Before cloud-based accounting software came along, bookkeepers and business owners had to sit for hours trying to manage their accounts. They needed to manually record every transaction, send invoices to the clients, and pay the vendors. Most of the bookkeeping activities got done at the end of a month or a fiscal year.
However, so much procrastination was bound to have some negative effects. When it was time to pay the taxes, bookkeepers and business owners had to sort through several financial discrepancies. Since the tax estimates could not get calculated until the financial statements were corrected, accountants and business owners could take days trying to sort out all the mistakes.
Fortunately for them, modern cloud-based accounting software can provide several tools that can help in managing the everyday financial activities of a business. They have revolutionized the way the financial aspects of an organization get handled every day so that there aren’t a lot of backlogs and errors when it is time to calculate the taxes. In this article, we are going to discuss how cloud-based accounting software can help the everyday activities of a business. If you are looking for advice on specific accounting software you can check out this great comparison of the top accounting software by Neil Patel.
Keep Track of Your Everyday Business Expenses
Gone are those days when you had to keep track of every expense receipt. Losing a receipt meant there was no way to backtrack a missing expense in your calculations, and you would have to spend hours jogging through your memory to try and remember where you spent that money. That’s why efficient business owners kept a little notebook to write down their expenses.
With the help of cloud-based software, you can record these expenses on the go and do not have to rely on manual methods to keep track of them. Since you can access the software on your phone from anywhere, all you need to do is to take a picture of the receipt and update the records. That way, you won’t have a glove compartment full of receipts or missing expenses at the end of the month.
Manage Your Accounts on the Go
Being a business owner does not mean you must be chained to your desk all the time. Several entrepreneurs have to always be on the road to ensure the progress of the business. In the earlier days, such business owners had to rely on telephonic conversations to gather data about the financial aspects of their business.
But with the help of cloud-based accounting software, you can access the financial data of your business from anywhere and use it during your meetings with prospective stakeholders or clients. You can also send invoices and bills to people while sitting anywhere in the world.
In the earlier days, it would take hours or days for the finance department to create backups and install new software or update the existing one. The new software also needed to get installed on each computer individually. Sometimes, the cost of a new version might not fit in the company’s budget, and the accountants had to keep using the outdated version. For multiple access for several users, the company often had to buy additional licenses, which added to the cost of the software.
However, these days every cloud-based accounting software regularly updates the tools to match the needs of the customers and keep the product competitive. The update process is relatively much easier than the olden days since backups are not essential since the data gets stored in the cloud. The accounting software provider takes care of everything.
Most businesses used several different software for their everyday business activities. Employees had to manually transfer the data from one software to another to maintain the business accounts. However, a cloud-based accounting software seamlessly integrates all your business-related software so that the financial data can get transferred easily. The cloud-based data is also connected to other aspects of the business, such as the point of sales or the maintenance of stocks.
The best cloud-based accounting software providers use state of the art data encryption for their servers to ensure the safety of your financial data. Moreover, any damage or theft of your computers will not mean that your financial data would become vulnerable. You can create encrypted, password-protected reports that can be shared confidentially with your employees, stakeholders, or clients.
So whether you have just started your business or you are using outdated software, it is time to move onto a cloud-based accounting solution for your business. You can enjoy the benefits that we mentioned and much more.