The internet has reduced the globe to a small village. Beyond socializing, business is happening each minute as entrepreneurs meet their clients online. It is now possible to make purchases and pay bills online. Banks have become accessible via internet banking, saving us the long queues at the bank.
Businesses are also adopting new ways of operation such as allowing people to work from their homes. With these new trends brought about by the pandemic and advancements in technology, the accounting profession is not left out.
CPA officers and finance departments will therefore have to brace themselves and align themselves with the changing trends. Talk of retooling.
The use of accounting software is not a new trend as accountants have been using them to bring efficiency to their work. However, most of the software has been limited to a specific desktop in the office premises, or a specific laptop, which can be limiting.
The use of accounting software is not a new trend as accountants have been using them to bring efficiency to their work. However, most of the software has been limited to a specific desktop in the office premises, or a specific laptop, which can be so limiting.
Cloud-based accounting software
Accounting and bookkeeping is now efficiently done using cloud-based accounting software. The accounting department is an integral part of every small or large business. Every department has a connection with finance in one way or another; hence, the designated staff may need access to some information from finance records.
An accountant can therefore key in information and have the same information available to the designated staff across the business. Businesses that outsource accounting services from an accounting firm, do not have to wait until end-month, there is a provision to see the state of your accounts on a need basis.
It could be a growing small business or an established one, we need to keep the accounting function in check while we focus on the main agenda of operation.
So if your business is looking to effectively manage its financial affairs and spend most of its time in growing its business, here are some reasons why you should switch to cloud-based accounting software:
Accessibility
With a cloud-based accounting system, you can work from anywhere at any time. Your data is safely encrypted and stored in the cloud, you only need to log in and work. This is different from the old-fashioned desktop accounting software which can only be accessed in the office or from only one device.
Saves Time and Cost
Cloud-based accounting software is operated in the cloud hence no need to hire an IT professional to maintain the IT infrastructure as in the case of desktop accounting software. The time and cost used to access the gadgets with the offline software become unnecessary.
Security & Back up
If you have used a desktop accounting software in the past you will agree with me that there is need to back up your data after every day and update the system in case of new updates. With the cloud-based system, your data is secure as it is stored in the cloud and you use the latest updated version of the system. The vendors also invest hugely on securing their system to prevent data interference, including multifactor authentication for Xero.
Easy to Share
When working with colleagues it is very easy to share data using a cloud system. The admin only needs to set specific permissions on what different users can see or adjust. This develops accountability from different stakeholders. Some systems like Xero have no limit to the number of users the admin can onboard. Invoices can as well be sent directly to the customers through the system to their emails.
Reduced Paper Work
A cloud accounting system reduces a lot of paperwork. For instance, Xero accounting software allows for connection with the banks for direct bank feeds into the system, making it easy to do reconciliation. Documents such as invoices from service providers or receipts from purchases, only need to be scanned and uploaded. We may therefore get rid of the many physical files in our cabinets as evidence of transactions & procurements.
Financial reports are prepared easily and shared with the directors with no need to print them.
Want to move to cloud-based accounting software?
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