The BIGGEST advantage of Cloud Accounting
I recently had an accident while on a skiing holiday and ended up breaking my ankle. I’m sure many business owners will agree that sitting at home all day with your leg in a cast is no fun, but it would be even more frustrating if it meant you couldn’t do any work.
Luckily, at Defacto-FD, we’ve had the ability to work remotely for many years, which means I have remote access to my business, my financial information, and my clients. Even though I broke my ankle, there’s a seamless process in place that means it is always business as usual, no matter what happens.
I almost take it for granted these days, as it such an integral part of the way we do business, but I had to remind myself that there are plenty of businesses that are not as fortunate. That’s why – in this blog – I want to discuss how accessibility is the absolute number one benefit of cloud accounting.
The Importance of Accessibility and Visibility
The digital era means we are now engaging with customers and clients at an unprecedented rate. In an age of online websites, 24/7 e-commerce shops, and global connectivity, traditional business models are often no longer applicable. As businesses expand and take up offices in numerous locations, time zones seem to vanish, replaced instead by a 24-hour business day, where customers and clients have total access to services and can make purchases whenever they want.
However, this does pose important challenges, as departments, branches, stakeholders and accountants all need to be able to monitor important metrics so they can make the right decisions. All this interconnectivity requires sophisticated business systems that can handle streams of data and update reports in real-time. Due to regulatory and legal requirements, this is probably most crucial when it comes to accounting and financial analyses. More accessibility means you have visibility over important operations whenever your business requires attention.
The Benefits of Cloud Accounting
While accessibility is probably one of the biggest benefits of cloud accounting, there is a seemingly endless list of other advantages that also make it an appealing way to manage your finances. We’ve listed a few more below:
- Use it from any device with a stable internet connection. Work from home, a café, another branch, or even on the go.
- Mobile accounting means you can keep tabs on your business finances. A quick glance at your dashboard and you know where you stand.
- Integrate your cloud software with any other integrated business solutions, like ERP and CRM systems.
- Monthly subscriptions mean there are no extortionate up-front costs.
- MTD compatible software, along with any other future legislative changes.
- Your system can scale whenever your business needs it to.
- Liaise with your accountant in real-time whenever required.
Expect the Unexpected
Despite the obvious benefits, there are still many businesses who feel that full accessibility and visibility aren’t necessarily important for their situation. In fact, I know plenty of people who counter this by saying that they have no need for access on multiple devices.
“I’m in the office, aren’t I? Why would I also need access to my accounting information from home or another device?”
Well, precisely for the same reason that many businesses now use cloud ERP systems or cloud analytics. You never know what could happen. But the digital era requires businesses to anticipate issues and to consider all the threats and assets to their business.
The fact that you can work remotely or monitor changes as they happen means you’ll be able to make quickfire decisions that have a real impact on your growth. The business landscape has changed, and with it so must your accounting software.
It also means you can get advice based on the latest figures and projections. Liaising with your accountant before you make a crucial decision has never been easier. With joint access to your business information, we’ll always have the latest financial figures, which means you can get strategic advice whenever you need it. If it’s a quick query regarding your real-time day-to-day bookkeeping, we may even be able to answer your question with a quick phone call.
The Disadvantages of Traditional Accounting Software
There’s a lot of issues with more traditional accounting methods, and these are becoming more noticeable as cloud accounting software becomes more refined. These more traditional methods often pose serious problems, especially when attempting to grow or scale your business. Here are 4 of the most common issues that we often hear about:
- Your business and financial data is stored on one computer. You won’t be able to access data remotely or on another device.
- Usually, this means only one person has access to reports and financial information. This prevents key stakeholders, accountants, and other key players can’t access the right information when they need it.
- It’s difficult, time-consuming, and expensive to maintain up-to-date backups. In the event of unexpected system failure, this means all the data could be lost.
- Security can easily be compromised, which leaves your data vulnerable to theft or viruses.
Defacto-FD
Contact us today if you want more information about cloud accounting software or if you’re ready to make the transition. As a Xero certified advisor, we can help you every step of the way.
