More and more SMEs are switching from traditional desktop and manual accounting methods to cloud accounting. Thanks to its improved security and accessibility, that allow users to collaborate and communicate efficiently. Cloud-based accounting software is becoming a mainstream accounting tool.
If you are still stuck with the traditional accounting methods to manage your business finance, it’s time to switch to cloud accounting. Here are some tips that help ease the transition so your organisation can reap all the goodies a cloud-based accounting software has to offer.
1. Understand the Benefits
Transitioning to cloud-based accounting software can be daunting. It is important to understand everything it entails before you start. This will also help you identify the main objectives and goals to set for and share with employees and stakeholders for support.
Here are some important objectives you can set:
- improve process efficiency, so you have more time to focus on growing your business
- boost your business financial transparency
- achieve up to date data for better cash flow management
2. Educate the Team
Before you switch to cloud-based accounting software, ensure that your organisation’s team and stakeholders understand this initiative’s objectives and goals. Educate them on the positive impact and benefits this innovative accounting method will have on them individually.
You will need all hands on deck to achieve a smooth transition. This means the staff has to be privy to all the details about cloud accounting. A formal statement that outlines the transition process and all the benefits the new system offers might be helpful in getting them on board and support the initiative.
People are generally against change, be it good or bad. If your organisation has a long-established routine and processes of doing things, you can expect some resistance to change. Keep in mind that nobody can learn a new system overnight. Be patient and get all the technical support the software provider has to offer during this transition time.
3. Train Your Team
Integrating cloud accounting into your business will be of little use if the staff responsible for your financial records has little to no idea of how it works.
4. Transfer the Data Accurately
Once you’ve decided to make the switch, migrating your existing financial data onto the new system will become a huge priority. Some cloud accounting software provides a straightforward guide on how to do a bulk transfer of data. Be sure to look out for the guide or get help from the software provider if you are unsure. This will save you time and resources from the old fashion manual data entry. After the initial data transfer, you can then enjoy the automation features of the software you choose.
5. Choose the Right Time for Transitioning
Timing is another critical factor to consider. Some businesses prefer to do this at the end of a fiscal year; some are comfortable moving to a new system at a quarter-end.
Once you have set a date, make sure there is a cut-off date to start using the new system and discontinue the current one. You may consult your cloud accounting service provider on which timing suits your business.
If you want to revamp your business’s accounting and cut down your cost and time spent on the process, cloud accounting is the right choice. Implementing this innovative accounting method is also a great way of introducing a new culture into your organisation. We hope these ideas will guide you through the transition process. If you need to talk to someone about how cloud accounting software can help your business, feel free to get in touch.