Cloud accounting software is an innovative form of bookkeeping that many business owners have benefited from in recent years. In a bid to improve operations efficiency and obtain a clearer view of cashflow, businesses worldwide, including Malaysia, are rapidly switching to cloud accounting. It’s one of the most critical competitive advantages the Internet era has given businesses, yet one of the easiest to attain.
From increased engagement to real-time data access, cloud accounting offers businesses many benefits. In this post, we’ll walk you through the most promising advantages companies stand to gain from integrating cloud accounting into their business operations.
1. Clear Overview of Your Cashflow
It’s undeniable that cloud accounting will give you better control over your finances. Cloud-based accounting software gives you a clearer breakdown and detail of all transactions. The debits and credits are well outlined to provide an in-depth insight of your business’ cash flow.
Today’s business leaders know that business is no longer constrained to the office. One of the beauties of cloud accounting is that it offers you the flexibility to access your financial data from anywhere, anytime. Bookkeepers and accountants can generate reports, add transactions, and conduct analysis from their homes or while on the go – as long as they can access to the Internet. Cloud accounting removes all the barriers of time and location compared to traditional accounting.
Data protection is one of the highest priorities of every business today. Too many have suffered costly losses of sensitive information due to security breaches. Businesses using the traditional accounting method with data stored on a computer will risk having their data stolen or tampered by hackers. Even data stored on local servers can fail, making it difficult for retrieval.
Cloud-based accounting software is designed with security concerns in the back of the mind. It uses heavy-duty encryption to enhance its security control, making unauthorised access impossible and protect sensitive information.
Cloud accounting fits well for small businesses and startups. The software comes with no upfront cost to purchase expensive hardware. Companies only need to invest in a monthly or yearly subscription that is far more affordable than the investment required to maintain office computers and servers. With cloud-based accounting, you do not have to hire a team of IT professionals and spend on maintaining hardware. The money you save can be channelled into other key areas to spur your business’ growth.
5. Multiple User Collaboration
One significant benefit you stand to enjoy with cloud-based accounting software is the ability to collaborate with a team of people and sharing information easily. Anyone familiar with traditional accounting will know that due to limited account access, transferring data means saving it on a memory stick and physically bringing it to the intended person.
With cloud accounting, you can send data to colleagues with just a few clicks, no matter where on the globe they happen to be. With a mobile device, web browser, and Internet connection, collaboration becomes effortless.
6. Reduced Paperwork
If your dream is to transition to a paperless office, cloud accounting is one of the biggest steps you can take today. Traditional accounting means printing all your financials and accounting records on paper. Not only it is labour-intensive and costly, it is also not environmentally friendly. Storing accounting documents can be costly and it takes up precious office space.
Cloud accounting reduces your reliability on paper for your financial and accounting records. You can easily generate reports and statements to send via email, eliminating the cost of printing and delivering through courier service. You do not even need to store the documents in a physical location as all digital data is automatically stored in the cloud.
7. Real-Time Analytics
With cloud accounting, you have access to your financial and accounting information real-time. Many cloud accounting systems come with great reporting tools that enable you to generate detailed analytics with graphs and charts, to provide a better cashflow statement for you to make well-informed financial decisions.
The Bottom Line
If you are struggling with your current accounting method, now is the time to consider adopting cloud accounting and take advantage of the many benefits we mention in this article. Cloud accounting saves time, effort, and operational cost; offers you peace of mind. It reduces your dependency on paper, and enables your business to operate efficiently to be more competitive in this new digital era. For more information, feel free to get in touch with us.