Cloud Accounting – A New Player in the Economic Landscape

Business technology concept.
Cloud accounting technology is a new player in the economic landscape.

Cloud accounting is similar to traditional accounting and bookkeeping procedures done on an accounting software. Cloud accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent to the server into a ‘cloud’ where it is processed and sent back to the user. All application functions are done off-site, into the cloud, not on the desktop. The accounting functions are done online and not on the desktop software. The internet or another network are used for the process. Users access cloud accounting software through a cloud application service provider. The software has not be installed on a computer. It can be accessed from any place in the world, provided the cloud applications service provider is present.

Features of an accounting software must include:

  • Inventory management
  • Sales tracking
  • Contacts management and contact history tracking
  • Account to accept credit card payments
  • Generating Invoices
  • Financial statements, cash flow statements and balance sheet
  • Budget planning
  • Payrolls
  • Taxation matters

BENEFITS OF CLOUD ACCOUNTING FOR SMALL BUSINESS

Cloud accounting technology is a new player in the economic landscape. Why?  We’ve listed the reasons below.

1. Access to accounting and bookkeeping data anywhere and anytime in the world. You can spend time on other activities related to business operations or spend your quality time with family. You can go online to access cloud accounting software while sitting at home and keep yourself updated with the accounting and bookkeeping functions in your business. You always have an up to date view of the financial status of the business to make the right decisions at the right time.

2. Go paperless in accounting and bookkeeping. This step is Eco-friendly, too. Paperwork takes a lot of time for accountants and business owners. Small business owners need time to interpret accounting information. Accounting software makes it easy to interpret accounting information.

3. Cloud accounting software has multi-user access.

4. Cloud accounting software is automatically updated.

5. Cloud accounting reduces upfront business costs. You do not face regular maintenance and fees for upgrading the system.

 

A Few Cloud Accounting Software and their benefits

  1. FreshBooks

You can access FreshBooks from a desktop computer and mobile phones. It has many features used to simplify accounting processes. It makes it easy to track expenses, make online payments, generate customized invoices, generate reminders of late payments, purchase history with time-tracking, client records, and management of different projects with different rates.

30 days free subscription of FreshBooks is available for a new user.  After that, it costs $19.95 a month.

  1. QuickBooks Online

QuickBooks is the major bookkeeping and cloud accounting tool for small businesses and is used to handle accounting operations. QuickBooks is developed and marketed by Intuit. QuickBooks is used to:

  • Generate invoices with the logo of your company and with all details required by the customers.
  • Process payrolls according to HR policies
  • Manage all business transactions, including bills from suppliers and vendors
  • Manage Inventory
  • Track expenses
  1. Kashoo:
  • Creating professional invoices
  • Categorization of income and costs
  • Connectivity with online credit cards and bank accounts
  • Online Sharing of data with accountant
  • Reconciliation of accounts due to double entry accounting process

20 transactions per month are free.

 4. Outright:

Outright is an online cloud accounting system for small businesses and is used for tracking expenses, profit, sales, and customers. Bank accounts and other services such as PayPal, eBay, FreshBooks and web stores can be connected to Outright and data can be easily exported from one app to another.

 5.   Xero:

  • Dashboard with bank balances, expenses, and invoices
  • Customized reports required by the small business
  • Tracking cash flow in real time
  • Graphical presentation of data
  • Data can be shared and accessible to accountant and others
  • Generating customized reports and reminders to customers
  • Scheduling of Payments and returns

Apple, Blackberry, and Android applications are available. Many add-ons like CRM, invoicing, inventory management packages are also available on demand.

 

CONCLUSION

Cloud based accounting technology is changing the landscape by providing its customers the services which were not available a few years ago. One can access their company’s data from anywhere in the world by logging into the account. Small business owners must avail this technology as the costs are affordable and benefits are more abundant than ever.

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