In recent years, cloud technology has revolutionised our day-to-day lives. We post our family photo album to Facebook, we pay bills online and we even monitor our energy usage through apps on our phones. So if we are already using the cloud to make our everyday lives easier, why are we not using it in our business lives too? Despite the wide array of services now available, there are still a large number of business owners resisting the change to digital processes. So today, we want to explore some of the benefits cloud accounting could bring to your business, and why it could be one of the smartest decisions you make.
Real Time Reporting
With cloud-based accounting, you have the ability to oversee your business’s financial performance at any time, in real time. No more waiting for lengthy reports to be generated and no delays in data when the accountant is away. Simply log in to your online portal, choose what data you would like to see (sales reports, profit and loss, etc) and the software will generate you an up-to-date report that allows you to make business decisions quickly. Not only that, but the core functionalities of cloud accounting mean that you have much better control over your business finances than ever before, from an overview of expected income to which clients owe your business money and any outstanding debts, helping you manage your finances efficiently.
In a world where efficiency and environmentally friendly are now becoming intertwined, a cloud accounting system is just one step business owners can take towards that dream ‘paperless office’. With traditional accounting, dealing with paperwork, data entry and financial admin can eat into your time, while producing a mountain of paperwork that just is not necessary. With an online accounting system, businesses have the ability to significantly reduce their reliance on physical paperwork. For example, invoices can be created and sent directly to clients via email, reducing postage and paper costs and speeding up average payment times. And because all the documentation is stored digitally in the cloud, you eliminate the time used searching numerous filing cabinets and can save physical storage space.
Share And Collaborate
Using the old desktop approach to accounting, limited access to your accounts made sharing data with advisers, directors, investors and colleagues a complicated and time consuming process. If your accountant needed specific numbers, they would have to be emailed back and forth multiple times or saved to a USB stick and sent across – either way a major security risk for sensitive data and a very slow process. But with systems like Xero, you, your colleagues, your management team, advisers and accountant can all access the same numbers instantly from anywhere in the world. So collaboration and discussion is as simple as picking up the phone and logging in.
High Level Security
When it comes to security, you are only as strong as your weakest link, and for businesses still working with desktop accounting software can cause serious problems. Desktop accounting needs high levels of security that many smaller businesses just do not have, along with regular backups and updates to ensure no data is lost. If any of that fails, you risk losing access to your accounts. When you are cloud-based, your accounts and records are all saved and backed up with military levels of encryption and security, so you never need to worry about dealing with it in-house. Plus, cloud platforms have made software updates and extra backups a thing of the past. You are always logged in to the most up-to-date version of the software, with all the latest functions, tax rates and necessary returns. Your work is saved automatically as you go, so you save time and money on tedious back-up procedures. And because you are no longer using a physical server in the office, all your accounting information is encrypted at source and saved to the cloud.
At Purple Lime we specialise in helping our clients see the benefits of cloud accounting for their business, using cutting edge software provided by Xero. For more information about how cloud accounting can benefit your business, or to book your free consultation, simply email firstname.lastname@example.org, or call us on 01249 691360.