Why Cloud Accounting is Important for Small Businesses

30 Jan

Why Cloud Accounting is Important for Small Businesses

We live in highly dynamic times and the companies that will be sustainable both in the short and long run are companies that will embrace change. Working in the ‘cloud’ will give you a better overview of your finances, and improve collaboration with your team which will help you work smarter and stay ahead of competition.

Cloud software can save your company time and money.Blog

WHAT IS THIS CLOUD?

The ‘cloud’ is a platform to make data and software accessible online anytime, anywhere, from any device.

You no longer have to go through the frustration of losing your data or purchasing expensive hard drives to back up your central office computer.

PROBLEMS WITH USING TRADITIONAL METHODS (HARD DRIVES)

It only works on one computer and data bounces from place to place.
For example, on a USB drive. This is not secure or reliable (the system may crash or viruses can corrupt your data).

Only one person has user access. Key people can’t access financial and customer details. For example, only the accountant can have access to the financial information of a company and cannot easily share this information with the manager that may have travelled abroad or the supplier that needs to know the financial position of the company before they supply the a company.
With cloud accounting, in a split second, the accountant can be able share a link with the manager and the supplier and this increases the pace at which work is done and the quality of work provided.
It’s costly and complicated to keep backups (if done at all).
It’s expensive, difficult and time consuming to upgrade the software.

WHY CLOUD ACCOUNTING IS THE BEST SOLUTION FOR YOUR BUSINESS

As a small business owner, you might be concerned about a cloud service provider storing your data. But the cloud is one of the most secure ways to store information. For example, using cloud software, if your laptop is stolen, no one can access your data unless they have login credentials to the online account. With cloud software, this is where the data lives – as opposed to on your hard drive.
In the event of a natural disaster or fire, being in the cloud means business productivity doesn’t need to be affected because there’s no downtime.
All of your information is safely and securely stored off site. As long as you have access to any computer or mobile device connected to the internet, you’re back up and running.
In addition to this, if you invite users to view your data, you can control the level of access. This is much more secure than the old-fashioned way of emailing your files or sending out a USB stick with your data on it.
Cloud-based software companies ensure that the security and privacy of data about you and your organization is always airtight. If you use online banking, then you’re already primed to use cloud accounting.

WAYS IN WHICH CLOUD SOFTWARE BENEFITS YOUR BUSINESS

You have a clear overview of your current financial position, in real-time.
Multi-user access makes it easy to collaborate online with your team and advisors.

Automatic updates mean you can spend more time doing what you love.
Everything is run online, so there’s nothing to install and everything is backed up automatically. Updates are free and instantly available.
Upfront business costs are reduced – version upgrades, maintenance, system administration costs and server failures are no longer issues. Instead, they are managed by the cloud service provider.
Cloud accounting software is flexible it gives you to run your business from work, home, or on the go. You can be confident that you have an up-to-date picture of how your business is doing, no matter where you are.

Business TypeSole Trader

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