A recent study by TD Bank found that almost half of business owners and executives consider bookkeeping the least enjoyable part of their business. Savvy business owners are constantly on the lookout for tools which can save them time by delegating tasks. With a 46% usage rate, desktop accounting software is the most utilized bookkeeping tool.
While accounting software is essential to running a business, many business owners are not aware of cloud-based accounting solutions, with 60% of small business owners reporting that they don’t feel knowledgeable about accounting and finance. Considering the benefits provided by cloud-based accounting, we wanted to provide you with some tips and tools that you could use to enhance your accounting process.
What is Cloud-Based Accounting?
Similar to how you’re able to save your pictures onto Apple’s cloud with iCloud or save documents online with Google Docs, the same goes for cloud-based accounting software. With cloud based accounting, your files and data such as invoices, payment history, and customer info are stored online versus locally on your computer.
Benefits of the Cloud
Cloud-based accounting has permanently changed the accounting industry, and for good reason. Cloud-based accounting has proved to be a powerful tool that aids accountants, bookkeepers and business owners for several reasons. Cloud-based solutions help you avoid duplicate entries, and come with powerful features like reconciliation and synchronization where invoices are updated on the cloud immediately.
Now imagine that you were working on an important spreadsheet, saved locally on your computer, and something occurs where your computer no longer functions. If your hard drive or data gets damaged or corrupted your accounting data it is no longer available. Cloud-based accounting provides a solution to this problem by saving data securely online, reducing the risks presented by more traditional software.
Some cloud-based accounting solutions provide modern automation invoicing technology. When it comes time to grow your business, this could be one of the most useful functions, since it automates certain processes such as sending out invoices to customers. Add to that the additional benefit of your accounting department being able to access accounting data remotely. Such features allow you to save time to focus on other parts of your business.
Cloud Accounting Tips
Software with scalability
At the time of purchasing accounting software, you may not necessarily need all the add-on products offered that can enhance the software. It is important to keep in mind that as your business grows, you may need more powerful functionality for your accounting software, which is where scalability comes into play.
As your business grows in scale, the software you use has to be able to handle the new workload with improved features which is why it is important to keep scalability in mind when choosing an accounting software.
Cloud-based solutions that integrate with your software
There are many cloud-based solutions available which provide you with basic accounting functions yet many of these options don’t have an integration utility. These powerful tools can enhance your basic accounting software to provide you with increased productivity and time saving features like automated invoicing. By integrating with your accounting software, cloud-based solutions make it easier to scale your business and save costs.
While there are many powerful cloud-based accounting solutions to choose from, some provide a more complete product, for the early and later stages of your business. While they do differ depending on the size and volume of your business, these are some of the cloud-based accounting softwares we recommend:
- QuickBooks Online: Including numerous add-ons and robust software, QuickBooks Online is one of the most popular cloud-based accounting softwares on the market for small businesses.
- AccountingSuite: With its heavily customizable tools and features, AccountingSuite has powerful project and time tracking functions, with less add ons.
- Xero: With an “early”, “growing”, and “established” pricing tier for small and mid-sized businesses, Xero is excellent for those businesses unfamiliar with cloud-based accounting.
Innovations allow businesses to stay current and follow consumer trends. Cloud-based accounting software is the solution to many traditional accounting issues due to its many benefits. By providing enhanced security, increased productivity, and the ability to save time and money, cloud-based accounting has quickly become one of the most important tools for small and mid-sized businesses to scale.
Cloud-Based Accounting & Automated Accounts Receivable
Companies that rely solely on cloud accounting have five times the amount of customers than businesses that do not, with an average 15% year-over-year growth in revenue. When combined with powerful accounting automation solutions, you can optimize your business and increase cash flow. If you would like a solution that combines cloud-based accounting and invoice automation, we would like to help. Biller Genie’s automation and e-invoice solution reduces your outstanding balances by up to 40% and gets you paid up to 15 days faster. Click here to learn more.