Why is it time to move to Cloud based accounting?

Cloud based accounting software is very similar to the traditional desktop versions of software that we have been using, only that instead of the software being hosted on a remote server, data is now stored on cloud. Then what is the reason for the recent phenomenon of moving your accounting to cloud?  According to Small Business Success in the Cloud, a report from Emergent Research and Intuit Inc, “it is predicted that nearly 80% of U.S. small businesses will be fully adapted to cloud computing by 2020.” Further, these cloud based accounting software come hand-in hand with cloud based accounting apps. These apps are designed to not just make accounting real time, but also introduce automation to many manual bookkeeping and accounting processes. Let us now look at some of the benefits cloud computing provides over traditional accounting software:

1. Cloud accounting empowers you to have access to your financial data on the go. It allows you to manage your company’s financial transactions from any smart device. Hence, when you step out of your office for a meeting and urgently need to access some financial data, it’s just a few clicks away, as long as you have access to the internet.
2. Helps keep data real time: Cloud based accounting software connect with your bank accounts, and can help you track incoming payments and expenses 24/7. Further, there are apps that allow you to click pictures of receipts with your smartphone, and your document filing is done! They get stored in a repository on the cloud.
3. Save time and money with automation: These software allow you to create data processes and rules, which help you eliminate many manual bookkeeping and accounting processes, thus saving cost and time. For example, if you know that payments to Pacific Power Utilities is always to be coded under the said vendor and categorized as ‘Utilities’, you can simply set a rule and as soon as the payment is made from the bank, bank will sync with your software and automatically code the transaction.
4. Helps promote a paperless environment: With integration of cloud based software with apps, storing paper format of receipts or statements can be reduced substantially since it allows you to store documents digitally. This helps you keep a clutter free office, helps save the environment and reduces costs substantially.

Is my data secure?

Cloud accounting solutions provide an equally secure environment of storing data as that of a traditional accounting software. For example, in both the cases, password protection of the office computer or that for logging in to the cloud software are important for data security.

If one considers the matter of backups, then cloud providers generally have backup servers in two or more locations. Hence, even if one network goes down, you still have access to your data. Information kept just on-premises could be destroyed or damaged in a natural disaster, and may never be recovered.

Let us finally look at some of the accounting software and apps that are revolutionizing accounting processes today:

1. Accounting software: Software like Quickbooks, Xero and Wave accounting help you share access to financial information with persons you want. You can add invoices, accept payments, categorize expenses, send payment reminders, do bank reconciliations, view an array of reports from anywhere in the world with internet access. All your data is on the cloud, and you do need to get back to your office to work on your accounts.
2. Expense tracking apps: These apps allow you to click and store your receipts in an orderly fashion, digitally. Many of these apps are integrated with the accounting software, and are powered by OCR, which help them read and suggest how the receipt should get coded. A few clicks on your smartphone, and the receipt not just gets stored but also coded in the accounting software, all at once. Examples of such software include Hubdoc, Auto Entry, Entryless and Expensify.
3. Bill payment apps: Bill payment apps like Bill.com integrate with expense tracking apps and accounting software, so that once you click a bill with an expense tracking app and mention it as a bill, you just need to re check the amount and due date- the payment is automatically made by Bill.com and gets coded accordingly in the accounting software.
4. Workflow management apps: Workflow management apps like Harvest and Asana help you create timesheets, manage work among teams and also track work progress. The detailed task notes help keep a log of the work done on each project, thereby allowing you to undertake reviews as and when needed.

These are just a few of the many available. The idea is to find the one that suits your business the best. We, at Fruxient Analytics, believe in empowering business owners to succeed. We can show you which accounting software and app shall suit your needs, how to use them, and be your support system so that you can take the reins of your company’s finances