Are you familiar with the terminology called cloud accounting software? It is probably a phrase that marketing people or consultants frequently use in their presentations or talk shows. However, what do you mean by “cloud solution” and is it the correct accounting process for your workplace; keep reading to learn the definition of cloud-based accounting and why you need it now for your business growth. Cloud computing might be the option you’re looking for that ensures the safety of your information/data as well as a streamlined accounting process.
Content Outline
What is Cloud Accounting?
In cloud accounting, an accounting software setup is in place on a secure server. Along with employees, the owners can operate and access accounting records, reports, and financial statements remotely from the company computer as long as there is internet access.
A cloud accounting system permits users to access the application remotely through a safe warehouse located somewhere in the world, online. All data of the users is kept in the cloud providers, which run their computation and securely save and return. Cloud technology enables the business to adjust to company growth by designing processes and procedures.
How Does Cloud Accounting Function?
Cloud-based accounting in business is made available on the internet safely through web-based software which is mainly aimed at a streamlining process for business. The owners of small businesses as well as their finance teams can now access all the crucial information that is being generated by their operations in the different locations; they can, therefore, make the required collaboration and financial reporting easier.
Customers are able to use software applications by means of the network or the internet through a cloud application service provider. The cloud-based software is easily accessible since each company’s employee can log on to the cloud using any device. In a finance team or a remote team or branch, the same members can access the necessary key financial data or financial records. Efficiency is always accomplished by having everyone in sync with one another through time and cost savings.
Cloud computing ensures data security, and through your account, you may access only those data backups and disaster recovery features you desire to use. If something unfortunate like a fire, catastrophe, or technical failure with company computers happens, your data is safely protected by “cloud secure.”
Cloud Accounting vs Traditional Accounting Software?
What sets cloud accounting apart from traditional accounting software is that it is hosted remotely, so you and your co-workers will have an opportunity to access all data simultaneously from any point rather than being obligated to place yourself in one place, namely at your office. With cloud accounting, you can share information and access the system at any time, and you won’t be overwhelmed anymore by the paperwork that comes with old accounting.
8 ways to improve your business using Cloud Accounting Software
1. Get Financial Access at Any Time from Any Location
Cloud-based software programme avails you with the ability to access your financial data from anywhere, at any time. This is also a time-saving process because you do not need to download the software and update it manually, since this is hosted on the cloud remotely. The software vendor can give you a mobile app too, which makes it possible to reach the figures from anywhere. This system will provide you freedom to neither be confined in your office nor sit there to see your accounts and how your cash flow is.
2. Get Latest Information and Insights on Your Business
Cloud storage provides you with a transparent view of your current financial status when you are connected to the cloud. With this, you will be in a better position to make reasonable decisions about your business’s financial planning. For the traditional method of accounting, you would do the job of searching through the pages of paper information covered with figures only to get accounting data reports. Being able to now use all this data at the touch of a button enables one to comply with ever-growing business needs efficiently.
3. Automation and Time Saving
There is software that can now automate your workflows after you enter data to save your precious time. For instance, insert your vendor information and design a process that will pay the vendor on the due date every month. In this process, you can also set up a system that automates the sending of invoices to your regular customers.
4. Simple and Better Collaboration
By using an online accounting application, your accountant will find it simpler to work with you. You can easily make summary reports on the cloud which your accountant would need. Moreover, you can further ask your accountant to have access to the software, which will enable him/her to obtain your numbers at any time in case of need. Employing an online accounting program you can also set different access levels to employees to financial information. Taking a step further, if one of your employees is processing the payroll, you can give them access to payroll only without financial information or bank accounts.
5. More Accurate Accounting
One of the major advantages of using cloud-based accounting system is that the issue of accounting errors will be reduced since the relevant financial information will be entered in the same place. If you record your income and expenses constantly, and put the transactions into their respective categories, you can generate the report that is fully accurate at any time.
You don’t need to learn various formulas and tricks that you often use when you work in the excel sheet as you do in the spreadsheet. As long as you are regularly using the software to input your income and expenses, you will be able to receive precise reports on your financial situation.
6. No Need Software Installation
Online accounting software is web-based, so you don’t need to fork out the cash to purchase any software to run it on your computer.
While other software programs require separate licenses and have to be installed on each device, cloud access is available through a web browser or mobile app allowing you to log into your account. Moreover, you will also save on the cost of hiring an IT department to deal with issues such as software upgrades or general technical problems.
7. The Tech Support Access
One of the great advantages of cloud-based finance software is the availability of tech support.
With our technical support via telephone or chat and the instant ability to access our knowledgeable technical professionals available to you, you will have a tool you can pick up for troubleshooting any issues that might occur with the cloud-based software. So, within the organization, you may have such an opportunity to save the company time and money by outsourcing the software and not hiring an IT representative.
8. Paperless
The paperwork load can be huge and extremely difficult to handle when it comes to managing finances.
