Are you still using standalone legacy accounting software for your business?
If you’re, it could just explain why you are not getting the results you expect from it. Most businesses today have moved to cloud accounting, which brings a lot of advantages like cost savings, increased productivity, instant access to information, and more!
67% accountants vouch for cloud accounting while 58% of large companies have already adopted the solution. By 2020, 90% of small businesses will solely use cloud technology making way for mass adoption in a few more years.
But what makes cloud accounting so lucrative?
For starters, companies that use 100% cloud-based accounting experience a 15% year-over-year growth in revenue. Companies that use the cloud are also able to add 5 times more clients than organizations that don’t use cloud accounting.
Now does it make sense why the cloud is a preferred option for your accounting needs? To help you decide whether you should move to the cloud, here are 10 advantages that cloud-based accounting software brings!
- Work from Anywhere
You don’t need to be restricted to a desktop in your office when you move to the cloud. All you need is an internet connection to access your financial details and do your accounting. Some providers like Xero also have mobile extensions so that you can work on the go!
- Automation Saves Time
Do you spend your day posting and chasing invoices? Cloud accounting can save you from the trouble by automating invoice generation and can also provide timely reminders at regular intervals.
Cloud-based accounting solutions like Xero automatically keeps tracks of debtors and can also be integrated with HR to manage payroll and automatically generate payslips and more!
- Reduce Costs
Cloud-based accounting software doesn’t need you to make huge upfront payments. You can take advantage of affordable monthly subscriptions and make the most of your business’s cash flow.
Moving to the cloud can also cut back your labor costs through automation and efficiency. According to Forbes, a cloud accounting solution can reduce your labor costs by 50%!
- Secure Your Data
When you are using on-premise accounting software, you can lose all your information if the hard disk crashes or the server goes down. But your data is always safe on the cloud with constant backups and mirroring ensuring 24/7 availability.
Cloud helps you to navigate disasters by securing your data effectively.
- Encourage Collaboration
Cloud accounting makes it easy for your employees and departments to collaborate on projects. You can control the access of information by granting individual permissions. For example, when you are using Xero, you can restrict your employees from managing payrolls to view only payroll-related data.
They will not be able to access other portions of the solution like bank transactions.
- Real-Time Information
Cloud accounting software can easily integrate with other business solutions to provide real-time data. You can link the solution to your bank accounts and easily keep track of expenses, sales, and inventory.
You can get a clear picture of your finances and have a clear idea of where your business is heading.
- Automatic and Free Updates
You don’t need to pay or do anything to update your software. Cloud-based accounting solutions are automatically updated by the vendors and come as a part of your subscription.
You can always be sure that any change in accounting standards is done automatically without you having to put in any effort.
- Improved Accuracy
27.5% of companies consider manual data entry to be the source of accounting errors. Cloud computing can get rid of manual data entry processes and automate the process for greater accuracy and data quality.
For example, accounting solutions like Xero can directly fetch details from paper invoices using a smartphone camera to reduce errors of manual entry.
- Overview of Financial Position
You do not need to go through several spreadsheets or accounts to know how your business is performing. Cloud-based accounting provides a complete overview of your financial position with detailed reports, visualizations, and custom metrics.
- Responsive Tech Support
You don’t need to hire or pay for IT expenses when you run into trouble with your accounting software. Vendors of cloud-based software provide round the clock technical support through phone, chat, and email so that all your issues are resolved as soon as possible.
Cloud-based accounting solutions are easy to use and intuitive to your needs. You can scale as your business grows and receive meaningful financial insights that help you make data-driven decisions to increase your profitability and bottom line.
Storing information over the cloud makes your accounting highly accessible and cost-effective, improving the efficiency of your accounting process.