Storing data in the cloud allows your data to be accessible anywhere and makes room for many possibilities in bookkeeping and for your business more generally.
Traditional accounting softwares, on the other hand, will only set you and your business back because the data is not updated in real-time, is typically only stored in one device and can only be accessed by one user.
Here are 5 benefits of cloud-based accounting systems for small business owners.
1. Better security
Security is a big issue for business owners, and rightfully so. A breach in the system will likely cause huge problems for business operations and could even lead to significant losses and reputational damage.
Cloud storage is actually one of the most secure ways to store your data.
The data stored in your computer could be lost in unforeseeable circumstances such as a robbery, natural disaster or even a corrupted file.
However by using cloud storage, your data can be accessed only by those with the login details and you won’t have to worry about losing your data.
2. Access to real-time data
Another huge benefit of using a cloud-based accounting system is having access to up-to-date information on your business at any time.
This will give you a real-time big picture view of your business and therefore allow you to make well-informed decisions based on accurate financial information.
Every business is different and not without its own quirks and risks.
These cloud-based systems are constantly being updated by developers to include new features and add-ons that will allow users to customise the software to suit the needs of their unique businesses.
For example, you can customise the software such that you are able to access your invoices, inventory, sales and engagement all in one place.
4. More efficient
One of the biggest struggles of managing a business is handling all the paperwork. Sorting your documents physically can leave room for manual errors and loss of important files.
Storing your important documents on the cloud will allow you to save time and effort in digging through old folders in storage boxes just to check a single document.
Being able to locate your important documents easily will also indirectly improve your relationships with suppliers, vendors and employees since you will be on top of your payroll and be able to track your outstanding payments.
5. Makes taxes easier
Cloud software can help you with keeping your finances organised and up-to-date.
It also allows you to easily share access to your financial information with your accountant.
This will make your tax preparation so much easier as you won’t have to worry about missing an invoice.
If you would like advice on which accounting softwares to use, please do not hesitate to reach out to us through our website.