In the beginning the cloud was owned by tech geeks and early adopters but times are changing rapidly and now cloud based technologies for accounting are growing rapidly. In 2014 cloud accounting became a $1.7 billion dollar industry and analysts predict that cloud accounting will continue to grow and reach the $2.16 billion mark by 2016.
We live and work in a highly mobile society. We are always on the go. Your business cannot be tied down to a desk and an onsite server. Flexibility and real time financial information are crucial to making smart, informed business decisions. With a new year nearly upon us now is the time to get onboard with cloud- based accounting so that you are ready to reap the benefits it has to offer in 2016.
Accounting has for many decades required a lot of redundant data entry. It is time-consuming and costly. Cloud-based accounting eliminates these time-consuming tasks through automation. It enables business owners to get real-time information so that they have an up to the minute view of the company’s daily financial position. Cloud based accounting applications integrate financial information fluidly with a company’s banking information to provide a complete picture.
Here are nine reasons your company needs to make the switch to cloud based accounting.
Cloud based accounting software gives you the tools to take full control of your finances. It allows you to upload or bring in “live feeds” of your banking information and credit card transaction data directly into your accounting stream automatically. No keyboard strokes no uploading or downloading tasks.
A real time dashboard indicates your true cashflow by integrating bank balances, credit card transactions, accounts payable and accounts receivable. You will be able to see immediately who owes you money and what you owe others. You will know exactly where your money is and where it is going. You can spend less time on administration and more time focusing on core business activities.
Recent studies indicate that businesses using cloud accounting tools and online payments get paid nearly two weeks faster than businesses using traditional accounting programs. Most businesses wait 41 days to get paid. By automating invoicing it will help cash flow and save both time and resources you are currently committing to following up with customers.
One of the key benefits to using a cloud based accounting system is the flexibility it offers. You can manage your finances from anyplace at anytime whether you are waiting for a flight, picking up the kids from school or on vacation. You can even reconcile your bank accounts and snap a photo of your business expenses and upload them wherever you are.
With so many businesses having virtual employees and working with virtual teams the ability to collaborate online is no longer merely a luxury-it is a necessity. Cloud accounting solutions provide the ability for several people to view the same real time information and data to collaborate in planning, working on financial reports and more. Everything can be done in real time. No more shuffling paper or electronic files between employees, accountants or anyone else. Version control is automatic and the time saved equates to a greener bottom line.
Integration with Other Business Apps
Another great benefit of cloud accounting software is the ability to easily integrate it with other business tools and apps you use to manage your business such as ADP for payroll management, Google docs and project management software. The integration possibilities make managing your business a breeze. You can get the big picture without having to duplicate or manually re-enter data to multiple tools, software programs or apps.
Lower Overhead Costs
By moving accounting and other business systems to hosted solutions businesses can save a lot of money because they can eliminate or radically downsize their servers and IT infrastructure.
Data security is a huge issue for businesses. Businesses have to spend a lot of money to build in high levels of data security. Many businesses that never would have thought to outsource or use cloud based technology now see these hosted solutions as the answer to their security nightmares because the security layers built into cloud technology far surpass most in house security systems. With these high, sophisticated security systems in place to protect data that resides in the cloud it is the perfect environment for accounting software solutions.
Cloud based software-as-a-service applications perform faster than traditional software solutions. Not only that, you do not need to worry about downtime anymore. The speed of business has increased and cloud based accounting software makes it possible to keep up.
Businesses no longer rely solely on desktop computers. Cloud accounting software is designed and optimized to work equally well on all types of devices from desktops, tablets and laptops to smartphones. Accounting can be done on whatever device you have available at the time. The data will always be readable and entry easy to do.
With cloud accounting access to real time information is forever changed and it is having a significant impact on the world of accounting. With the availability of immediate information time is becoming more and more compressed. Automation is opening the way for accounting experts to use their financial skills and knowledge to provide more customer insights into a business.
Client expectations are more sophisticated now than ever before. Cloud based accounting software allows accountants to deliver the advice, insight, real-time reporting and pricing assistance clients are seeking. In this digital age businesses need the ability to act and react quickly to changes. Cloud accounting automation frees up valuable time so that businesses can focus on meeting the needs of their customers quickly and efficiently while real time information allows complete control and insight on a daily basis so that well informed decisions can be made with speed to respond to quickly changing market conditions. Experts agree that cloud accounting is here to stay and will continue to grow rapidly in the coming years. Now is the time to make the change to cloud computing so that your business can compete on an equal footing with your competitors.