If you’re still using traditional spreadsheets that require manual data entry or physical records, you might want to consider making a move to a cloud-based accounting system.
Smart business owners embrace the power of cloud technology in streamlining business functions and managing the financial aspects of their business more efficiently. Unlike old accounting software, cloud-based accounting systems are not hosted on your computer’s hard drive, but rather your entire accounting gets moved to an online platform.
These cloud-based systems offer a full suite of helpful features that can help you save time and money, allowing you to focus your efforts on the core aspects of your business.
In this article, we will discuss the top 4 reasons to integrate a cloud-based accounting system into your business.
1) Cloud-based accounting allows for efficient invoicing.
If your business relies heavily on invoicing, the latest cloud-based accounting systems can make this task incredibly efficient. These platforms allow you to email invoices to customers directly through the system and keep track of how long it’s been since the invoice was sent out.
Your customer can then pay you through a link attached to the invoice, thereby making the entire payment process more convenient. Because it makes it easier for them to pay you, there is a higher chance that your customers will pay you sooner.
Once your customer pays through the system, the invoice will be automatically marked as paid. On the other hand, the system will alert you if the payment has not yet been received past the due date.
Also, there are options within these cloud-based accounting systems wherein reminders can be automatically sent out when payments are late. You can also set up recurring invoices and retainers to make the invoicing process heavily automated, not to mention that the system can automatically calculate your taxes.
2) Cloud-based accounting systems can help you go paperless.
Moving your accounting to a cloud-based system can help you go paperless, which means it eliminates the need for you to keep years of paperwork and accounting files. All of these critical data are stored securely in the cloud.
In other words, you won’t have to dig through file cabinets to find the documents or receipts from last year that you need now– you can quickly get such information through your computer. Because financial information and details of transactions are readily available, you can easily share them with your accountant or any other third parties you collaborate with related to your finances.
There’s no need to mail them physical copies of your financial statements and other documents. Simply give them access to your system or email them the information they need.
3) Cloud-based accounting systems provide better accessibility.
With cloud-based accounting systems, you don’t have to be physically in the office to access your financial information through your work computer. Your ledgers, financial statements, and reports can be accessed 24/7 from anywhere, on any device. This means if you want to work remotely on certain days, you can still log in to your system from your personal laptop or smartphone and send invoices, check accounting reports, manage your business expenses, and perform any other functions.
4) Cloud-based accounting can help you achieve accurate and timely reporting.
An essential aspect of running your own business is reporting, as it helps you make informed decisions that can directly impact your bottom line. Accurate and timely financial reporting enables you to manage your finances better and understand your overall business performance.
In just a few clicks, you can generate and view accurate reports on your profitability, income, expenses, and year-end reports. You don’t have to spend long hours manually computing and going through every invoice to stay close to your numbers– because financial information is available to you automatically, everything is just more convenient.
As the business landscape continuously evolves, you too should start re-evaluating your processes, systems, and tools in place. By switching from old school ways of doing your accounting to the more modern cloud-based alternative, you will be able to reap benefits such as ease of use, accurate and timely recordkeeping, and improved accessibility.
If you’re not sure which cloud-based accounting system is right for you, it is best to consult with a trusted accountant. Lear & Pannepacker is one of the most reliable accounting firms that use the latest accounting systems to help their clients streamline their accounting and transform their business. When you partner with us, we won’t just help you explore your options but also get everything set up correctly.
Aside from doing the heavy lifting, we also provide advisory services to help businesses grow to their full potential. If you want to learn more about how we can help you with the finance side of your business, get in touch with Lear & Pannepacker today!