5 Reasons To Use Cloud Accounting

OK, everyone is talking about Cloud Accounting.

If you are in business and haven’t heard of Xero or MYOB Account Right Live or bank feeds by now you have been a little out of touch.

In my experience Xero has been the major contributor to cloud accounting, benefiting 1,000’s of businesses across the globe. SMEs are the winner and an astute business owner will take advantage of the many benefits of this progress.

So what is Cloud Accounting?

Well to put it simply it means accounting software users can access their software remotely through the internet. Accounting software, both the programs and the data files, are hosted on remote servers. No longer do you need to install or maintain a program on your computer or be sitting behind your desk at your computer to see real time data.

A business owner benefits greatly from this new wave of accounting software.

1. You no longer need to purchase accounting software upfront. Modern accounting software uses a subscription model. Not a major benefit in my eyes but for start-up businesses it can be helpful for cashflow.

2. Unlimited users on the data file simultaneously. That’s right no more fighting for a login or waiting turns. And no more sending the data file to the accountant, to then have to duplicate the differences into the live file. It can all be done live while you continue to do your daily transactions and reconciliations.

3. The biggest kicker for me is the bank feeds. This means the transactions that have gone in and out of your bank account will automatically appear in your accounting software. No longer do you need to enter each piece of paper or transaction from a bank statement, the use of cloud accounting enables your system to prefill the information – daily.

4 .Daily bank feeds result in more accurate and up to date information so you can see your financials in real-time. You don’t have to wait for your bookkeeper to turn up each month to know what the figures are.

5. Use of rules and cash coding within your accounting software allows for faster data-processing. This may reduce your bookkeeping costs or even better allow your bookkeeper to give business advice in real-time or concentrate on other services you may not have wanted to incur extra costs for, such as debt collection.

Cloud accounting has made bookkeeping more streamlined and automated, faster and more user-friendly. Gotta love progress!!!

If you want to take advantage of these benefits contact Katrina from Accounting Software Specialists on 0414 823 862