What are the benefits of cloud accountancy for small business?
Cloud computing is becoming more and more common and as it continues to change how we use technology – from communication, music streaming to cloud-based document storage – it is also at the forefront for revolutionising the way we operate our businesses. With this, the advantages of a cloud-based accountancy package for a small business are significant.
With cloud accountancy software you are able to access your finances anywhere and at any time. With the creation of specially designed apps making it even easier to quickly access your finances across various platforms, as long as you have a working Internet connection, you can see your data in seconds. This naturally has notable advantages as it gives you the ability to view your accounts not just from a particular computer leaving you stuck in the office, but instead from home or on the move with smartphones and tablets.
With this level of functionality comes the natural anxiety about protection of data. The fact is that cloud security is generally world class and likely much better than if you were to use an onsite server. If you’re already familiar with online banking then you’re already familiar with using a version of highly protected cloud accountancy. Instead of logging accounts in journals or on personal computers, it allows for a much easier and safer way to store your personal monetary data. With automatic backups you will never need to be concerned with the loss of information, which is one less thing you have to worry about.
As everything ran by your supplier, you will always be on the latest version of the software. There is never a need to spend extra work-hours carrying out or overseeing an installation and no need to ever re-install software which comes in handy if you’re getting new computers. Software providers have also built their product with business clients in mind, gearing them towards ease-of-use, helping you to have more understanding and control as an owner.
For new start-ups this is the ideal way to cut your outgoings, as it is a cheaper option in its own right. There is no need to pay a lump sum upfront as you would with a desktop accounting package. With this service you are only required to pay monthly and as you’ll know, paying monthly obviously makes it easier for you to manage your cash flow and reduces initial spend until money comes back in. Another great benefit is that it doesn’t require any update charges, as they are automatically included in the price. This means you are secure in knowing that you are using the latest software without having to pay for the new version every time its upgraded.
A great benefit for SME’s whose financial knowledge isn’t their strength is the way in which cloud accountancy allows you to work in unison with your accountant. This allows that your advisor to easily assist you if you need any help in the recording of financial data or for example if you’re stuck recording certain transactions in your accounts. This as a result means that your accountant immediately becomes more accessible. They will be able to offer help quickly, increasing the ability to collaborate with the automating and inputting of data when needed.
The increase of control over your business is arguably cloud accountancy’s most beneficial attribute. It allows you as a small business owner to easily track cash flow, payroll and profit as well as dealing with less invoice payments and VAT. As it is so easy to operate and assess you’ll always have confidence and more importantly control over your finances. With that peace of mind, it means you can get on with what you want to be doing, running your business.