In 2019, Cloud Based Accounting Software is a
It’s very common to hear people talking about ‘cloud’ accounting these days, but you might be wondering – is it actually that big a deal?!
I mean really, what’s all the fuss about?! Well, I’m here to tell you that Yes! It’s a big deal!
Having been an accountant for over 20 years, I used to tell sole traders and small business owners that they didn’t need to invest a lot of money, if any, into accounting software.
Often, it seemed more trouble than it was worth, with business owners who did purchase software sometimes unsure about how to use or understand it. Or, their software would quickly became outdated and they were then faced with large accounting bills as a result of an accountant often having to undo then redo many entries.
My, how cloud accounting software has changed all of this!
Here are my top five reasons why every small business should be using cloud based accounting software.
1. 24/7 access and updates – wherever you are
For those who don’t know, ‘cloud based’ accounting software is web based. This means that it can be accessed anywhere, any time, as long as you have an internet connection. This also means that the software is always updated rather than having to purchase new updates.
Big advantage number one!
2. Find the perfect fit for your business
The second advantage is that there are multiple providers who offer a range of choice and pricing options. This means you can find one to suit your business and budget, whether you’re a very small sole trader, right through to mid-sized companies with several employees.
3. Give your accountant real-time access
However, it keeps getting better with benefit number three. Being web based software, the business owner can ‘invite’ their bookkeeper and/or accountant into the software so that they both have real-time, live access to the data.
Gone are the days where a client has to struggle with how to process certain entries – they can now call their accountant, who can log straight onto their software and talk them through the process with ease.
4. Know your numbers at a glance
Another great advantage is the ease of use and the ‘dashboard’ approach – where the client can quickly see key financial data, such as sales, profit and cash at bank.
5. Live stream your bank transactions
I have saved the best for last though with benefit number five being the use of bank feeds and live data! (Being an accountant, these are very exciting terms for me!!).
For anyone who is unsure, bank feeds are where your bank account is linked to the software and transactions are sent through to the software on an ongoing basis, often several times a day.
Bank rules can be created to tell the software to look for certain transactions and to code certain items to specific accounts. For example ‘Account Charges’ can be identified and a rule set up to code this to the bank charges account – every time!
The use of bank rules and live bank data means that small business owners can now be empowered to understand their business profitability and finances more than ever before.
As an accountant, it means an opportunity to work beyond just ‘number crunching’ and to work alongside clients to help them with issues such as cash flow and tax planning.
Is it getting a little cloudy in your business?
If you haven’t yet thought about the ‘cloud’ for your bookkeeping and accounting, then I highly recommend that you do as it’s a great time to get on board.
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Certified Practicing Accountant
Emma Fabbro is a Certified Practicing Accountant and owner of Fusion Accountants, who were established in 2014 with a vision for making high quality professional accounting services affordable .
With more than 20 years experience, Emma loves all things accounting and tax, and loves working with both individuals and small business. She spends her days delving right into your business to fully understand your needs so that you can get on with what you do best!
Accounting, Bookkeeping, Income Tax Returns and Business Advisory Services are Fusion Accountant’s speciality.