Here are 6 reasons why you should consider a move to cloud accounting software
By Nicholas Naidoo
1. Access your financial data at any time using your mobile/tablet, at any time, from anywhere.
When you use a desktop-based system, you are tied to the office. Your software, your data and your accounts are all on a local drive, which limits the access you have to your financial information.
2. A cost and time-effective solution.
Working online reduces your computer expenses and saves you time by keeping you constantly connected to the business.
Rather than waiting until you are back at the office, you can immediately approve payments, or send out invoices to customers.
3. Security and no time-consuming back-ups
When you are cloud-based, your accounts and records are automatically saved and backed up.
If you have used desktop accounting, you will be aware of the need to back-up your work at the end of each day. And you will also know about the need for updates each time your provider brings out a new version of the software.
On a cloud platform, back-ups and software updates become a thing of the past. You are always logged in to the most up-to-date version of the software, also your work is saved automatically as you go.
Security is another area where cloud accounting is better than a desktop system. Your data is no longer on a physical server in the office or on the hard drive of your laptop. All your accounting information is encrypted at source and saved to the cloud. So, the only person who can access your confidential information is you, plus selected members of your team and advisers.
4. Share and collaborate with ease
Working with colleagues, and sharing data with your advisers, is an extremely straightforward process when you’re based in the cloud.
With a system like Xero online accounting (our choice of cloud accounting), you, your colleagues, your management team and your advisers can all access the same information instantly, from any location. So, collaboration is as easy as picking up the phone and logging in to Xero, with the key numbers in front of you.
5. Reduces paperwork and is more sustainable
Using cloud accounting can deliver the dream of having a paperless office.
With traditional accounting, dealing with paperwork, data-entry and financial admin can start to eat into your business time. Everything must be printed and dealt with in hard copy, and this is slow, ineffective and bad for the environment.
With an online accounting system, you can significantly reduce your reliance on paperwork. Invoices can be emailed directly to clients, removing the cost of printing and postage – and speeding up the payment process. Incoming bills and receipts can be scanned and saved directly with the associated transactions in your accounting software.
And because your documents are all digitized and stored in the cloud, there is no need to keep the paper originals, saving on filing space and storage costs.
6. Better control of your financial processes
The efficiencies of Xero’s online accounting software give you greatly improved control of your core financial processes.
Xero’s online invoicing function streamlines the whole invoice process, giving you a better view of expected income, an overview of outstanding debts and a clear breakdown of what each customer owes your business.