Over the past few years, cloud based accounting has gained increased popularity across the world, and why not? This accounting solution is not only reliable and time-effective but also more affordable than traditional accounting systems. According to Forbes, cloud based accounting reduces the labour cost up to 50%.
If you’re planning to switch from conventional accounting to cloud based accounting, make sure you work with an accounting firm that has invested in advanced cloud based accounting software like Xero. You need to ensure that they’re Xero certified partners.
In this post, we learn the benefits of cloud solutions, but before that, let’s find out what it is exactly!
What is Cloud Based Accounting?
As the name indicates, cloud based accounting is the practice of using an accounting system which is accessed via a web browser. Since cloud systems are internet-based, they can be accessed anywhere, anytime and through any device, which has an internet connection.
According to Accountancy Age, by the end of 2020, the percentage of small businesses that entirely rely on cloud based accounting will be around 78%. Xero confirms that the firms that have been using cloud saw 15% growth in their annual revenue. Moreover, those businesses were able to get five times more customers.
Advantages of Cloud Based Accounting for Businesses
Access Your Data Anytime from Anywhere
One of the most significant benefits of integrating cloud based accounting into your accounting system is that this technology allows you to access your business account balances, outstanding invoices, and overall cash position anytime using your laptop, smartphones or tablets. If you’re one of those people who are always on the move, cloud solutions can prove exceptionally beneficial to you.
Minimises Paperwork
With cloud based accounting, you don’t have to deal with unnecessary paperwork. You can email invoices directly to your clients. It will automatically eliminate the cost of printing and postage of invoices. Additionally, it will speed up your payment process.
Cloud services also enables you to scan and save your bills and receipts with the associated transactions directly in your accounting software. Besides this, it also allows you to integrate with other online accounting software. For example, Xero can be integrated with Zoho, Stripe, PayPal, and more.
Collaborate Easily With Your Staff
Cloud based accounting makes it exceptionally easy to work with your staff and share the data with your advisers. You can bring your entire team together. With software like Xero, you can easily collaborate with your colleagues and management in real-time. Moreover, your financial adviser can access your data anytime using any device (laptop, mobile, tablet) connected to the internet. Easy collaboration is the one main reason around 58% of large companies are already using cloud-based accounting.
Highly Secured
Another most prominent advantage of cloud-based online accounting is that in comparison to a conventional accounting system, it’s highly secure. With cloud solutions, all your records are saved automatically and with a high level of encryption. You need not worry about taking backups. Software like Xero prevents unauthorised access by data encryption.
Final Thoughts
These are some of the ways cloud based accounting can help you grow your business. If you’re currently using a desktop-based accounting system, and want to upgrade to cloud-based accounting, look for a certified accounting firm that is specialised in Xero Implementation to help you make this switch seamlessly.