Key Benefits of a Cloud Accounting System

small business accounting software

The following is a sponsored post for Xero.

For entrepreneurs, one constant struggle is how to manage the financial aspect of their business. Your business is growing. Anything that helps you simplify your business helps you succeed in business. The only thing that is better than simplifying your business is to do so without having to invest thousands of dollars to get there.

The great thing about cloud accounting software is that it helps you run your business more efficiently at a lower cost.

Cloud accounting systems such as Xero are among the fastest growing programs, taking business accounting to the next level. The main improvement of a cloud accounting system is that your data and the accounting software is based in the cloud. You no longer have to download, install, and maintain an accounting software on your local computer.

In the following article, we will provide seven ways that your business can benefit from using cloud accounting systems. 

Access Your Data Remotely

One of the most appealing features of cloud accounting systems is that you can access all of the data you need remotely. This meaning that you can access your accounting information in your office via your office desktop. Then when you go on vacation with your family you will still be able to access all of this information on your laptop. It enables you to have the flexibility to access your information anywhere where there is an internet connection.

Multiple Currencies

When it comes to international business there is nothing more frustrating than having to deal with money internationally. You are constantly thinking about the exchange rate. On top of that, you must take into account how much money you are losing from international transfers and what taxes you are incurring as well.

The great thing about cloud accounting systems is that a lot of the foreign currency work is already done for you. Currencies will automatically be updated into your default currency taking into consideration current exchange rates.

For example, when you are charging a client from China $400 USD, it makes sure that the payment you are receiving from that client actually equates to the amount you are charging. You will not lose any money if exchange rates change for that day.

Accept Payments

Through cloud accounting systems you are able to accept and make payments directly from the system. You will be able to develop invoices for your clients that enables them to pay directly via their debit or credit card.  Also for clients of yours that do not have debit or credit cards you can create a PayPal option in order to receive a variety of different mediums for payment.

User-Friendly Mobile Service

On top of having the ability to access your information remotely, cloud accounting systems have mobile services. Through mobile apps, you will have access to your accounting information at any time. This enables you to develop content such as invoices and see different customer contact information while you are on the move.

In addition, you are able to view your bank information to keep up with your general expenses no matter where you are.

Having the ability to check your bank information at any time helps give you more general use, flexibility, and works as an additional tool in the workplace.

Performance Dashboard

With cloud accounting systems you will be given the ability to view general reports on the financial success of your company. The program will generate automatic reports to view your profits or financial gains. It eliminates the necessity of manually calculating information that you would have had to develop yourself in the past.

Secure Network

Many of us have been worried about how to secure information is in the cloud. People have often posed questions such as what if cloud databases get hacked and I lose contact information from my best clients to competitors, or even worse, some of my bank information gets stolen.

It is interesting to know that cloud accounting services are actually safer and better protected than software located on your own personal computers. First things first, your laptop could always get stolen. If all of your financial data is on that laptop it will be lost. Also, the thief will be able to eventually access that information.

In the case of having all your information in the cloud, you can never actually lose the information. On whatever computer you are using you will be able to access it. Also for the computers that you do use, you will not actually be downloading any financial information onto these computers; the information will be accessed from the cloud itself.

When you want to access your own personal information you will access it through an encrypted page that is password protected. As long as you make sure to never share this password with anyone your information will be safe.

You may ask what happens if the cloud server goes down, how will I then access my information? Cloud servers are always backed-up with backup servers, they have multiple backups in order to eliminate any chance of you not having access to your information.

Low Cost

At the end of the day, an accounting system is supposed to help consolidate financial information, not create a financial problem because of its cost. With cloud accounting services the cost of using the software is substantially less than that of desktop accounting programs.

Cloud accounting software saves your business money several ways:

  1. You save by not having to install an accounting software locally on one of your computers.
  2. You also save because you don’t have to pay someone to install the software for you.
  3. You are saving because you don’t have to hire someone to manage or troubleshoot your accounting system for you.
  4. Because the data is backed up for you there is no need to pay for additional backups.
  5. You also save by not having to buy software updates each year. 

photo credit: danielfoster437 Business Man via photopin (license)

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George Meszaros is the editor and co-founder of Success Harbor where entrepreneurs learn about building successful companies. Success Harbor is dedicated to document the entrepreneurial journey through interviews, original research, and unique content. George Meszaros is also co-founder of Webene, a web design and digital marketing agency.

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2018-02-27T17:34:49+00:00January 12th, 2017|Articles|0 Comments