Cloud accounting software is a digital solution for small businesses, freelancers, and sole traders that helps you manage your invoices, expenses, and taxes online. Accounting software is a cornerstone of any business. It helps you track your income and expenses, manage cash flow, and generally keep on top of things so you can pay your bills on time and accurately picture how profitable your company is at any given moment. With cloud accounting software like Xero bookkeeping, NetSuite, Sage, etc., you can access all of your financial data from anywhere with an internet connection. There is no longer any need to keep boxes full of receipts or install expensive desktop software at home or the office. You just need access to a computer with an internet connection! With this in mind, here are a few things you should know about cloud accounting software.
What is cloud accounting?
Cloud accounting software is a type of online accounting software that allows you to access your business’s financial data from almost anywhere. You don’t need to install anything or maintain any local servers – everything is stored online and accessible from anywhere with an internet connection. Cloud accounting software makes it easier for small businesses to manage their books, track their expenses, and file their taxes by storing all of this information in the cloud. There are numerous cloud accounting software available in the market these days for you to choose from as per your needs, such as FreshBooks, Xero bookkeeping, Zoho Books, Sage, and QuickBooks. Whether your business is just starting out or you want a tool that is more user-friendly than what you have now, cloud accounting software may be the answer to your prayers.
What should you know about cloud accounting?
Accounting software has been used by businesses to manage their financials for a long time now. However, traditional accounting software can be a nightmare when it comes to backups and maintenance. To help you deal with these issues, a new and upgraded version of accounting software are now available: cloud accounting software. Even if you go with accounting and bookkeeping outsourcing services instead of an in-house team, you can enjoy the benefits of cloud accounting software. The best outsourcing service providers use the top cloud accounting system to safely manage the finances of their many clients. In case you decide to manage your books in-house, you will have to hire experts to handle the accounting software.
However, before hiring an in-house expert or outsourcing partner, you need to know why cloud accounting is good for your business. Following are some points that you should know about cloud accounting:
It is always up to date
One of the best benefits of using cloud accounting software is that you will always have the latest version. You never have to worry about updating a piece of software or installing a patch or security update. Your cloud accounting software provider takes care of all that for you. This means you have access to the latest accounting features, as well as the latest security patches and updates. Even if you choose a software as a service (SaaS) provider, where you host the software yourself, you will still have access to constant updates. Since the software is on the web, you never have to worry about downloading and installing new versions. Simply log in, and you will have the latest features, patches, and updates.
Cloud accounting is inherently more secure
One major advantage of cloud accounting software is that it is inherently more secure. There are no local servers or software to be hacked, cloud accounting software is much harder to hack than traditional software. Cloud-based providers use state-of-the-art technology and often employ specialists in cybersecurity to ensure that your data is secure. There are multiple ways that cloud accounting software providers protect your data. Some use virtual private networks (VPNs) to encrypt and protect your data from prying eyes.
It can boost your productivity
Many of the best cloud accounting software solutions, like Zoho Books, Xero bookkeeping, etc., are seamlessly integrated with many other accounting software and tools, which means that you don’t have to waste time entering the same data in multiple places. Once you have logged your data and put it into your cloud accounting software, it is available to you in real-time – on your desktop, laptop, tablet, or smartphone. This means you can access it anywhere, making you much more productive. Once you have logged your data in one place, it doesn’t have to be entered again. For example, if you have a customer who pays you regularly, you will want to enter their details only once. Once you have logged that payment data, it is available to you in real time, so you don’t have to log in again to enter such details.
It has built-in collaboration tools
Another big advantage of cloud accounting software is its built-in collaboration tools, allowing you to work with others easily. Cloud accounting software allows you to invite others to view and edit your data, making collaboration seamless and simple. You can also set up groups, allowing you to invite your team members to view and edit your data but preventing them from accessing other teams’ data. These collaboration tools are built into the software, meaning it doesn’t have to be difficult to invite others to your data. You can simply click a few buttons to invite others to work on your data.
There are two main types of cloud accounting software: Software as a Service and Platform as a Service.
In cloud accounting, there are two main types, i.e., software as a service (SaaS) and platform as a service (PAAS). While both types of software are provided through the cloud, they have key differences. First of all, SaaS accounting software allows you to access the software, but you need to install it and host it on your own servers. With PAAS accounting software, the provider hosts it on their servers and gives you access to it through the internet.
The cloud has disrupted almost every industry, and accounting is no exception. Cloud applications have taken the accounting world by storm, enabling you to get much more done with much less hassle. Cloud accounting software has taken the accounting world by storm, enabling you to get much more done with much less hassle. It is always up-to-date, inherently more secure, and allows for easy collaboration.
By logging your data in one place, you can easily keep track of all your financial information and your client’s data. Cloud-based software means you can access your accounting files from anywhere there is an internet connection. It is easy to use and easily integrates with many other accounting software, allowing you to merge all your accounting data in one place without much extra effort, giving you a complete picture of your business financials.
You can use cloud accounting in-house by hiring experts with knowledge and experience in handling cloud software or opt for accounting and bookkeeping outsourcing services to help you manage your processes. Even when you outsource your accounting and bookkeeping, cloud accounting allows you to view your financial data in real-time as you can control who can access your data.