What Are the Advantages of Using Cloud-Based Accounting Software?

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What Are the Advantages of Using Cloud-Based Accounting Software?

Cloud technology has changed our lives. We check our emails on the go, post photographs on social media, and access our bank accounts through apps on our mobile phones. Similarly, cloud-based accounting software (also known as web-based or online accounting) has been used since the early 2000s. These days this software offers all the functionality and reliability of desktop or on-premises accounting software, with added benefits. Cloud-based technology is hosted on a remote server, allowing all application functions to be performed off-site. With its increasing popularity, many business owners are asking about the advantages of using cloud-based accounting software?’

Cloud-Based Accounting Software Cuts Down on Administration

The downtime caused by software installation and backups is a thing of the past with cloud-based accounting software because everything is online. Your IT department will no longer have to maintain servers and other infrastructure traditionally used for such software. By cutting out on these administrative duties, your employees are free to carry out more important tasks.

Cloud-Based Accounting Software Offers Automation

Another time-saving benefit of cloud-based accounting software is its ability to automate many banking and accounting tasks by creating automatic workflows.

How cloud accounting reduces manual labour:

  • Import bank and credit card transactions,
  • Schedule reports,
  • Send recurring invoices,
  • Make automatic payments to vendors
  • Flag discrepancies
  • Calculate tax and discounts
  • Post transactions to correct ledger

Cloud-Based Accounting Software is Secure

Data Security is always a concern for businesses regardless of their size. Online accounting software offers a level of security that on-premises storage cannot. With multiple levels of security through access control and advanced encryption, unauthorised access to your data is prevented. In addition, your data is protected from natural disasters, theft of devices, and through automatic backups.

Cloud-Based Accounting Software Improves Accuracy

Automation eliminates many manual accounting steps, such as matching internal transactions to bank records and flagging errors. Without cloud software, organisations typically rely on Excel spreadsheets which unfortunately invites human error because the information is not all stored in the same place. Employees need to be familiar with Excel shortcuts and formulas; there may be double entries and a broad range of other potential errors.

Cloud-Based Accounting Software Offers Real-Time Data

Accessing up-to-date financial data, no matter where you are, is a boon for those who work remotely. With cloud-based software, you can collaborate more efficiently with co-workers to identify financial trends which may affect the business. Moreover, with cloud-based accounting software, you are connected to business bank accounts and can track sales, expenses and inventory.

With so many advantages to cloud-based accounting software, it’s no wonder it has become so popular. In fact, in the 2020 financial year, about 80.4% of businesses that used cloud computing services in Australia used cloud computing for finance or accounting software. If your business hasn’t switched over yet, schedule a demo to see how your business can benefit.

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