If you’ve been thinking about making the move to a cloud-based accounting system, you would not be alone. Cloud technology has impacted many business aspects, including making your business’s financial aspects more accessible and efficient.
Cloud-based accounting moves your accounting from being hosted on your hard drive to an online platform. Cloud-based platforms like QuickBooks and Xero offer essential features that will save you time and money, freeing up your time to focus on other important business activities.
Here are four reasons to switch to a cloud-based accounting system.
Efficient invoicing
If your business relies heavily on invoicing, online accounting systems can be incredibly efficient. Emailing invoices to clients will be easier as they send directly through the software and track how long ago the invoice was sent out and if the invoice has been viewed.
Clients can pay you via the link attached in the invoice, making the payment process easier for them. In return, this can increase the likelihood that they’ll pay you sooner. Your platform will automatically mark the invoice as paid if they go through the payment system. If their payment is late, the system will alert you.
Furthermore, you can set up your software to send automatic reminders about late payments. The taxes are automatically calculated for you, and you can set up recurring invoices and retainers to further automate your invoicing.
Paperless accounting
Managing your accounting through a cloud-based system allows you to step away from paper accounting. You don’t have to worry about where or how to store years of paperwork and files because everything is stored securely in the cloud. Likewise, you don’t have to go through archives to find receipts from years ago. You can easily access the information through your computer.
Paperless accounting makes it easy for you to share your financial records with your bookkeeper, accountant or anyone else who may need to contribute to your finances. You will no longer have to mail physical copies of your financial transactions and statements. You can email them the digital copies or provide them with access to your software.
Accessibility
With cloud-based accounting systems, you don’t have to be in the office to access your financial information. You can see your reports and ledgers anywhere, from any device. If you want to work from home, you can log in and access your software from your device if you want to send invoices, check your reports, or manage expenses.
Accurate reporting
An essential component of running your own business is reporting. Accurate reporting enables you to manage your finances better and understand your profitability. It is crucial for making the right decisions for your business.
Cloud-based accounting provides reporting with a click of a button. You can easily access cloud-based systems’ profitability reports, income and expense reports, and year-end reports.
The information is available to you automatically, so you don’t have to waste time with a calculator manually going through every invoice to see your numbers and make sure they balance. By keeping your records in a cloud-based system, like Quickbooks or Xero, you can easily generate accurate reports.
Final thoughts
Suppose you currently have your accounting information on your computer hard drive. In that case, it is definitely worth looking into cloud-based accounting to see if your business can benefit from the change. Given the ease of accurate record-keeping and invoicing, combined with the accessibility of a paperless system, you may find cloud-based accounting software is the right system for you.
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