How Cloud Accounting Can Simplify Your Business AccountingNovember 28, 2014
What is the cloud?
By now most people will have heard of the term “the cloud” but you may only think of it in terms of uploading photos and saving and sharing documents. However, you actually access the cloud each time you log onto internet banking. The entire purpose of the cloud is to ensure people are able to access data and software easily and securely online, from their various devices, at a lower cost and whenever they choose to.
Cloud accounting takes the cloud concept and uses it to make business accounting a lot less time-consuming and costly. Since you can access the cloud whenever you have an internet connection, it means it is easy and extremely cost-effective for even the smallest company to integrate into their current systems and daily processes.
Scalable, cost-effective and easy to use, cloud accounting holds many benefits for your business, as well as your accountant and is most certainly a viable and worthwhile option for you to consider. If you are looking to streamline and update your business processes, as well as ensure your business is working as smart as it should be, take a look at the following benefits below.
Enhanced relationship with your accountant
Traditionally, you would contact your accountant a few times a month and as it approaches your end of year. However, with cloud accounting, you and your accountant can be in daily contact without it costing you or your accountant anything extra in time or money.
Cloud accounting software, such as that provided by Clear Books enables your accountant to keep track of the financial and cash flow position of your business at all times. These handy accounting packages thus changes the relationship between business owner and accountant from one that previously focused on compliance to one that is now very much strategic.
From online cashbooks and accounting software to payroll, HR and invoicing software, companies like Clear Books ensure your accountant can have a constant handle on how your business is performing. This means they’re able to advise you accordingly on business wide issues without the need for an in-depth meeting with you to discuss your financial circumstances.
Streamlined data processing
It is best to choose cloud accounting software from a company who can support both you and your accountant. Cloud accounting can add a lot of value to the relationship you have with your accountant, helping them by greatly reducing the amount of data entry that has to be done. Packages like Clear Books Accounts and Open Payroll enable your accountant to download your business’s bank feed automatically, which means they don’t have to spend hours entering all this data manually, as they traditionally would have to do.
Since you and your accountant are able to work from a unified data source at all times, it means that repetition of data and number of mistakes is reduced. As such, you will not be paying fees for non-value added services (data entry) and can instead invest your money in additional advisory services that your accountant might offer.
Cloud accounting can help ensure your business transactions are accurate and that mistakes are kept to an absolute minimum. This is because both you and your accountant are able to work from the same set of data in real time.
Instead of spending time toing and froing from face to face meetings and sending paperwork back and forth, it enables both parties to access everything they need from their desk and conduct quick, efficient meetings over the phone. Both parties therefore save a lot of time and effort and can just focus instead on their most important tasks.
Vast reduction in the amount of paperwork
Moving your accounting processes online greatly reduces the amount of paperwork you have to print out and store. Cloud accounting gives accountants the ability to access your information online and as such greatly reduces the amount of disruption to your working schedule, since you don’t have to hand over any working papers.
A cloud accounting package such as that offered by Clear Books also allows online access to invoices and receipts since these can all be stored online. Moving to cloud accounting means you do not have to rely so much on offline channels, i.e. posting expenses, receipts and invoices. This means you no longer have to be concerned about important paperwork being lost in transit.
One of the biggest bugbears for businesses is the amount of time and money that is spent on doing a lot of the accounting “donkey work”, which although essential doesn’t add any monetary value to the business but does cost the business.
With you and your accountant both using cloud accounting software, you will greatly reduce the number of transactions that have to be entered manually, since these will all be downloaded automatically. The better cloud accounting software providers, such as Clear Books, have also designed their software so that transactions are automatically coded, which means they are taken to the relevant ledger immediately; another time saver!
Since this automation reduces a lot of the manual work, many accounting companies have taken the decision to offer lower monthly fees for their services. This is obviously of huge benefit to your business and will also enable you to more accurately calculate what your monthly accounting fees will be.