If you’re a small business owner or if you’re running a startup, you can’t afford to lose track of your business finances. Hiring an in-house bookkeeper may help you with this, but hiring a full-time employee to manage your books can be costly. You may not justify the additional expenses you’re spending on an in-house bookkeeper.
Thankfully, technology is changing the landscape of how many small business owners and startups manage their books. Bookkeeping online thru Cloud allows you to not only manage your financial records efficiently, it is also cost efficient.
Aside from these, Cloud bookkeeping gives you several other advantages over in-house bookkeeping. With cloud, you have real-time data access, automated data entry, data security and backup and an efficient means to collaborate with your team.
What exactly is Cloud Bookkeeping?
Simply put, Cloud is the internet. This means that your data is stored on internet servers, instead of your computer’s hard drive. This enables you to access your financial records and reports remotely wherever you are and whenever you want to.
The data stored in Cloud is highly encrypted so you don’t have to worry about your data getting hacked. Only you and the people you want to share your information with can access your files. With Cloud, your financial records are also safe from natural and man-made disasters like earthquakes, fire and typhoons, which may ruin your records if you’re filing them in paper or on actual computer hard drives.
Through Cloud Bookkeeping, you can oversee your financial transactions and manage your records and books faster and more efficiently, so you can focus on the essential tasks of running a business.
How Does Cloud Bookkeeping Work?
The process of Cloud Bookkeeping is like manual bookkeeping, except that you’re using an accounting software for an automated and faster processing. Your accounting software stores all files and processes securely online so you can maintain and access records of all your transactions.
Of course, you or your employees need to provide the necessary documents and records to the software. The great thing about using an accounting software is you can sync it to other programs like Hubdoc, Receipt Bank, POS inventory system, or even your own bank account for automated data entry. Your accounting software also allows you to do other bookkeeping tasks, like generating payroll, invoicing, and producing financial reports, online.
Accessing your records is also easy. All you have to do is open your browser on any internet enabled device- phone, tablet or computer. Then login to your online portal and work on your bookkeeping.
How to Choose the Best Cloud Accounting Software for Small Businesses?
There are many accounting software available in the market, so when choosing which one to avail, it is best to keep these few things in mind.
It is crucial that your accounting software fits your business needs. If you need a platform that allows you to track inventory, receipts or sales tax, your accounting software should be able to do just that for you. Identify and list down your bookkeeping needs and arrange them according to priority.
Determine how much you can afford to spend on accounting software. Set this budget and create a little wiggle room, just in case the software or service you want goes a little overboard. Evaluate the software well so you can make sure you’re getting good value for your money.
Research the software features to make sure that they meet your business needs. Know how secure your Cloud provider is and how system data are backed up. Ask if there are other fees and costs for certain services and their customer support system.
Your small business or start up may not always remain small. We recommend that you pick a solution that grows with you, so all you’d have to do when the time comes is upgrade your software features, and you won’t have to purchase a new one to meet the needs of your growing business.
What Cloud Accounting Software is Best for a Small Business?
There are many accounting software in the market, but we highly recommend Xero. It has a robust feature and a low starting price. This software allows you to send custom invoices, create purchase orders to attach to bills, track inventory, reconcile bank transactions to balance the books and capture receipts for easier record keeping.
As a small business accounting tool, it also stands out on the collaboration front. It includes unlimited users, and you don’t have to pay extra to delegate responsibilities. It also has multi currency support and expense tracking features.
MYOB is another accounting software that ranks among the best. It can calculate your cash flow, gains and taxes and allows you to see all of it in at a single glance. It also keeps track of your invoices, inventory, bills and payments, payroll and taxation. It saves you time from managing spreadsheets and manually recording every entry. In addition, MYOB helps facilitate your customers to pay directly on their invoices via credit card.
The best part is MYOB keeps your exchange rate and converts money to 150 currencies, allowing you to conduct your business globally.
Do I Still Need to Hire a Bookkeeper to Help me with Cloud Bookkeeping?
Many small business owners want to focus on growing their business and would rather spend more time on sales and marketing than managing books. Very few handle their books personally. If you don’t have time to manage your books, you definitely need to hire a bookkeeper. The good news is that you can outsource a bookkeeper to do these tasks. By outsourcing a bookkeeper, you can save more on cost.
Learn more about in-house bookkeeping vs. outsourced bookkeeping.
How We Can Help You with Cloud Bookkeeping
ACT Bookkeeping Group is an official Xero and MYOB partner. As a certified BAS agent, we provide cost-efficient accounting and bookkeeping services to help you grow your business without worrying about the paperwork. Our highly skilled Canberra bookkeepers can help set up your own Xero and MYOB account. We also customize solutions based on your business needs.
Cloud bookkeeping is the future of small businesses. Utilize the experience and knowledge that ACT Bookkeeping Group has accumulated over years of excellent service. Contact us today for a free consultation.