Keeping on top of your finances can be difficult, especially for smaller businesses who may find that bookkeeping represents a steep learning curve.
Generally speaking, small business owners are run by entrepreneurs who are excellent at finding gaps in the market but are less talented when it comes to managing their finances. As such, many choose to employ accountancy firms to ensure their finances are in order. The accountancy industry is becoming increasingly more digitalised, with both firms and their clients being able to benefit massively from these changes. Cloud-based accounting represents one of these major shifts and has many improvements over traditional methods.
1. Access your data anytime, anywhere
When you use a cloud-based system, all of your information is stored on a remote server that is always connected to the internet. This means the client won’t have to worry about being at a specific computer or having to carry all of their information around to access it. Most cloud-based software can also be accessed via mobile, too.
2. Real-time information
When your data is stored in the cloud, you have a completely up-to-date view of your figures and current financial situation. As such, you will be able to make better informed decisions regarding your finances and future transactions. This is especially important for small businesses, who need to work dynamically within their industry, and cloud-based software allows them to do this in real time. Traditional accounting methods would involve looking over reams of paper and searching through endless spreadsheets; cloud accounting represents a significant step forward from the image of grey, old-fashioned accountancy firms.
3. Going paperless
One of the worst things about old-fashioned accounting is the sheer amount of paperwork that needs to be constantly referred to, organised and maintained. Not only does finding the correct information in these files take time, but just keeping the system in order can be a monumental challenge. By having all of your information stored on the cloud, you can easily filter and search for specifics without having to contend with files and folders, significantly increasing the speed at which you gather your information. Going paperless also helps your green and sustainability credentials too, which is becoming ever more important to clients.