You are a small business owner and, as such, you surely do not want to add more tasks to your daily routine. Between managing the day-to-day business, managing employees, decision-making, and relationship-building with customers, you are pulled in every direction. That is why we need to reduce the time spent on routine financial activities such as accounting and bookkeeping and focus on the more strategic aspects that will make a difference in financial performance.
As more sophisticated online tools for accounting and bookkeeping become popular, more and more people can outsource their financial data entry and reporting.
Discover five key benefits of leveraging a cloud-based system:
1. Save Time and Money
Unlike the traditional methods where one has to employ an accountant or bookkeeper, online services have annual, monthly or per-service charges that are based on the company's size. Top platforms handle recurrent financial business processes such as managing income and expenditure, preparing invoices, checking accounts, and preparing balance sheets and other reports. These tools link directly to your bank accounts and import the latest transactions so you do not need to enter data manually. The result? You and your staff spare dozens of hours that would otherwise be spent on mundane bookkeeping tasks. Moreover, which is even better, you employ a fraction of the cost compared to having a full-time financial expert.
2. The other benefit of using this media is that it is accessible all times, although the reporting is usually in real-time.
Since your data does not reside in an on-premises server, you can access your books anytime, anywhere using a web browser or a dedicated mobile application. This lets not only you but also other authorized workers or partners, look at the reports and make transactions. Bank feeds run in the background all day, allowing you to enter accounting in real-time as opposed to waiting until the end of the month to evaluate performance or identify problems. Using interactive tools such as dashboards and charts, you have openness in the facets that you deem crucial.
3. Scalability That Grows With The Business
Unlike getting a single application that would need additional licenses when your business grows, there is the monthly software-as-a-service (SaaS) subscription. Consumption-based pricing means that you can cover costs by charging customers based on their consumption, access users, features and data storage accordingly for growth. Whereby small start ups may use simple modules, large corporations may incorporate complex functionality for payroll, inventory control, budgeting and planning. Better cloud-based accounting tools are also well integrated with other systems in the current MarTech tech stack through APIs to form a hub that adapts to changing requirements.
4. Enhanced Security Protections
Unlike keeping sensitive financial information on local MS Excel spreadsheets or files which can be easily lost, stolen, and corrupted due to human errors, good online accounting software has robust security measures such as SSL encryption, user authentication, user roles and permissions, and automated backups. By keeping and protecting sensitive business information in the cloud, you are protecting from internal or external threats, while at the same time allowing stakeholders to cooperate. Activity logs also help maintain transparency as to who looked at what and when.
5. Compliance With Accounting Standards
From GAAP principles to tax codes, regulations put into place erecting accounting hurdles that business owners without specialized training find difficult to overcome. Online accounting services make sure to be in touch with the different reporting changes so that you are not on the wrong side of the law. Billing, banking, payroll and tax modules, for example, minimize errors and omissions arising from manual re-entry of figures across interconnected systems through the automation of data flows between integrated modules. As a further measure of security, you can provide the external accountant with the ability to examine books and file returns on your behalf.
The world is now a global village, and business is more and more digital, making small firms have big enterprise qualities in accounting and bookkeeping within their means. Optimizing back-office financial processes doesn’t only reduce costs and headcount, it also gives leaders visibility to inform better decisions about the future. When you are done analyzing the pain areas in their workflow, consider both functional needs and cost constraints before choosing a platform that will be consistent with their vision for the future. Implementing a solution accordingly, one will restore the time lost and obtain constant assurance that finances are handled properly to focus on profitably expanding the business once more.
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