Unlike an on-premise accounting system, a cloud accounting solution is hosted on remote servers enabling you to access it through the internet. Your financial and business data is sent to “the cloud” where it is processed and returned when required. Every function is performed on the cloud and not on the user’s computer system. Cloud accounting enables businesses to get real-time visibility into their internal operations and automate financial processes. Let’s dive into the reasons why you should choose cloud accounting over traditional accounting.
Work from wherever you are. A cloud-based accounting application allows business owners to manage their finances from anywhere using an internet-enabled device. With data syncing across multiple devices, you can continue working a task using your computer, smartphone or tablet. Cloud accounting helps you keep track of your business’ operations, submit expenses, and update records from wherever you are.
Collaboration with multi-user access. Businesses of medium and large-scale have multiple employees working on managing accounts from various locations to edit and update the records. Cloud accounting makes the collaborative process convenient as an admin user can easily add several users while customizing their roles and responsibilities based on the user’s expertise.
For instance, you can edit permissions to allow the payroll team to access only access and make changes to payroll information, whereas accountants have access to accounting information. Real-time access to information boosts productivity and enhances operational efficiency across multiple departments.
Paperless and hassle-free accounting. Cloud-based software allows you to capture or scan receipts and record your expenses. You can store your invoices and receipts securely in the cloud so that you no longer have to worry about misplacing them or letting them pile up on your desk.
Save time with accounting automation. Most businesses spend a lot of their time on manual invoice creation, keeping them away from making time for critical business operations. Automated accounting software helps businesses to automate their manual, repetitive accounting processes, including billing, invoicing, and transaction reconciliation – all from a single platform.
Data protection with secured access. Most accounting software powered by cloud technology employs bank-level data security to protect your financial data round-the-clock and curtail unauthorized access. Additionally, with automated back-ups and restoration, you never have to worry about losing your data, even when there are any potential security threats.
Real-time business insights. A traditional desktop-based accounting system does not allow you to share your financial information with your accountant, forcing you to either print off all the documents or export and send it via email. Fortunately, a cloud accounting solution gives you a real-time overview of your accounts and gain deeper insights about your current financial position. By granting access to your accountant, you can save time spent on downloading and sending details to them as they can stead easily access your business account online.
Reduction in operational costs. Usually, businesses pay a hefty amount of money for tailor-made accounting software, which is then needed to install on several computers. In contrast, cloud accounting software providers offer a monthly or yearly subscription, making it cheaper for businesses. The best part is that any feature updates or security fixes made in the software do not cost you anything.
At HostBooks, we help you take control of your business finances by putting the perfect blend of accounting expertise and latest technologies into work. Our automated accounting solution enables businesses to monitor critical business performance metrics regularly while also making time to grow their clientele and overall operations.