perspective? Well, here are four benefits of using cloud-based accounting systems to do your business’ bookkeeping.
1. Software integration
Cloud-based software packages such as Xero and MYOB Live have taken cloud accounting to a whole new level. You can create invoices, pay bills, and generally do your bookkeeping wherever and whenever you have an Internet connection—even from a mobile device.
These programs also provide a highly auditable accounting system that’s extremely easy to use. Some even have a billing environment where you can pay your bills from your accounting system and automatically attach the receipt, eliminating the need to keep a paper copy.
And by using the apps and plugins available from third-party providers, you can make accounting (and auditing) for your small business even easier.
2. Access to real-time information
Probably the biggest benefit of making the move to cloud accounting is having access to real-time financial information. Not only can you create invoices and pay bills whenever you want, you can also update the information in your accounting system (and keep it up to date) with the click of a button.
And when it comes to running a small business, having access to real-time financial information is vital. It can help you avoid potential threats, and take advantage of upcoming opportunities.
3. Modern communication methods
Another huge benefit of using cloud accounting systems for your bookkeeping is the increased communication you have with your accountant.
With traditional desktop accounting software, you and your accountant rarely had access to the same information. You either had to send them a copy of your accounting files, or give them access to your computer. Not only was it a security risk, it also created nightmares over which copy of the financials was the correct one.
But in today’s cloud accounting environment you, your accountant, and anyone else who needs it can access the same set of financial information—all in real time.
This makes it easy to discuss your financial situation with your accountant. Instead of you having to visit their office (or them having to visit yours), you can talk about it over the phone or in a virtual meeting knowing you’re both looking at the same information.
4. Efficiencies through automation
Using a cloud accounting system, and enhancing it with the available apps and plugins, will give you a bookkeeping system that’s not only automated but also highly scalable. No more worrying about tracking paper copies of bills and invoices, or how you’ll get them to your accountant.
Cloud accounting can provide every small business owner with a powerful bookkeeping system that’s easy to use. Which means that instead or spending all your time and energy on getting your bookkeeping done, you can spend it on looking at the real-time information it provides and making better business decisions.
If you want to work with a bookkeeping firm that harnesses cloud accounting technology to add value to help you grow your businesses, get in touch with the MBC Bookkeeping team today.