Not sure why a cloud-based based accounting system might be best for your business?
Let’s start with the basics, what is a cloud-based accounting system?
A cloud-based system also known as online accounting software or web-based accounting software – is accounting software that is hosted on a remote server.
There are many benefits to these cloud-based systems and quite a few systems to choose from on the market. Here are some of the benefits.
1. Flexibility
Cloud-based accounting allows for great flexibility to adapt to your business’s needs. Most systems offer different packages so that you can pick what is going to work for your business and will allow you to make changes or upgrades as the business grows.
Your business may only need to have 1 or 2 registered users at this moment, however down the track as your business grows you may need to add more. A cloud-based system will offer you different packages so you can easily upgrade to suit your needs.
Working with these systems also gives you the ability to log in and access your current financial data wherever you are, giving you greater flexibility. You don’t have to be tied to one desktop computer.
2. Ease of Sharing data
Using a cloud-based accounting software program makes it easier for you to work with and share your financial information with your bookkeeper or accountant.
You can easily share your data with those that you need to, it is no longer necessary to download and email selected reports. Your accountant or bookkeeper no longer has to wait for you to download and deliver a USB with the information they need on it. They can safely and securely access the data whenever they need from their office.
3. Save Time and Money
Cloud-based systems are a great way to save time and make your business more cost-effective. Having to print fewer hard copies means you can keep your printing costs down.
You also save time not having to do tedious backups of data each and every day, cloud systems are continuously saving your work, so you are always working with your most current and up-to-date information.
You will also no longer have to worry about wasting time updating your system when the program releases a newer version. With cloud-based accounting, the system will automatically do that for you, so you are always working with the latest version.
4. Security
A big question for a lot of businesses is how safe and secure is their financial data? When you are cloud-based, your accounts and records are all saved and continuously backed up and encrypted. There is no need to regularly perform back-ups. You’re always using the most current version of the program and your work is saving automatically as you go.
Some of the security benefits are:
- an off-site automatic backup server
- regular security audits
- high-level digital security software with inbound and outbound encryption
- multiple segregated networks
- multiple built-in user authentication methods
- dedicated anti-malware software
5. Environmentally friendly
With a more traditional method of bookkeeping everything is usually printed. Not only can this be slow and inefficient, but it can also add to business costs.
A cloud-based system can significantly reduce the number of hard copies needed. This means your business is being more environmentally friendly and sustainable.
6. Ease of data Recovery
If you have used traditional accounting systems, you know you need to back up your work at the end of each day. This means that if you lose data and need to recover it, it can be a long and tedious process.
With cloud-based systems in the event of a disaster, you can simply use a backup and restore your data without any disruption in business. And you have the added bonus of having access to their technical support should you have any issues.
If you need help choosing from the different cloud-based systems that are available and what would be best suited to your business, Sense in Numbers can help you make a decision based on years of experience.
