Category: Accounting Apps

7 Ways to Save Time and Money with Cloud Accounting Software

Posted on | by Jessica Weston | Leave a Comment on 7 Ways to Save Time and Money with Cloud Accounting Software

Cloud accounting software is becoming more and more popular, with many companies deciding to switch over. This type of software can really speed up and streamline your processes and give you a greater insight into your finances. In this article, we’re going to look at some of the ways that cloud accounting software can save you time and money.

1) Automated Invoicing

Cloud accounting software enables you to automate much of your invoicing process.  This means you can get invoices out faster, which helps to improve your cash flow. You’ll also have a digital record of all the information on an invoice, so it’s easier to keep track of who has paid and who hasn’t. Furthermore, your software will be able to calculate and add late fees for you and send automatic reminders to clients who are yet to cough up.

2) Better Cash Flow  Management

Managing cash flow is a vital part of running any business, but it can be difficult when you’re only using spreadsheets. With cloud accounting software, you’ll have access to much better tools for monitoring and assessing your company’s financial health. You’ll also save time because the automated invoicing features mentioned above mean you won’t have to waste hours chasing late-paying clients.

3) Expense Tracking

Another time saving feature of cloud accounting software is expense tracking. This feature enables you to keep track of all your expenses and log them into the system automatically. You can then compare your budget against your actual spending at any time so that you can see where money has been spent or saved.

4) Centralised Information

One of the best things about cloud accounting software is that it gives you a centralised view on all your accounts.  This is really helpful, especially for companies who have branches in different cities or countries around the world. All this information will be available to employees wherever they are and whenever they need it, meaning everyone can work more efficiently and make fewer mistakes.

5) Real-Time Reporting 

Another great benefit of cloud accounting software is real-time reporting.  This means that you’ll be able to access your reports and information whenever you need it, so if something crops up or a decision needs to be made quickly, it’s right there at your fingertips. This enables you to make sage and snappy decisions about the future of your business. 

6) Accessibility

Another benefit of cloud accounting software is accessibility. Thanks to cloud technology, you’ll be able to access all your accounts wherever and whenever you need to. Most major cloud accounting providers have mobile apps that enable employees to log expenses or update information whilst on the go.

7) Cloud Security

Finally, cloud accounting software provides you with more security than traditional desktop software does. All of your data is encrypted and backed up regularly so if something happens to one version of a file, there are always back-ups available which can be restored in mere minutes. You’ll have peace of mind knowing that your important data is safe and secure. Data breaches can cost businesses thousands – or even millions – of dollars, so this is a real advantage.

Conclusion

There are numerous benefits of cloud accounting software, and they impact your entire business. This technology gives you greater financial visibility and thus empowers you to take well-informed steps towards a stronger and more profitable business. Whether your business is well-established or just getting started, it will definitely benefit from the use of cloud accounting software.

6 Reasons to Swap Spreadsheets for Cloud Accounting Software

Posted on | by Jessica Weston | Leave a Comment on 6 Reasons to Swap Spreadsheets for Cloud Accounting Software

Many small business owners have been using spreadsheets to do their accounting for years now. Whilst spreadsheets may seem like a convenient and cost-effective way of managing your finances, advances in cloud accounting software mean that your business could most likely benefit from an upgrade. Let’s take a look at why you should swap your spreadsheets for cloud accounting software, and how to make the transition smoothly.

1. Data Entry

Not only is manual data entry mind-numbing, it also makes it very easy to make mistakes. Just one typo could lead to major errors, including mistakes on your tax return which may result in missed deductions or penalties. 

Cloud accounting software, however, allows you to upload your receipts and invoices directly and keep accurate records, removing the need for double data entry and reducing the likelihood of mistakes.

2. Lost Data 

The larger a spreadsheet becomes, the more likely it is to either crash or corrupt, resulting in lost data. However, your records don’t cease to matter once your tax return is filed. It’s important to keep your records for audits and to track the company’s progress over time. Leaving your data in a spreadsheet leaves it vulnerable, whereas cloud based accounting software provides multiple layers of protection to keep your information safe.

3. Integration

Spreadsheets don’t tend to integrate well which can lead to a lot of stress and wasted man hours. Saving a spreadsheet in a new location can corrupt files and break links, causing countless problems. However, cloud accounting software automatically syncs your data across a range of devices and is designed to integrate well with other software, permitting seamless sharing and collaboration.

4. Audit Trail 

Spreadsheets don’t create a clear audit trail in the same way that accounting software does. For example, you may see that something was changed but be unable to identify the exact details. It’s important to keep a step-by-step record to keep your company safe and your records accurate. Accounting software allows you to easily keep a log of all changes made to your files, dating right back to the moment they were initially created.

5. Time 

Spreadsheets tend to be much more time-consuming than cloud accounting software, especially if you’re working with a high volume of data. Using spreadsheets requires you to spend a lot of time on data entry, preparing reports and verifying information. This could cost you days’ worth of man hours! With cloud accounting software, on the other hand, these processes take mere minutes to complete.

6. Collaboration 

The sharing functionality of traditional spreadsheets tends to be slow and can become confusing when multiple people try to work on a document at once. Cloud accounting software is designed to be collaborative and, as mentioned previously, automatically syncs across all devices, permitting seamless sharing and creating an accurate audit trail.

How to Choose the Right Cloud Accounting Software

The right cloud accounting software for your small business will depend on your particular requirements, and it’s worth asking your accountant for recommendations. We recommend considering the following:

  • Which systems do you want to integrate the software with?
  • How many people will use the software?
  • Which functions are most important to your business? 
  • What is the upfront cost or subscription fee?
  • How much training is required?
  • What support is provided?
  • Is the software scalable as your business evolves?

Summary

If you’re still using spreadsheets for your small business accounting then it’s most definitely time for an upgrade. In fact, using spreadsheets is almost as outdated as working with pen and paper! Cloud accounting software can save you a huge amount of time and money, as well as protecting your data and maintaining more accurate records. For a relatively small investment, it offers a very large return.