We are seeing clients who were early adopters of cloud accounting reaping the rewards for transitioning to the cloud. Cloud accounting is mainstream these days however, for those who still aren’t convinced, here are 8 reasons why you should consider making the switch to a cloud based accounting system: Reduced cost – Your business will see reduced costs when it comes to maintaining access to the latest accounting software. Subscription fees are charged once per month which replaces upfront license costs, version upgrades, data storage, maintenance and system administration costs associated with installed software.
In addition, system updates are all managed by the cloud accounting service provider. Informed business decisions – Having access to real-time financial data allows business owners to make informed business decisions based on business performance. Your accountant can support you by providing regularly management reports, review key financial ratios and provide recommendations on your cashflow regularly to you identify growth and improvement opportunities. Securely stored – Authorised users such as your accountant, bookkeeper and internal staff can be granted appropriate levels of permission to access your financial data, eliminating the need to prepare and send multiple files or exchange storage devices.
Each user is encouraged to use 2-Factor Authentication adding an additional layer of security over your information. Flexibility – Financial data is accessible from anywhere, at any time, by anyone who is authorised, all you need is an internet connection. Some software vendors also offer an offline solution which means if you do not have access to the internet you can complete work in the software without being connected and synchronise your file at a later stage. Efficiencies – Efficiencies flow right through your business. The ability to generate a quote quickly and distribute invoices promptly means you are more likely to get paid quicker. Live bank feeds reduce the need to spend hours on data entry, freeing up time for more profitable activities. Add on apps are also available to further streamline your processing.
One example of this is Receiptbank which automatically codes and enters supplier invoices into the system ready for your approval, significantly reducing the time and cost of having someone manually enter the data. Visibility– Having access to real-time data means you have full visibility on how your business is performing and can easily identify any discrepancies, trends, sudden changes and opportunities. Better cashflow management – Better manage your cashflow with up to date pre-configured bank reconciliations and key insights around your incoming and outgoing payments. Reduced staffing requirements – Engaging a qualified accountant to look after your financial data on the Cloud is often more cost effective and far less hassle than employing someone to look after your accounts and bookkeeping in-house. Alternatively, if you are like many small business owners who are spending hours processing invoices, reconciling accounts or managing payroll, a professional can take care of your finance processing efficiently, provide you peace of mind knowing your business is compliant and free up your time for more important things. There are a number of cloud accounting products available in the Australian market. To ensure you get the right product for your needs we recommend you speak to us. The PrincipleFocus team are abreast of the latest technology and can provide assistance with the setup, transition and training to ensure a seamless transition.
For assistance switching to a cloud based accounting program or for more information on how PrincipleFocus can provide meaningful reporting and insights on your business to support business growth and opportunity identification please don’t hesitate to contact us.