Whether you are a long term MYOB fan, new Xero fanatic or working with Reckon, Quickbooks or even Saasu, cloud accounting can be revolutionary for your business. Big statement but true. So how do we know? We have been using cloud accounting, more specifically Xero for our practice for a number of years and over 60% of our small business clients are now using cloud accounting systems too. We have experienced ourselves and seen first-hand how cloud systems can greatly improve a small business and more importantly a small business owners’ life!
So what are the 3 major ways we have seen Cloud Accounting improve small business?
1. Greater access to real-time data for better business decisions.
Have you ever tried to work out whether you can afford a new piece of equipment and whether you should finance it and over what time frame or even if you can afford to pay cash & avoid the expensive finance charges?
First thing you do is go to your desktop version of your accounting file then realise it’s not up to date. The bookkeeper is not due to come into next week, its only reconciled to last month and payments haven’t been applied to debtors yet. So your financial records are not going to give you the answer you need. Next you look at the bank account balance & end up making a quick decision based on the bank balance. You’re flying blind!
Cloud accounting systems can bring in bank data feeds daily meaning your bank balance is always up-to-date and it can also greatly increase accuracy of records. Your bookkeeper & accountant can also login remotely completing reconciliation tasks on a more regular basis. Time-saving and intuitive add-ons such as Receipt Bank or Shoeboxed can take your receipts & bills and enter them directly to the profit & loss saving precious time and ensuring source documents are always at hand.
2. Multiple versions & endless backups are a thing of the past
Desktop accounting systems require updates to be run annually if not more frequently. Without these software updates you can be dealing with outdated employee tax rates or software bugs. Tiresome updates need to be run on each computer that uses the desktop version of the software and if you’ve got a server or a network of computers it nearly always means the IT guy gets a call in.
Cloud accounting systems continuously upgrade their features and generally it is done why your catching up on your sleep so your business has little or no downtime with the accounting system. And the days of saving a backup onto a USB and posting it to your accountant are gone – they can access the exact same file as you whilst your staff continue to enter Sales
3. Flexibility & Mobility
Most cloud accounting packages give you the flexibility to upgrade your package to suit your business as it grows or as the characteristics of your business change. Integrated software or “add-ons” are also easily integrated with most cloud accounting packages and increase the power your accounting system. Add-ons can encompass time-tracking software, detailed & powerful inventory tracking, CRMs and Point of Sale software.
Business owners can keep a hands on role in their business even when they are out of the office with web-based and app programs. Meaning you can keep an eye on business whilst enjoying the well-deserved break or offer flexibility to staff working from home.
The benefits of cloud accounting for Small to Medium Business can be great. Time and money saved while adding flexibility and more work-life balance. So if you are considering the move from Desktop to Cloud what is the next step? Talk to our team of Chartered Accountants and qualified bookkeepers that know the cloud accounting options (including Xero, MYOB, QBO, Saasu, Reckon and Wave) and we can discuss with you what software will suit your business the best.
For a free 30 minute demonstration of Xero and how Cloud Accounting can benefit your small business please message us or give Karen a call on 07 3849 3816.