What is Cloud-Based Accounting Software?

Cloud-based accounting software is based in the “cloud” rather than installed on your desktop or manually maintained in ledgers and journals. The software for cloud accounting is hosted on a remote server instead of a server on your business’ premises. Your accounting data is sent to the cloud, processed on the remote server, and then sent back for you to access.

None of the accounting processes occur on your desktop. The application functions entirely in the cloud. This frees your business from installing and maintaining software on multiple computers throughout your company. Your accounting or HR department can access the exact same version of the software as you and access real-time data within your account.

Cloud accounting is much more flexible than traditional accounting, allowing anyone who has access to your cloud account to crunch numbers in real-time from any device, anywhere, as long as there’s a connection.

Benefits of Cloud Accounting

Many business owners who have migrated to cloud accounting technology have reported cost savings and greater efficiencies in day-to-day operations.

For new businesses, starting fresh with a cloud solution is easy as signing up. Established businesses, however, will need to plan ahead for migration to ensure that critical data is kept intact, and everything continues to run smoothly. Fortunately, major cloud-accounting providers, such as QuickBooks Online, allow seamless transition from older, traditional desktop-based solutions.

Experience the benefits of the cloud!

Secure Storage of Financial Data

Cloud accounting technology can provide a more secure method of storing financial information than desktop-based software. Data is routinely backed up to servers in multiple locations by the SaaS provider, and there are no physical hard drives or computers containing sensitive data that can be stolen. Since financial information isn’t kept on-premise, the risks of fires and natural disasters are also mitigated.

Sync Data Automatically

Cloud accounting software does the heavy lifting so you can spend your time on other important business tasks. Automatically sync your bank accounts so you don’t have to manually import transactions or verify expenses. If 84% of businesses using cloud software are cutting their application costs — it’s a good indicator that with the adoption of online accounting, you can too.

Pay as you Grow

Small businesses often experience growing pains, which makes choosing software with future growth in mind a priority for many. Cloud accounting software allows businesses to purchase what they need and increase their spend as they grow. This includes adding more storage space, users, and more advanced features.

Multi-User Access 

Once you reach a point where your business is looking to outsource specific tasks, using cloud accounting can help scale in a cost-effective and controlled manner. The multi-user feature of cloud accounting means you can give different people access to your financial records and bookkeeping process, which they can access remotely.

This streamlines workflow and allows you to ask your accountant questions directly, all based on the most up-to-date versions of documents. The multi-user feature makes for quick communication, team collaboration and less back and forth.

Immediate Transactions

Small business accounting in the cloud compels you to keep your data entry current. You can run balance reports or expense reports and get a financial snapshot of your business at any given point.

Centralizes your Most Important Tasks

Several aspects of your day-to-day business operations, like managing inventory, invoices, payroll, and even portions of your customer relations management can all be tied into your cloud accounting software. Save your hard-earned money – no separate software is needed.

Plus, the great thing about cloud accounting software is that third-party systems integrate seamlessly with QuickBooks Online. If your company uses an ‘actual-minutes worked’ type of format, your time tracking software can integrate with your accounting software to maintain accurate payroll records.

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© 2020 Ross & Sylvestre LLP Chartered Professional Accountants - all rights reserved.

Blunt Strategic & ABWeb

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