Cloud accounting provides businesses the ability to work faster and smarter. Traditional accounting methods and legacy software are time-consuming and prone to inefficiencies. Cloud accounting for small business saves you time and money by automating repetitive tasks and streamlining your accounting process with modern features and a light footprint.
Shifting your accounting to the cloud also makes it easier to outsource accounting services to certified professionals. When you outsource accounting services for small businesses, you free up the time and resources to focus on your day-to-day operations and the value you provide to your customers.
Common Issues With Traditional Accounting Software
Traditional accounting software is generally hosted on a single computer and can only be accessed in limited local scenarios. The software can be cumbersome to use and presents many challenges to small businesses. Here are some of the most cumbersome drawbacks to using traditional accounting software:
- Data is not automatically assured to be up to date in the system.
- Limited user access hinders key parties from accessing necessary financial data requiring local IT to take on additional work for simple sharing.
- Creating local backups is expensive, time-consuming and difficult.
- The system only works on one computer or local server. Data must often be stored on a portable device like a USB drive, potentially creating multiple versions of documentation.
- Upgrading the system is costly and time-consuming.
These problems lower your operational efficiency and can lead to a stressful office environment where your accounting team is always playing catchup.
What Is Cloud Accounting?
Whereas traditional accounting is performed using a program hosted locally on a computer’s hard drive, cloud accounting is accounting that is performed with software that is hosted in the cloud. With cloud accounting, instead of installing and running programs on a desktop computer, you pay a monthly subscription for software that you can use on any device you select, anywhere in the world.
Data is stored “online”, similar to the information in your online banking account. As a small business owner, a cloud service provider storing your sensitive data may be concerning. However, be aware that cloud storage is one of the most secure ways to store data. Cloud accounting platforms employ extensive security measures and continually improve the system for optimal security, ensuring the utmost protection for client data.
Having sensitive information stored remotely mitigates the risk of in-person data breaches. For instance, if someone stole your laptop, they would not be able to access your accounting data unless they also had the login for your online account. In addition, two-factor authentication may be used for an added layer of security, ensuring that anyone with one stolen device (such as a laptop) cannot access your account without first authorizing the access from a second device (such as your smartphone).
Sharing data with key personnel is also safer with cloud accounting. Cloud accounting software allows you to invite users to view specific information and also allows you to control their level of access and precisely what they can view, edit, or save. This is more secure than the traditional way of sharing a USB drive or simply emailing your file.
What Are The Benefits Of Cloud Accounting?
Cloud accounting software comes in many shapes and sizes and you can find solutions to perform a wide range of accounting and bookkeeping functions. Each of these solutions provide different benefits but there are some underlying advantages to using cloud accounting software:
- The ability to access data from any location or device: With Cloud accounting, you don’t need to worry about using a specific computer or saving data on a USB drive and taking it back and forth from the office.
- Data is updated in real-time:Cloud accounting software ensures that all your accounting data is always up to date. Being able to access real-time information will allow your business to speed up its decision making and share data in realtime.
- Automation of manual accounting and bookkeeping processes: Cloud accounting software allows you to automate transactional work like payroll, expense processing, bill pay, bank reconciliations, and more.
- Reduced costs: Cloud accounting software does not require the same costs as traditional software including system administration, maintenance, upgrades, and others.
- Easier to go paperless: Storing data in the cloud will reduce the need to physically store paper documents. This lowers the cost of printing considerably, frees up much needed office space, and benefits the environment.
- Integration with other cloud platforms: Cloud accounting solutions integrate with other cloud-based software and will allow you to work seamlessly across platforms. Popular integrations include payment processors like Paypal and Square as well as ecommerce platforms such as Shopify.
- Automatic backups and updates: Cloud accounting software is updated automatically so you never need to worry about having the latest version. Data is always backed up in the case of an unplanned mishap.
- Allows for scalability: Cloud accounting solutions are built to grow with your business. The ability to automate repetitive tasks in the accounting cycle reduces the increase in work normally associated with increased transactional load.
Work Smarter By Partnering With Cloud Accounting Professionals
A unique advantage of cloud accounting is that it makes partnering with experienced accounting professionals seamless and easy. Outsourcing bookkeeping to a professional accounting firm provides a competitive edge and allows your company to grow without having to employ an entire department in-house (that needs to expand as you do). Your time is best used focusing on the core functions of your business, not the fastidious details of accounting and bookkeeping.
Lloyd & Hodge provides professional tax and accounting services to save you time to focus on what you do best. Our bookkeeping service runs on our secure digital cloud platform and provides access to reliable and up-to-date data, no matter where you are. Our system is completely paperless and frees you from keeping endless paperwork on hand, only to be dug up once a year for extra tax and filing work!. You can easily stay on top of everything with regularly scheduled performance reports, easy to use software, and digital backups of all your important documents.
Contact us today to take accounting off your plate and into the cloud.