Nowadays, entrepreneurs can manage their business and track their business’ financial transactions in real time through technology. With Cloud in full force and gaining traction throughout the market, it is easier for business owners to oversee their business and manage their books. Because of this, many entrepreneurs are transitioning to online technology to manage their bookkeeping. Here are six benefits of bookkeeping on Cloud.
Advantages of Online Bookkeeping Services
Automation and Virtual Storage
Manually inputting data is tedious and time-consuming work. There is also the risk of your employee making a mistake while putting the data in your books. Bookkeeping online reduces this risk. With the use of automated features, you can also link the data from your sales and purchases from your bank to your books.
Storing data virtually also saves your office space and money. You don’t need to use papers and file cabinets to keep your transaction records. By going paperless, you are also contributing to environmental welfare.
Quick Access to Data
This is a notable benefit of online bookkeeping over paper based bookkeeping. The internet is everywhere, and by using any web enabled device, you can quickly access the records, files and reports of your financial transactions anytime and anywhere. This allows you to be flexible in managing and planning your business finances, even when you’re not in your office. You can also set up a dashboard showing important financial information like accounts receivables, account payables, and cash flow.
Online bookkeeping programs allow for multi-user access, so your accounting team can view files and effectively collaborate with you. You can also set up a dashboard showing important financial information and tasks.
Accuracy and Reliability
Third party systems can seamlessly sync and integrate your data to the Cloud bookkeeping program that you are using, so you can be assured that the records in your books are accurate. Your bookkeeping service provider can also give you the assurance that when you access an app or service in the Cloud, the service is always up and running (with no downtime or interruptions) and your connection is secure. With this kind of reliability, you’ll be able to get the data and perform the tasks you need efficiently.
Time Efficient
With online technology, data input, and data access is at the tip of your fingertips. You and your bookkeeper don’t need to consume a lot of time in encoding and retrieving data. You don’t also have to wait on lengthy install and set up periods to start your bookkeeping process. With Cloud, everything is hosted online. All you have to do is register, input a few click details and start making use of them. Cloud saves you valuable time.
Security
As a business owner, you may have concerns about online bookkeeping; however, storing data in Cloud is one of the most secure ways of information storage. Natural and manmade disasters like typhoons or fire may damage your computers and hard drives, making you lose valuable data. With Cloud, your data lives online on secure servers so it is safe from these sorts of things. As soon as you get back online, you’re back up and running.
Since your files are fully encrypted, only you and people you give access to can open it. Your data can’t be stolen or damaged. Bookkeeping on Cloud also lessens your risk of losing data because of corruption from computer bugs and viruses or machine damage. In addition, all your data are backed up for your peace of mind.
Cost Efficient
Most online bookkeeping systems come with complete packages that cover your business needs. Cloud bookkeeping eliminates manual tasks, allowing you to save money thru automation, lesser employees, and lesser electricity use. You won’t also have to pay for the upfront costs and fees of software licenses and hardware maintenance.
Bookkeeping Programs
Keeping a tight grip on finances is crucial for the success of small business owners and self-employed professionals. Choosing the right bookkeeping program is important because you will use it every day to track the money coming in and going out, create invoices, record payments, and run reports that analyze your business’ financial health. Here are some bookkeeping programs that you can use to make the task easier.
XERO
XERO is a popular accounting software application used by small businesses nationwide. This platform is affordable, usable and effective. Through XERO, you can create and track invoices and purchase orders, manage sales and set up scheduled payments anytime from your personal computer, or mobile device. If you have employees, you can also track payroll. It is comprehensive, customizable to fit your business needs and offer real time financial reporting.
Many businesses start small, but they don’t always stay that way. To save on cost, choose an accounting software solution that can grow alongside your business. These softwares do just that. Among the three, XERO offers the best features for small, growing and large businesses.
Unlike other accounting software programs that base pricing on the number of users each plan supports, XERO supports as many users as you wish to add. With XERO, you can simply add new employees to your account at no additional cost. The software also features over 700 app integrations and comes with a 24/ 7 email and live chat support.
Receipt Bank
Receipt Bank is a digital platform used to fetch receipts, invoices, bank statements and other documents to one digital dashboard so you and your accounting staff can process everything quickly, accurately and securely. All you have to do is scan, email, or capture the documents on your mobile phone and upload them to the platform.
Receipt Bank can also categorize your expenses for you, though it may require some manual set up. However, once your account is set up, you’d be able to save lots of time.
Hubdoc
Hubdoc simplifies your data entry by syncing your invoices, receipts, bills and other documents to your accounting software. Simply take pictures of your documents, link it to your account and develop usable data. You can connect it directly to your XERO subscription, so when you publish the document, XERO creates the invoice bill, credit note, or spend money transaction with the document attached.
Is It Time to Move to Cloud?
You didn’t start your business just to be surrounded with paperwork and record tracking. Managing your bookkeeping online thru moving to cloud can give you access to enterprise-class technology. It can also help your business act faster than its competitors. Cloud bookkeeping increases your business efficiency, helps improve your cash flow, and offers many more benefits.
Final Thoughts
Online bookkeeping has several advantages and using the right programs can make the lives of entrepreneurs easier.
ACT Bookkeeping Group is a XERO and MYOB Certified partner. We offer XERO based Cloud bookkeeping and develop packages for our clients to better help you with your bookkeeping needs. Our expert bookkeepers work remotely so we can work with any company located in Australia. We can even adjust to your company’s work hours.
Book a free consultation with us today.