Having to go through all those expenses, receipts, and invoices is simply long-tiring. From a cloud-based accounting software program, you can enter your data into the cloud directly as soon as you complete the paperwork. Once these details are moved into the software, you will get a better picture of your finances in real-time without a need to flip through the papers. The automation will allow you to limit the risk of human errors in data entry or loss of significant data and result in the process being more efficient in regards to managing your finances.
Is Cloud Accounting Secure?
You could be thinking about the safety of your financial data stored in a virtual cloud system. The cloud platform hosting service places your data under encryption, transforming it into a hidden, invincible form of code, for access and storage. These cloud applications are secured just like the ones used in making financial and online banking transactions secure.
The best accounting software from the cloud includes the security measures below:
- Well-protected facilities
- Personnel responsible for security
- A backup server located off-site, operating automatically
- Routine security assessments
- Advanced digital security software ensuring high-level encryption for both inbound and outbound data
- Several isolated networks
- Various user authentication mechanisms integrated into the system
- Personnel exclusively focused on combating malware
- Support services for customers and technical assistance
- Updates applied automatically
6 Best Cloud-based Accounting Software in the Industry
FastLane Powered by Xero
FastLane is glad to be associated with Xero as the cloud accounting software business partner, whose potent tool is used to enhance accounting and other processes of the businesses of the clients. The Xero-powered systems we offer are affordable and productive alternatives for businesses that need an experienced financial management consultant to perform smooth integration and improve financial process optimization.
The FastLane advisory catering to the needs of its customers uses Xero as its trusted cloud accounting platform. Our skilled team enables the use of Xero’s stronger features for financial statement preparation, bookkeeping, and others, which ensures smoother processes, increases accuracy, and can bring businesses to success.
The combination of FastLane’s professionalism and the features of Xero provides our clients with the power to run their finances with confidence, convenience, and security. We offer businesses the opportunity to do well in the present dynamic and fulfilling environment, where competition is very fierce.
FreshBooks
The FreshBooks cloud accounting solution is a full-service system that perfectly matches the boxes one can check the security-reliability-technical assistance care and is easy to use.
NetSuite ERP
The NetSuite ERP, which is short for Enterprise Resource Planning, is a full package of various business software products provided by the tech giant, Oracle. It can be configured to a dedicated solution and is network-friendly through third-party communications.
QuickBooks Online
QuickBooks is an accounting program package a software targeting small and medium-sized enterprises. It promotes the business to make payments, manage payroll, and process accounts online.
Zoho Books
Zoho Books is also a professional accounting software package that provides businesses with information like expenditure tracking, cost estimates, and invoice issuance.
Bonsai
Bonsai provides invoicing functionality, as well as client and project management for its small business customers, and the use of different templates is unlimited. Bonsai’s book focuses exclusively on small-scale enterprises like freelance musicians and life coaches.
Conclusion
The cloud accounting system also makes it easy for businesses to achieve greater efficiency and organize effectively because of its mobility and organization qualities. An example of this is that cloud-based accounting permits individuals to invoice a client when they are traveling and maybe just after a service has been provided. You earn more and more money in a short period. Cloud accountancy with comprehensive all-in-one systems like Fastlane can help make your business run smoothly and ensure it is always efficient no matter the growth stage.
FastLane Group provides proper financial management in real time, with everything in one spot. Contact us today to start a conversation!
Frequently Answered Questions
SAP, also referred to as Statutory Accounting Principles, are applicable in cloud-based accounting applications and software. SAP represents the established guidelines for accounting practices and financial statements, serving as one of the prevalent languages in the accounting domain.
Indeed, cloud accounting and SAP are distinct concepts, yet they can complement each other. SAP (Statutory Accounting Principles) accounting software has the flexibility to operate on the cloud, as well as on a private network or system.
Potential risks associated with cloud accounting may encompass privacy breaches, security vulnerabilities, and technical challenges leading to system downtime. While risks with cloud software are relatively limited, they still exist. Nevertheless, many argue that the advantages outweigh the risks, and cloud accounting simplifies processes for all stakeholders involved.
Indeed, cloud accounting is widely regarded as the future. Cloud accounting solutions, such as FreshBooks, have the capability to propel your financial records and traditional accounting practices into the future, equipping your business with the necessary tools to thrive and remain competitive.
Any data typically storable on a computer finds its place within a cloud accounting application. Businesses can securely store a wide range of items, spanning from proposals and quotes to accounts payable and receivable files. Additionally, documents, spreadsheets, audio, and video files can be stored in various forms of cloud storage, ensuring accessibility whenever needed.
The expenses of cloud accounting will be based on the kind of cloud accounting system that you will select for your business. Price varies if you want to store more data and get an unlimited number of downloads. Online accounting software like Xero usually have a free trial period for you to test the software and what package you can afford. You will then sign up for that package to make your business accounting processes simpler. Contact now!!