How Cloud Accounting Can Boost Your Business

  • 03 May 2022

How Is Cloud Accounting Used?

More businesses in America, Europe, and Australia are relying on internet accounting services to keep track of their finances.

Bookkeeping software has been around for decades now. Combine this with the storage capacity and the tools the Cloud provides, and you get an online software used to manage and balance accounts. That is, in shorthand, cloud accounting.

This means information is no longer stored in a company computer’s hard drive, but on remote servers, from which the user can also run basic financial analysis tasks with software like QuickBooks, Sage 50cloud, and Zoho Books.

So, how does moving bookkeeping from the desktop to the internet help your business grow?

The Benefits of Connectivity
Lo and behold, information at the moment in a connected world.

-By working with data stored in the Cloud, you can say goodbye to the constant coming and going of e-mails with information updates between advisers and accountants. Both company personnel and clients can have safe and secure access to accounts (given that the user grants permission), which translates into more time saved and a reduction of the margin of errors during the work process.

-If it’s efficiency one’s looking for, then the possibility of accessing live bank feeds from many cloud accounting platforms is vital. This cuts out otherwise time-consuming tasks like the manual input of bank statements into the system or uploading files from a banking portal.

-As aforementioned, since the information no longer remains exclusively on the hard drive of one computer, a user can safely access the business’s accounts from anywhere, at any time from any device with an internet connection.

-By being able to do so, there’s also the advantage of overviewing information in real-time instead of basing strategies on the figures of days-old reports. Real-time analysis allows for more accurate decision-making as well as a tidy record of transactions, which is also a major assist when it comes to paying taxes.

-Working on the Cloud means the software is always up-to-date since the versions are modified and improved remotely by the providers. The drawback of resetting data on workplace computers and paying for constant updates and security fixes is replaced by just signing up.

-Cloud accounting uses an API (Application Programming Interface) to create a network of apps that can be used together to build on the insight of your numbers, providing a powerful outreach and competitive edge. In other words, the system takes advantage of the interconnection between the apps by sharing info among them for enhanced projections. The more a system knows, the more precise its forecasts are, and this means better planning.

-Payments are quicker and easier. Cloud Accounting enables payment apps to be linked to your accounts, which clears up the workload for employees to focus on other areas and allows swifter, more clear interactions with clients.

The Cloud Is Not for Everyone
Certain decisions, like which college to go to, choosing an insurance provider, wearing sandals on a rainy day, or taking the leap to cloud accounting, are not the kind to be taken lightly. The choice is up to the executives and owners, eventually, but they ought to know that every good thing comes with a set of conditions, which may or may not be affordable in terms of money, time, and human resources.

-There is a downside to taking the leap to cloud accounting, though. It mostly concerns internet range, speed, and availability. If your business has bandwidth or data limitations, then this modality of bookkeeping will only fluster work dynamics and thwart any possibilities of growth.

-Furthermore, the frequent costs of the service are a key factor to take into account, as it should never be a matter of exposing any enterprise to financial turmoil over an improvement that might or might not suit the needs of the business (this depends on its stability and vision in the short and long run).

-As occurs with every piece of information stored in external sources, the risk of leaks or of a client and/or employee being subject to phishing, opportunistic hacks, and other internet scams is never out of the picture, despite the strong reliability in many of the most popular cloud accounting software. Leaks and hacks have catastrophic repercussions on big, well-established businesses.

The Most Trusted Cloud-based Accounting Software
Of course, those who consider taking a deeper look into cloud-based accounting platforms can go beyond the pros and cons read and check them out themselves. Below are only three of the many, many platforms used by millions of people for online financial supervision.

Zoho Books
Zoho Books is available for both Android and iOS. It’s known for tracking expenses, sales tax, and profitability. A standard plan also offers budgeting and reporting tools as well as invoices in several languages. Zoho Books set four categories for the service:

Free

  • Standard at $20 per organization per month
  • Professional at $50 per organization per month
  • Premium at $70 per organization per month.

QuickBooks
Quickbooks has over seven million customers worldwide. The wide range of features is essential to QuickBooks’ well-established presence, as it helps minimize tax deductions as well as track inventories, employee working hours, and profitability on projects, with add-on payroll features including invoicing and financial reporting. The array of prices varies as follows:

  • Self-employed at $15 per month
  • Simple start at $25 per month
  • Essentials at $50 per month
  • Plus at $80 per month
  • Advanced at $180 per month

Xero
Xero accounting software is made simple for small businesses. Much like the past two software, Xero provides financial reporting and analytical tools, keeps records of receipts, and tracks profitability while it creates, indexes, and shares invoices. Its strength is in the cheap prices when compared to other platforms in the same niche, organized in three plans that attend the growth process of the businesses:

  • Early at $5.50 per month
  • Growing at $16 per month
  • Established at $31 per month