Keeping financial records is often a bug bear of many businesses. Of course, running a business is about making money, so financial systems are integral to your business. So what if I told you that your financial system can not only help you make more money, but improve your cashflow, increase productivity, free up time and ensure that where disaster strikes, you can get back to business quickly?
You might tell me I have my head in the clouds right? Yes, exactly! Cloud based accounting systems can do all of these things and may be just what you need to save your business. It might surprise you that you are probably already using one or more cloud based systems.
Cloud simply means that instead of storing the information in your computer’s hard drive, you access a system and your data over the Internet. Do you have a Gmail, Hotmail or other Google account? These are examples of cloud systems.
Using a cloud based accounting system could totally change the way you do business. So, let’s have a look at the five ways it could save you:
1. Reduce costs
Your cloud based accounting system usually requires a regular subscription fee, which covers not only the financial system, but upgrades, system administration, maintenance, regular support, user licences and more.
Imagine the savings to your IT costs, including the ever-expensive IT support. Other cost savings include staff expenses and training, as processes are more automated and most systems provide online training. Back-up costs are considerably reduced, as all the data is held in the “cloud” and there is no need for physical or off-site storage.
Of course, with cloud based systems, the need for hardware and servers are also greatly reduced, and so costs saved on maintaining equipments will contribute to your bottom line.
2. Keep the cash flowing
Every business needs to have good cash flow to survive. With cloud accounting you can see all your numbers in one place at any time, from anywhere if you have Internet access. You can monitor the financial position of your business easier and quicker, and you can create invoices and record expenses from anywhere at any time.
Projects can be tracked in real time and monitored against budgets, and staff can update information immediately — no more clients exceeding credit limits. The ability of some accounting software to integrate with other business systems, such as point of sale and customer relationship management programs, ensures that all sales records are kept up to date and cash can be collected quicker.
3. Improve productivity
The mobility of your cloud accounting system will increase staff efficiency through easy collaboration within your team, including your bookkeeper and accountant, wherever they are based. Such collaboration will result in up-to-date information that will enable quick and reliable decision making, allowing you to respond quickly to changing business conditions.
4. Free up time
We would all love more time in our business. A cloud accounting system automates many manual processes, such as direct data entry from your bank accounts. It supports expanded delegation within your business, as the systems have good security accesses and internal controls.
The flexibility and reliability will mean less time spent on IT and staff issues. Most importantly, with easy to read information such as dashboard reporting at a push of button, your business will see improved performance, allowing you more time to focus on strategic initiatives.
5. Aid in disaster recovery
Although we don’t like to think about disaster within our business, using cloud systems reduces the probability of losing important information. There is no need to back up accounting files on your own drives and store those copies in secure, separate locations. With cloud accounting, your files are always backed up and secure, and you can access your information from any device with an Internet connection.
Cloud based accounting systems are here to stay, and if you are serious about improving the performance of your business and employees, then this should be the accounting system of choice for your business. Remember, the view is much clearer from up in the clouds!