Cloud accounting solutions remove manual work and improve efficiency by automating processes. They also eliminate the need to host and manage software in-house, reducing costs.
By providing real-time access to centralized financial data, cloud accounting software fosters collaboration and supports informed decision-making. Here are five benefits you should expect from a top-rated solution:.
1. Automated workflows
Modern cloud accounting software automates many manual processes such as invoice generation, recurring billing, and subscription payment processing. These automations speed up processes and reduce human error, thereby enhancing operational efficiency. They also notify the accounts team of exceptions like a mismatched invoice or purchase order, enabling them to quickly fix the issue.
With automated workflows, you can take slow, repetitive tasks off your or your accountant’s plate and focus on more important activities. This can free up valuable time to work on more strategic business initiatives or to improve client relationships. It’s also a great way to cut down on administrative overhead and save money on employee salaries, office supplies, and technology expenses.
Comprehensive cloud accounting solutions such as FreshBooks and BlackLine offer automated workflows that connect accounting with other critical functions such as financial planning, inventory, payroll, and more. This integration increases transparency, fostering collaboration and better decision making across the company.
Having a well-documented accounting workflow management program makes it easy to set up and execute recurring, periodic accounting tasks such as monthly bookkeeping or bi-weekly payroll. These workflows make it less likely that accounting tasks will fall through the cracks, and they give staff members peace of mind knowing that their responsibilities will be covered regardless of if an accountant is sick or on vacation.
Additionally, cloud accounting platforms can be accessed on any device that has an internet connection. This means that employees can work on the project from their home computers, their office desktops, or even their mobile phones on-the-go. Information syncs across all these devices in real-time, ensuring that everyone has a consolidated view of the most current financial data and eliminating bottlenecks around information-sharing and visibility.
2. Real-time access to financial data
With cloud accounting software, it is easier than ever for all authorized users to access real-time data. This is especially true if you need Denver Bookkeeping. All numbers are available at a moment’s notice, so your accountant can ask for updated reports without frantically searching through emails and USB memory sticks. In addition, cloud accounting is a great way to ensure that you and your team are working from the same information, which promotes consistency across departments.
Automated systems and built-in controls increase accuracy while eliminating manual data checking, speeding up processes and reducing the risk of human error. Additionally, integrated solutions provide a single source of truth that eliminates the need to consolidate information from different spreadsheets, further speeding up reporting processes and reducing resourcing costs.
Additionally, the ability to access and update numbers from anywhere, on any device, allows teams to collaborate with ease. This is especially helpful for teams that travel for business. For example, a sales representative can easily update a number from their mobile phone or tablet and share it with colleagues immediately. This can also be useful for small businesses that work with outsourced bookkeepers or accountants.
Cloud accounting also makes it possible to use a range of third-party apps and tools in your business, thanks to open API integrations. This can help streamline certain processes, such as receipt automation or automated invoice creation. Additionally, it can be easier to integrate payments apps like GoCardless into your online accounting system so customers can pay directly from invoices automatically, further reducing resourcing costs and processing times.
Lastly, with cloud accounting, you can grant access to the system to your accountant or bank, so they have constant access to all the latest numbers and information. This is quicker, safer and helps give your advisors the information they need to support and advise you going forward.
3. Scalability
A growing business requires a comprehensive accounting solution that is easy to scale and flex to match a company’s evolving financial management needs. Traditional spreadsheets become unmanageable when a company is expanding, and desktop accounting software often has limited functionality that can hinder growth. A cloud-based bookkeeping solution can help you automate workflows to improve productivity and provide real-time access to crucial financial data.
With a cloud-based system, you can log in from any computer with an Internet connection to update your company’s books or share data with accountants. With some leading solutions, you can even set up automated workflows that generate invoices for recurring customers or process payments when they come in. This eliminates manual steps and helps your team stay on top of billing and accounts receivable.
A big benefit of cloud systems is that they don’t require big upfront investments in hardware and servers. They also eliminate the need for IT teams to install software and conduct regular backups of sensitive financial details. Cloud solutions also allow employees to work from home, a client’s location or on the go, and they can access data from any device.
Cloud-based accounting systems are also compatible with a wide range of other tools and apps that can connect to your account and give you a holistic view of your financials. These can include CRMs, ecommerce platforms and payment processing services. Many of these integrations can automate time-consuming and error-prone manual processes and save your company money on payroll, licenses and IT staff time. This makes cloud accounting more affordable than ever before.
4. Convenience
The best bookkeeping software makes your business run better by automating some functions that are time-consuming and error-prone. It allows employees to invoice clients immediately after a sale or service, automatically update accounts receivable once a payment is received and set up recurring billing for regular customers. Those small automations make a big difference.
Cloud accounting systems offer more convenience by providing accessibility and real-time access to financial data. Authorized users can log in from anywhere on any device using a web browser or mobile app. It means that employees can complete important tasks from home, the field or even while traveling without interrupting your workflow.
With a centralized platform, collaboration amongst your team is more effective. Multiple users can work on the same data simultaneously and communicate with each other on financial documents, saving a lot of time. Having real-time information can also help you spot problems that may not be obvious in historical reports, allowing you to act quickly before they escalate into larger issues.
Having a more efficient finance department can free up valuable time for other business operations, such as marketing, sales, or client services. Some software offers a full suite of integrated business applications that can handle all aspects of your business, so you don’t have to rely on separate systems for different functions.
Many leading accounting systems offer extensive ecosystems with hundreds of third-party software solutions for additional functionality. This integration reduces initial infrastructure costs and the need for dedicated IT staff, further reducing operational expenses. It also provides stronger security with features like data encryption and automated backups. A cloud-based accounting system also requires less maintenance compared to on-premises solutions.
5. Security
Cloud accounting software operates on remote servers connected to the Internet, which allows users to access financial data from anywhere in the world as long as they have an internet connection. This gives your employees the flexibility to work from home, on the road, or anywhere in between without having to worry about missing a payment because they haven’t entered it in the system.
Many cloud accounting platforms offer automated processes that eliminate tedious bookkeeping tasks and reduce the amount of time spent on them. These automated tools can do things such as import bank and credit card transactions, generate recurring invoices, automatically calculate discounts and taxes, and automatically update records based on payments received.
Because of this, your accountants and employees can focus more on analyzing the numbers and providing insights to you about your business’s performance. You’ll have real-time access to your numbers so you can make more informed decisions and improve the efficiency of your business.
With cloud accounting, your data is encrypted using bank-level security and stored on secure servers that are constantly backed up by your service provider. This means that your information will be safe from hacks and other forms of cyber crime, and you won’t have to worry about losing important financial documents if someone’s laptop is stolen or your office suffers a fire or natural disaster.
In addition, cloud accounting services are typically subscription-based, which saves you money on initial infrastructure costs and eliminates the need for IT staff to handle hardware maintenance or updates. This can help you reduce your overall IT costs and reallocate resources to other critical areas of your business.
