While having our head in the clouds is not usually considered a good place to be, this is not the case when it comes to accounting software. Cloud Accounting has changed the way businesses owners and accountants can access information and gain insight into how a business is performing. This information, in conjunction with support and analysis from key business advisors can become pivotal when making business decisions in a constantly changing and evolving environment.
So, what is cloud accounting?
A subscription to an online platform, such as Xero, moves the ‘books’ to the cloud and can be securely accessed online but the subscriber and uses they have invited. Profiles can be customised to suit the role of the user within the business. This file is connected to bank accounts that sync daily, ensuring data is current. The software will usually also have Accounts Receivable, Accounts Payable, Payroll and Reporting capabilities.
What are the benefits
- Complete – To enhance visibility & completeness, there are various apps & add ons that integrate with accounting software including point of sale data, inventory management and document management.
- Collaborative – Conversations with colleagues, accountant or other business advisors becomes streamlined & efficient with cloud-based software. You can be on a phone call, accessing the same real time data working through a query or discussing reports.
- Customisable – tailored reports are available at the click of a button and landing dashboards can be customised to capture key KPIs. In addition to this, a move away from traditional working structures is enhanced by cloud accounting, allowing software to be accessed anytime, anywhere. This eliminates the need for clunky desktop installation & paper files in most situations (tick for environmental footprint). Cloud accounting supports you to work in a way that is most effective for your situation.
- Current – data is refreshed constantly. Running reports, processing payroll, and posting journals is instant & integrations with bank accounts or external applications occur daily. This allows business owners to feel informed of their current position.
- Cost Effective – whether a small sole trader, or a growing SME, there are plans to suit every need. The benefit / cost is further highlighted when evaluating the efficiencies, features & output of the systems.
When used to its full potential and complimented by regular insight and guidance from key business advisors, cloud accounting builds an all-encompassing finance function for small business previously only available to large organisations with in-house departments. Talk to us at Accru Hobart about taking your business to the cloud and how we can help you.
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