One of the most important tasks for any business is keeping its finances in check. Those who neglect their company accounts risk suffering financial mix-ups later down the line. Therefore it is important that proper record keeping is maintained to effectively run your business.
The importance of smart, strategic, focused and accurate accounting cannot be overstated. Companies are increasingly embracing cloud accounting as the modern solution to keeping the books balanced. Here, we explore some of the key reasons why it’s so beneficial to jump on the bandwagon.
How is cloud accounting different to traditional accounting software?
Distinguishing between traditional and cloud accounting software is easy. It all comes down to where the software is being hosted.
With traditional accounting, the software is installed on your PC and is accessible on the premises. Cloud accounting, on the other hand, is hosted remotely – with all data held within “the cloud”.
Users can access cloud accounting features and run functions from anywhere in the world, provided they have an internet connection. There’s also no need to install specific programmes on individual machines. All cloud accounting software is hosted by a cloud service provider.
The lack of software (and hardware) on-site offers users a considerable number of benefits. Cloud accounting is also far superior in terms of its overall capabilities, offering business owners increased control and visibility over their accounts.
Cloud accounting isn’t just an in-vogue buzzword in today’s financial sector. It’s a very real, very advantageous solution for getting your corporate finances in order, to facilitate better results.
The benefits of cloud accounting
There are numerous reasons to bid farewell to old accounting techniques in favour of cloud-based software – including ease, accessibility, scalability, adaptability, savings and eco-friendliness.
Accounting is complicated enough as it is. For many, it’s one of the most laborious parts of running a business – so it’s worth embracing any type of solution that can make the whole process considerably easier.
With cloud accounting, many of the main manual accounting and bookkeeping operations can be completely automated. That means blank fields can be filled out for you, and complex calculations are simplified.
Overall, cloud accounting makes recording of data a much more efficient procedure, freeing up time to spend on other business matters.
Cloud accounting also adds a much-welcome sense of flexibility into the financial recording process, enabling you to update data in real-time and from anywhere in the world. What’s more, the accounts are accessible via any device with an internet connection.
The ability to access data easily and quickly regardless of your location means you can maintain a tight grip on your accounts and records – ensuring data is amended in the right way at the right time for maximum accuracy.
Open lines of communication also cement stronger relationships between accountants or bookkeepers and their clients.
There’s no need to worry about compatibility when it comes to cloud accounting software. The vast majority of solutions are designed to integrate with other cloud products, enabling maximum performance.
Integration capabilities increase efficiency across the board, preventing unnecessary complications arising whenever you pair your cloud accounting software with other tech.
Traditional accounting systems cost considerably more than cloud-based equivalents in the long term, despite the fact they’re not as technologically advanced.
The real financial kicker for older systems is that hardware needs to be updated, maintenance needs to be carried out, and system upgrades need to be conducted – and the costs can add up.
With cloud accounting, however, there’s minimal hardware involved, all the maintenance is done automatically, and the system upgrades are installed on a regular basis without the user needing to be prompted. What’s more, none of the above costs anything. It’s all included as part of the cloud accounting package.
Going green is more important than ever in the modern climate, and cloud accounting offers you the means to make your business more eco-friendly through the facilitation of a paperless office.
With everything stored safely and securely online in the cloud, users can simply access the necessary documents in digital format on any screen without needing to print them out.
As well as being better for the environment, this also boosts your available office space, reducing clutter and helping to keep things organised.
What is the best cloud accounting solution?
It’s crucial to have a high-quality cloud software provider in order to get the most out of your modern accounting system. That’s why we partner with FreeAgent – a software that’s trusted and utilised by more than 60,000 freelancers, contractors and small business owners.
FreeAgent is an essential ingredient in the recipe for business success, making day-to-day accounting and bookkeeping tasks easier, quicker and simpler. Whatever your level of business accounts knowledge, FreeAgent breaks things down in an understandable format and does all the hard work for you.
Join Gorilla Accounting today for full access to FreeAgent’s fantastic cloud accounting software. If you have any questions, give us a call on 0330 041 6088 or fill in our online contact form.