8 Reasons to Use Cloud Accounting Software
Cloud accounting is not just for start-ups anymore; even some of the world’s largest companies use it because of the time and money they can save with it. If you’re thinking about making the switch, here are the top eight reasons why growing businesses should consider moving over to cloud accounting software:
If you can operate a smartphone, you can use cloud accounting software. Once the software is running, all users need to do is enter transactions and information will be automatically populated based on what has been entered previously (for example, wages are already linked to employee names).
Cloud accounting software is a great choice for growing businesses that want to expand their operations over time. Cloud accounting software makes it easy to add more users as your company grows and make sure that everyone has access to everything they need no matter where they are or what device they’re using.
Many cloud accounts software publishers will even pre-bundle features that are commonly used in your industry, such as revenue recognition for non-profits or inventory for distribution firms.
3. Quicker than traditional accounting
Cloud accounting software is much faster than traditional methods. You can work with multiple people at once and even get a better understanding of your business.
In addition to being more efficient than manual bookkeeping, it also saves time by making it possible for users to access their data from anywhere at any time. There’s no need for employees to wait until they get back into the office to access vital information about revenue streams or financial transactions. Finance contacts and executives can even approve transactions or invoices on the go!
4. No office space required
Cloud accounting software offers many of the same features as traditional accounting software but without the need for office square footage. With remote access, there’s no need to buy expensive hardware.
5. Accounting in real time
When you use cloud accounting software, your financial information is updated in real-time. That means that you can see how much money is coming into and going out of your business at any given moment. You can also see exactly where the money is being spent, which will help keep costs down because it allows you to make better decisions about spending.
There are many benefits to having a real-time accounting system:
- It’s more accurate than manual entry methods, so you’re less likely to make mistakes due to manually entering data.
- It helps businesses make faster decisions about their finances by giving them access to more information in a timely manner.
- It provides an easy way for small business owners who have multiple employees or locations around the world to stay on top of their finances without an expensive IT infrastructure on hand or hiring someone full-time just for this purpose.
6. Accessible remotely
With cloud accounting software, you can access your accounts from anywhere, so you don’t have to worry about bringing your laptop with you when travelling. Additionally, the software is compatible with multiple devices. This means that employees and contractors can use their preferred mobile devices — whether it’s a smartphone or tablet — to stay on top of data entry and see the latest updates in real time.
7. Easy to integrate
Cloud accounting software – like Sage Intacct or Acumatica – provides a simple API (Application Programming Interface) that allows you to connect your cloud accounting software with other applications and systems. You can then access information from these other apps and systems inside the cloud accounting software.
This integration can be used for many purposes, such as getting data into or out of your system, synchronizing files between different locations, collecting more data than what is provided by the cloud accounting system itself, etc.
Examples of apps/systems that you can integrate with include:
- Receiving orders through e-commerce platforms like Shopify or BigCommerce and tracking inventory levels based on those orders;
- Integrating payroll services like Gusto or Intuit Payroll, so employees are paid correctly; and
- Importing all your invoices from Salesforce, so they appear in Xero at the same time.
8. Accurate data means fewer errors
Accurate data means less time spent on tedious manual accounting. The less time you spend on repetitive tasks, the more time you have to focus on growth. You’ll be able to spend your valuable time thinking about other aspects of running your business and how they can improve, such as customer satisfaction or employee training.
Cloud accounting is the most powerful way for businesses to manage their finances. It offers many benefits over traditional methods, including increased efficiency and access to accurate data from anywhere. If you’re interested in learning more about how cloud accounting can help your business grow, reach out to our Tech Stack experts for a personalized demo and discovery.