Cloud Accounting: Is it Right for Your Small Business?

cloud accounting

Technology changes and updates so rapidly today that we often forget how new our basic systems are. iPads have only been around for 9 years! Apple’s iCloud was only introduced 8 years ago. It’s been less than a decade since revolutionary technology has changed the way we do business, educate, and entertain ourselves. It’s understandable if you aren’t on the cloud accounting bandwagon yet, but consider making the change sooner rather than later. Small business can only benefit from a transition to cloud accounting.

Any business can succeed with QuickBooks online. It saves time, space, and money; it only requires an Internet connection and a computer or tablet. Even if your business doesn’t have Wi-Fi, you can use a tablet with a cellular connection. If you’re not sure if cloud accounting is right for your business, let’s look at what you’ll be gaining.

Saves Space

cloud accounting

Keeping volumes of accounting records, filing cabinets, and ledgers takes up valuable square footage of your office space. Converting to a cloud accounting system allows you to digitize your records. You’ll happily send your old paperwork to the shredder and enjoy your de-cluttered office.

Saves Time

Since the software is web-based, you can enter transactions as they occur. Whether you are on a business trip, accepting warehouse deliveries, or purchasing supplies, you can open the QuickBooks app and log your entries in real time. No more piles of receipts and purchase orders to be logged weekly or monthly.

You can also give individual logins to several employees to make them responsible for recording their own transactions. This means your bookkeeper won’t have stacks of receipts to enter, and they can focus their work on ensuring accuracy and compliance.

Saves Money

Cloud accounting means that there are no software upgrades to pay for. Developers push through website updates so you are always operating on the most up to date system.

QuickBooks is like one-stop shopping for all of your bookkeeping needs. If you’re using different software to record purchases, generate receipts, manage payroll, and monitor inventory, you can shift everything under the QuickBooks umbrella. This will save you on separate software purchases.

You’ll be able to make more informed business decisions because your numbers will always be current. Placing new orders, launching marketing campaigns, and hiring employees are expensive decisions that require accurate financials.

Cloud accounting also makes it easy to stay current with ever changing tax laws. Your deductions and obligations will be updated automatically as new laws go into effect. This simplifies your bookkeeping and protects you from future audits.

It’s safer

cloud accounting

Keeping your accounting data physically stored on site has many risks. You are at the mercy of your location; if something happens to your office like a fire or flood, you will lose all your information. Files stored on hard drives, either external or internal, run the risk of disk failure. Data recovery is expensive and often unsuccessful. Creating backups of your files is time-consuming, and may not contain the latest information. Converting to cloud accounting means that your files will be stored on a secure server off site.

How to get started

Chances are you don’t have a lot of free hours in the day to spend converting documents to digital. Enlist the help of a professional bookkeeping firm with experience in a cloud transition. Prestige Bookkeeping offers a complimentary consultation to help assess what services will work for you. We’ll help make your path to the cloud seamless.

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