July 12, 2015
Cloud accounting, also known as “online accounting” is the process of using computer hardware and software applications to do accounting online. Data is sent to the Cloud (the Internet, essentially), where it is processed and returned to the user. There are many benefits to Cloud accounting; here are four reasons why you should consider switching to Cloud accounting:
1. Removes the Constant Pile of Paperwork
Instead of having to deal with all that paperwork, everything is stored in Cloud services and apps. This enables you to utilize paperless work flow management and file storage. You are emailed invoices which are then electronically are put into a processing queue, which are then approved and the payment process is managed online.
This means businesses spend less time finding and filing documents. Apps on our smartphones are used to capture images of your receipts which are then automatically put into the companies accounting system. This means there is no constant hassle of having to remember and store all your receipts. You can also update bookkeeping information in real-time, which allows accountants to better communicate with their clients, which means everything is always up to date.
Moving on to smartphones means that we are getting rid of the constant demand for paper, constituting to a greener business overall.
Will Farnell of Farnell Clarke accountants in Norwich said, “As one of the early adopters of Kashflow, we’ve seen a huge rise in interest in businesses switching to cloud accounting. More and more companies are seeing the benefits.”
2. Ability to Access Financial Information Anytime, Anywhere
This is so beneficial for businesses that are constantly on the move, meaning that a few taps on their smartphones can make a world of difference. They can find out information such as; a summary of financial statements and cash flow analysis 24/7 wherever they are in the world; as long as you have an internet connection.
3. Access Your “True Cashflow”
This means you constantly know exactly what’s going on with your money. Cloud accounting means you can see how much money you have, where your money is going, who you owe money to, and who owes you money. Knowing your “true cashflow” gives you confidence to make the right decisions for you or your business.
4. Reduce the Risk of Fraud or Embezzlement
Having all this important information all protected online means there are less chances of fraud or embezzlement. The winner in this technological transition are small businesses which don’t have manpower systems or know how to ensure that proper internal controls in place to protect against theft. Online bill paying allows for multiple approvers with a click of a button.
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