Seven Reasons People Love Cloud Accounting

 

In case you haven't heard, there’s a seismic 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 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 24/7 and work from any location you want: home, office, mobile hotspot, small cabin in the woods, you name it.

4. Easier collaboration.

The real beauty of the cloud is that it allows people to log in and work on the same system, at the same time, from different locations. This is a complete game-changer for franchises and multi-location businesses. You can also give your accountant access to the system and let them do their work remotely (a win-win for both sides).

5. Real-time financials.

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

6. Highly scalable.

The app ecosystem allows businesses to start with a basic accounting system and then add more functions as they need them: POS systems, e-commerce, A/R and A/P 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 safe and secure. Also, the best 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 unlimited 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