Get Access to Real-Time Data
Cloud-based accounting software seamlessly integrates with your bank accounts allowing you to track sales, expenses, and inventory. If you are updating your invoices and all the accounting information regularly, you certainly get real-time data at your disposal.
Lending Mobility
With cloud-based accounting software, you are no longer bound to your office desk for accessing financial information. Computing accounting allows you to manage your books of accounts wherever you are; that is, in the office, at home, and through multiple devices like smartphones, tablets, laptops, etc.
Easy Collaboration
If you find it challenging to compile your accounting reports on your own, you can give access to your accounting information to your accountant. Cloud-based accounting software allows for multiple user access. Thus, with just a simple login, your accountant can work on the accounting reports and generate financial statements even if he is located remotely.
Furthermore, cloud-based accounting also gives you control over giving access to users. For example, you can give access to limited reports to few users just in case you do not want them to have access to your complete accounting information.
Increased Accuracy
Since your bank accounts are linked with your cloud-based accounting software, there is no need for you to manually enter the data. Furthermore, with computing accounting, you do not have to undertake various calculations or be careful of various accounting rules or formulas as it does it automatically for you.
Third-Party Integrations Make Accounting Easy
Cloud-based accounting software comes with third-party integrations like payroll, inventory, expenses management, etc. This gives you the flexibility to work with apps you are comfortable working with.
Furthermore, there is no need for you to switch between different apps to manage various aspects of your business as you can manage the same information all in one place.
Get Time on Your Side with Automation
Cloud-based accounting software helps you automate various tasks in the accounting process. For instance, you can upload the vendor information into the accounting software and create an automatic workflow that pays the vendor automatically when the due date arises for such a payment.
Likewise, you can set payment reminders and recurring invoices that automatically send invoices to customers who invoice you for the same products or services on a regular basis.
Regular Software Updates
Cloud-based accounting software releases regular software updates for security as well as the latest accounting features. Such updates make your financial data safer and give you the advantage of the new-age functionality. This saves you time and helps you take your small business to the next level.
Automatic Backups
With cloud-based accounting software, you do not need to be worried about not saving the business snapshot reports or copies of your invoices. This is because such an accounting software provides an automatic backup facility that takes the backup of your accounting data after every few minutes.
Encryption
Another feature that makes cloud-based accounting software outstanding is the encryption of data. In computing accounting, you upload the financial data on the cloud where it is stored. Since you are transferring the financial data to the cloud, you would certainly want such transmission to be encrypted. Encryption rewrites your accounting information into a code.
Thus, understanding this code is out of the question for hackers or unauthorized entities who try to access your accounting information. There are different types of encryption used by cloud-based accounting service providers.
Secure Sockets Layer (SSL) is the most used encryption method which allows for the safe transferring of data from websites and browsers.
Cloud-based accounting services providers use 128-bit encryption which is the same security measure used by financial institutions and banks worldwide. I highly recommend you use cloud-based accounting software. My firm has been using QuickBooks Online for several years.
JANUARY 18, 2021 BY STILLCPA