In the last few years, there has been a clear trend of companies moving to cloud based solutions to run their businesses. From CRM systems to Customer Service solutions, HR solutions and Project Management solutions, a plethora of cloud based B2B tools and options have sprung up to make managing your business easier.
One of the key functions of an enterprise is Accounting. It is also the function that entrepreneurs seem to dislike the most.
Historically, in most small businesses, the accounting function was traditionally done on an annual basis to fulfill the company’s statutory obligations. Businessmen used to bring bags of source documents, receipts, invoices, bills to their bookkeeper or accountant who would then record these transactions in EXCEL or an accounting system like MYOB or ACCPAC.
This is changing.
Accounting Today. Cloud Accounting
More business owners and entrepreneurs are appreciating the value of having timely and accurate information on their company financials to aid them in decision making and one of the ways this can be facilitated is by adopting cloud accounting platforms like XERO or QUICKBOOKS ONLINE.
While convincing accountants and companies to move to the clouds was initially a tough challenge, the acceptance of cloud has steadily risen over the last decade.
This is in part due to a better understanding of what “cloud” is and in part due to better security and internet speeds. This makes for a much better user experience when using cloud based solutions.
Advantages of Cloud Accounting
1. Not needing to maintain and update the software. Since the program and data are stored on remote data centers, you do not have to worry about updating the software or ever losing your data. All this happens seamlessly with better security.
2. Being able to access the software from anywhere you have internet. This makes it easier for smaller companies to work with remote teams on the same platform without significant investment in IT infrastructure.
3. More than just accounting. Most cloud based accounting software offer more than just basic accounting functions to help small and medium enterprises run their business more efficiently. Some common functionalities include:
- Invoicing – automatically generate invoices and email them directly to customers
- Bank Feeds – connect your bank accounts and get bank transactions automatically
- Dashboard – a snapshot view of the most important metrics of your business such as live cash balance, payables and receivables
- Payroll – manage your employees, deductions and salary payments
- Expenses – setup approval workflows around expense claims
- Mobile Access – access your accounts on your phone anywhere
- Real Time Reporting – Information in the system is always live and updated
- Integration with other apps – through APIs, most cloud based solutions are able to integrate, “talk” to each other and share data
4. Keeping financial data safe. With cybercrime becoming more prevalent, it is safer to store sensitive financial data on the cloud as the data centers they are on employ world class security and encryption.
5. It’s cheaper! Most cloud accounting software are offered as SaaS (Software as a Service) platforms and on a subscription basis. This makes it very affordable for small companies and startup to access the software without having to “buy” any expensive hardware and software.
If you want to know more about how your firm can move to cloud accounting, or would like our dedicated accounts team to help you setup and manage your accounts on the cloud, have a look at our simple all-in-one compliance plan starting from only S$100 per month. Speak with our client success specialist today.
You don’t have to wait until a new tax year to move to the cloud, data stored on manual systems or spreadsheets can be imported directly to cloud systems.
Having the right tool for the job is essential for every business. By streamlining accounting processes, keeping vital data safe and making tasks more accessible and flexible for everyone, accounting software is one tool no small business should be without.