Do you know how bookkeeping was carried out before advancements were made and cloud accounting was introduced? Prior to this major shift in accounting, transactions and other important records were usually stored on desktops.
Maintaining a day-to-day record was considered a hassle by all. From startup businesses to major firms, every company had a specified team to record transactions, pay bills, and invoice clients. These tasks were often pushed to the weekends, if not the end of the month, leaving piles of documents to sort through. This became a worrisome issue because businesses couldn’t afford to waste several hours as they had clients to serve.
The lack of organization and mismanagement would become apparent when tax season arrived, and bills were overdue. Tariffs and tolls slowly became the bane of their life. Unrecognizable expenses and cluttered accounts led to miscalculations. Resorting tax planning was also worthless as inaccurate financial statements couldn’t produce accurate results.
However, cloud accounting introduced an efficient and planned set of tools to minimize the workload and create a more organized manner for bookkeeping. Let’s go over some ways in which cloud accounting software can lessen the burden carried by most accountants.
Work On The Go
As the owner of an accounting firm, you often find yourself working remotely. Whether you’re on a business trip overseas or working from home, cloud accounting is the way to go.
Contrary to this, it is nearly impossible to work efficiently while away from your desk with desktop software. From invoicing clients to unattainable financial documents, desktop programs intensify the burden in many ways. Instead, with cloud accounting software, one is able to access their due information and carry out accurate transactions no matter the place or time.
Easily Track Records
Cloud accounting software allows an easy way of bookkeeping compared to previously used manual methods. The majority of the interfaces establish connections with your credit card and bank accounts, creating a categorized way of tracking your records on a day-to-day basis. No more cramping up slips in your drawers. Instead, take a picture of the given receipt and store them via email. These snapshots can easily be attached to your expenses in just a few seconds.
Cloud accounting creates a more collaborative, friendly environment between the client and the accountant. As opposed to this, desktop programs generate back and forth communication between both parties, which can be annoying and time-consuming.
Let’s suppose you used desktop software for bookkeeping. You would start by calling your outsourced accountant to determine the problem at hand. After that, you would be asked to send over financial documents, which must be encrypted. These papers would have to be emailed or printed out and sent through email. Upon receiving your records, the accountant would review them and raise questions related to the expenses of different items. Only then would they be able to propose different financial options.
This back-and-forth communication creates inconvenience making it impossible to present deliverables timely. Moreover, it may at times hinder the efficiency of work.
Using cloud accounting can not only help reduce the hassle experienced by desktop software but can also create a secure way of managing records. It produces more straightforward ways of accessing financial statements giving you your time back. This results in better decision-making and improves the management of your business.
Make Fast Software Updates
Previously, accountants would have to purchase software by installing them on their local desktops. Later as new revisions were released, they would either have to budget for them or use outdated and unsupported versions of the software.
These updates were extremely costly and uneconomical making it nearly impossible to grant multiple people access to the accounting data as it would mean purchasing additional licenses.
Cloud accounting has brought an improved medium for accountants to stay up to date with the latest software. These software can be accessed through an app or simply using the web browser. This takes care of updates and eliminates the hassle of hiring someone for security and backups.
Regardless of whether you’re just starting up or leading a firm with hundreds of clients, consider shifting to cloud accounting. This way, you will be able to manage your core goals and your clients instead of worrying about fuss created by bookkeeping.