Advancing Your Business: 4 Reasons to Choose Cloud-based Accounting

If you have been mulling over the idea of switching to a cloud-based accounting system, you’re in good company. The advent of cloud technology has revolutionized various business operations, among them being the management of the financial side of businesses, making it simpler and more streamlined.

Cloud-based accounting systems transition your accounting from being locally stored on your computer’s hard drive to an online environment. Cloud-oriented platforms like QuickBooks and Xero furnish key functionalities that are not only cost-effective but also time-saving, thus enabling you to dedicate your energy and time to other significant business operations.

Here are four compelling reasons why you should migrate to a cloud-based accounting system.

1. Streamlined invoicing

For businesses where invoicing forms a critical part, online accounting systems such as QuickBooks or Xero make the process seamless. You can directly dispatch invoices to your clients via your software, and also monitor the time lapsed since the invoice was sent.

The payment process is simplified for clients through a link appended to the invoice, thereby augmenting the chances of them paying promptly. Payments made through the system automatically mark the corresponding invoice as paid. Moreover, the system will notify you in case of overdue payments.

Furthermore, your software can be configured to auto-generate reminders for overdue payments. Tax computation is also automated and you can set up recurring invoices and retainers to automate your invoicing process even more.

2. Paperless accounting

Adopting a cloud-based accounting system allows you to transition to paperless accounting. There’s no need to concern yourself about storage of paperwork and files from yesteryears since everything is securely preserved in the cloud. You can retrieve any document or record, even from a couple of years ago, with a few clicks on your computer.

Sharing your financial records with your accountant, bookkeeper, or other financial collaborators is hassle-free. You can email them the requisite information or grant them access to your software instead of mailing physical copies of your financial documents and statements.

3. Anywhere accessibility

A cloud-based accounting system like QuickBooks or Xero allows you to access your financial data from any location, using any device. Whether you’re working from home or on the move, you can log into your software from your smartphone to send invoices, check reports, or manage expenses.

4. Precise reporting

Reporting forms a crucial part of running a business. Precise reports enable better financial management and profitability analysis, which is critical for making informed business decisions.

Cloud-based accounting solutions provide precise reports at your fingertips. With systems like QuickBooks or Xero, you can conveniently access profitability reports, income and expense reports, and year-end reports.

This information is readily available, eliminating the need to spend hours calculating every single invoice to generate your figures. Simply by maintaining your records on a cloud-based system, you can effortlessly generate precise reports.

Final words

If you’re currently storing your accounting data on your computer’s hard drive, it’s worth exploring cloud-based accounting to see if it can bring value to your operations. Given the ease of invoicing, accurate record-keeping, and the convenience of a paperless and easily accessible system, you might find that a cloud-based accounting software is the perfect solution for your needs.

Reach out to our team at Kedden to discuss your options for cloud-based accounting today!