5 Benefits of Cloud Accounting Systems
As technology continues to evolve, so do the ways entrepreneurs harness it to streamline their business practices. The emergence of the internet as a primary form of modern communication now allows even the smallest business to tap into a nearly limitless pool of potential clients. Mobile technology gives companies the ability to manage daily tasks from the road at any time of the day or night. And cloud computing fills in the gaps for remote productivity, allowing you to access your entire data storage stream from across the room or across the continent. One of the most interesting perks to come out of this innovation is cloud accounting. It’s the end of limited accounting software, and the beginning of continual access to your financial records. Here are five benefits of cloud accounting systems.
Since it may be the most important benefit to a small business, the first on this list is lowered costs. Cloud software never requires purchasing updates. Once you have your system in place, it will maintain itself with no effort on your part, and no additional expenditures. And as your company grows your cloud accounting system will seamlessly grow along with it. No waiting for the addition of new servers, no added overhead and no extra hardware costs.
As with all cloud computing systems, you’ll also have a level of access to your accounting systems that you’ve never experienced before. This is truly worldwide service, with no limits due to geography, borders, time of day or physical storage. As long as you have an internet connected device and decent broadband service you can access your financial data from wherever you may be. No more panic because you left a document at the office before a long business trip. And no more delays in achieving the results you’re looking for because you need to fax or mail documents to a potential investor.
Cloud accounting systems also often come with some incredible new features. Again, because you never have to pay for an upgrade any improvements your software provider makes will instantly be available to you and your team. One common bonus feature in most cloud accounting systems is the ability to manage the finances of multiple companies at once. This is crucial if you have the sort of business that requires setting up additional LLCs or sub-divisions that are a part of your overall business strategy but must submit separate tax documents. You can use this service to customize your financial tracking per the needs of each company, while managing them as a cohesive whole.
If you’re experiencing the growing pains of a small business trying to expand, one of your core frustrations is probably IT staffing. Dependable IT professionals are quite expensive, and if you manage all of your technology in house there’s simply no way around adding to this department as the rest of the company grows. With cloud accounting systems, the IT is built in and not your responsibility. The cloud computing company you contract with maintains responsibility for their servers, their hardware and their storage, and any issues will be resolved on their end. That means you can deploy your IT people in a more strategic manner, placing them where your company will receive the most benefit.
Finally, you’ll enjoy improved performance across the board. Cloud accounting is all about real-time tracking and digital dashboards that put all of your financial data easily at your fingertips. With this level of interaction you’ll never have to wait on your accounting firm to report back each quarter before making a strategic adjustment. You’ll adapt faster to your financial realities, allowing you to take advantage of the positive and minimize the negative at every turn.