Last updated on July 18th, 2022
The cloud is a platform that makes software and data accessible online from any device and any location. Until you start using cloud accounting software, you could overlook the number of problems that exist with traditional accounting software.
For instance, non-cloud software only works on one computer, only one person has access to it, and the system’s data is never fully up-to-date. You can solve those issues and others by using cloud accounting software.
1. You Can Stay Connected with Your Team
Cloud software allows access to anyone with permission to use the program. That means you can stay connected to your data, your advisors, your investors, your board of directors, and your accountants at all times.
A cloud system allows you and your team to have a full live view of your business’s finances. You can then find the best strategic direction for your company together. Although cloud-based accounting software is easy to use, it’s still advisable to employ professional accountants to take care of your business’s accounts.
By hiring accountants who are CPA licensed, you can ensure you are in the capable hands of accountants who have the highest standard of competence. Accountants have to pass the CPA exam to receive their license.
2. You Have Real-time Access to Your Financial Information
One of the most significant advantages of cloud accounting software is its ability to link to your business’s bank feeds directly. All bank transactions, as well as debtor and supplier invoices, are immediately fed into your software. That means you no longer have to upload bank statements and make manual checks.
You can also monitor sales, cash flow, financial targets, and other data at any time. Having access to live financial information that is always up-to-date means you will save a lot of time. It will also enable you to make quick, quality decisions, which will lead to a more effective business.
3. You Can Generate Customized Reports
Having access to live financial information allows you to produce customized management reports through your cloud accounting software quickly.
The leading cloud systems, like QuickBooks and Sage One, have sharp tools that can generate key-metrics, variance reports, graphs, and other financial snapshots. These features give company directors the edge when it comes to being on top of business finances.
4. Cloud Accounting Software Provides Better Security
If you use traditional accounting software, your laptop stores your data details. That means if your computer is stolen or lost, you could lose your financial data.
Cloud software solves this problem. It uses world-class security measures to make sure your data is safe and inaccessible to anyone who does not have permission to access it. With cloud accounting software, your financial information lives online, as opposed to on your hard drive, which means it is entirely secure.
Auto-allocations Are The Future
Auto-allocations through machine learning and artificial intelligence is one of the most exciting growth areas in cloud accounting software. Auto-allocations recognize your business’s recurring transactions and allocate them automatically into the correct accounts.
That means accountants can focus on giving business advice more than transaction capturing. Also, by using this new high-tech feature, the number of manual allocations you need to do should be less than 20 percent of all your transactions.
Just think how much time and energy that would save. With the increased use of auto-allocations in cloud accounting software, businesspeople all over the world will be able to focus on doing business rather than recording it.
Note: This a guest post from Bryce Welker CPA, he is the founder of Crush the CPA Exam. The author’s views are entirely his own and may not reflect the views of Ace Cloud Hosting.
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