Why you should consider cloud bookkeeping over traditional bookkeeping – Traditional bookkeeping went from having just the pen and paper to the computerised excel spreadsheet and then the desktop based accounting software entry. Accounting has changed and moved up the productivity range by quite a bit since the good old days. Gone are the days when you have to spend days just to do up the bookkeeping work for a business that is running well.
You can complete most bookkeeping and accounting work within the day and if you are proficient, in an even shorter time than that. Over the years there are new innovations that continuously help this industry to improve and at the same time help to allow the accounting industry to save on cost by being more productive. We will explore this changes and also look into the advent of cloud accounting and cloud bookkeeping software that are able to improve the productivity of accountants even more than what it already is.
So why you should consider cloud bookkeeping over traditional bookkeeping:
Reason 1: Cloud Accounting allows your customer to partake in the bookkeeping process
Most business owners have accounting software or they will use excel or words to issue their invoices. This is something that can be done through cloud accounting software like XERO accounting. Cloud accounting software allows your customer to look into doing up their invoicing from the software that you are also using to do your bookkeeping and accounting work.
You customer will also be able to save time and increase their productivity when they need to issue new invoices through this system. This is something that most business owners will really love. When you are running around trying to close deals, the most convenient way is to be able to issue quotations and invoices on the move.
The fact that you are able to issue quotes from your mobile devices is one of the main advantages why you should consider using cloud accounting software. You are able to email the quote straight to your customer while your are chatting with them. And when they confirm the quote, immediately use your mobile application to issue the invoices, this saves you time and effort and your customers will be impressed with your efficiency.
Reason 2: Cloud Accounting allows access into accounting data wherever you are
In the past, when you need to find out how much you made for that month or how much you spent for that month, you will need to wait until the end of the month after the accounts are done and then you will need to wait for the reports to be generated for you and then sent to you. This takes up too much time because for a business owner, the most important thing is when they have information that is able to help you make decisions to help you improve your business.
Decisions that are made early in the business can help you to grow faster than your competitors and win in the long run.
You will also be able to access your bank data early on so that you can check on how much there is in your bank through this application as well.
This not only helps with bank reconciliation but also how your money is moving in and out of your business.
You can also view your information across platforms such as your phone, your laptop, your desktop and your tablets.
Reason 3: Cloud Accounting allows you to operate even when there are updates on the software
The problem with my desktop based software is that there are down times that you have to factor in. You have to download patches as they come which takes a lot of time and when you are installing the patches, you are not able to work on the accounting of the company.
Businesses do not have such luxury of time and if the team is a 4 man team, 4 man time is wasted while the system is updated.
This is something that most business will have to face if they are using software that require updating on a regular basis. If there are security breaches, its even more important that you get them updated immediately.
Down time is unavoidable in this case and this is something that many have to consider with the traditional accounting methods.
Reason 4: Cloud Accounting allows you to be at the forefront of technological changes
As the updates are updated in the dead of night when most users are not using it, you do not need to worry about down time. You will also be able to use new features as they are updated to your system. The good thing about cloud based system is that you get changes as they are being improved for your use.
Cloud Accounting allows you to try out new functions that the company wishes for your to try. For example, Xero has recently added the function of receipt scanning for users who wish to try them out. This allows you to save time and also effort in getting your receipt data into the system. At the same time you are able to compute and finish up the bookkeeping work at a faster pace than usual.
You also get pushed new data which may become useful for you as your business grows. You might not find a use for it right now but eventually you might. So why not have that option open for you.
With new technology comes extra advantage over your competitors, with that you will be able to ensure you can win easier than the rest of them.
Reason 5: Cloud Accounting is cheaper to start off with
Accounting Software that are desktop based can cost a lot to start off with. With most system costing in the thousands, you might not have that kind of funds to use them in the first place.
Most businesses start off with very little financial support and this is something that is limited. You will be better off spending money on other more useful products and services than on an accounting software.
Cloud Accounting software has a benefit where it is subscription basis and they cost you just $30 usd a month to run and operate on. If you require less features it can even cost you even lesser.
You will also get to try out new functions along the way. This leaves you with more funds for other uses and you will not have to get a headache from trying to find out how to find funds to just buy an accounting software.
Starting a business is not easy, there are many issues that you have to work on and iron out before you are able to get into profitability. There are also decisions that are tough but necessary and if it involved cutting cost you will have to do it.
We are glad you spent time to read out article on “Why you should consider cloud bookkeeping over traditional bookkeeping”.
Decisions are made in the best way possible when you have information to back those decisions.
K Cloud Accounting is focused in assisting Startups and SMEs in this journey through our dedicated Xero Cloud Accounting services for Singapore.
K Cloud Accounting is also able to assist in Taxation, Incorporation, Corporate Secretarial and Payroll Services.
Visit our site now: http://kca.sg/