Seven Reasons People Love Cloud Accounting

 

In case you haven't heard, there’s a major paradigm shift happening in the accounting world these days. Cloud-based systems like Xero, QBO, and FreshBooks are helping businesses save time, eliminate IT issues, and radically streamline their accounting workflows. As a result, cloud accounting is rapidly replacing desktop software as the leading choice for small to midsize businesses.

If you’re already doing things in the cloud, you know it’s a completely different ecosystem: lighter, faster, and easier. If you’re still using traditional software, here are seven reasons to consider making the switch:

1. Easier to deploy.

No more PCs, no more software, no more networks. Cloud accounting systems are easy to set up and require minimal IT expertise or maintenance.

2. More efficient.

Nobody likes doing data entry. Cloud-based systems allow you to automate most of the boring, manual work that traditionally plagues accounting by using bank feeds and bank rules.

3. Unlimited access.

With a cloud-based system, you can access your accounting any time and work from anywhere you want: home, office, mobile hotspot, small cabin in the woods, you name it.

4. Easier collaboration.

Cloud accounting allows multiple users to log in and work on the same system at the same time, even from different locations. You can also give your accountant access to the system and let them do their work virtually (a win-win for both sides).

5. Real-time financials.

Thanks to bank feeds, businesses can now download, code, and reconcile their accounting activity in real time. As a result, business owners can get accurate, consistently-updated financial reports whenever they need them (not just at the end of the month).

6. Highly scalable.

The cloud's open API framework allows businesses to start with a basic accounting system and then add more apps and functions as they need them: payroll, POS systems, e-commerce, cash flow management, time tracking, expense reporting, etc.

7. More secure.

Although this wasn't the case 10 years ago, it’s now common wisdom that online services are completely secure (banking, shopping, file storage). And the safest place to keep your data is in the cloud, because you’ll never lose it.

If you’re starting a new business from scratch, cloud-based accounting is practically a no-brainer. If you have an established business and you're using desktop software, moving your accounting to the cloud will involve some conversion costs and a 2-4 month learning curve… but the payoff will be worth it. The bank feeds and mobile access alone will make you glad you switched.

Legal stuff: This information is provided for educational purposes only and does not constitute advice for your specific situation.

William Keller