Cloud accounting is like traditional accounting; bookkeeping procedures are done on accounting software. Cloud accounting software is hosted on remote servers, like the SaaS (Software as a Service) business model. Data is sent to the server into a ‘cloud’ where it is processed and returned to the user. All application functions are done off-site, not on the desktop, in the cloud.
The accounting functions are done online and not on desktop software. The internet or another network is used for the process. Users access cloud accounting software through a cloud application service provider. The software must be installed on a computer. It can be accessed anywhere globally, provided the cloud applications service provider is present.
Features of 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.
Cloud accounting offers the advantage of accessing accounting and bookkeeping data globally, enabling flexibility in managing business tasks or enjoying quality time with family. Accessible from home, it provides real-time updates on financial status, aiding timely decision-making. Additionally, it promotes an eco-friendly, paperless approach, saving time for accountants and allowing straightforward interpretation of accounting information. With multi-user access and automatic updates, cloud accounting streamlines operations and reduces upfront business costs, eliminating the need for regular maintenance and upgrade fees.
A Few Cloud Accounting Software and Their Benefits
FreshBooks
You can access FreshBooks from a desktop computer and mobile phone. 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 manage different projects with different rates.
A free one-day subscription to FreshBooks is available for a new user. After that, it costs $19.95 a month.
QuickBooks Online
QuickBooks is the primary 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:
The cloud accounting tool QuickBooks Online offers various features, including generating customized invoices with the company’s logo and required details. It facilitates payroll processing in line with HR policies, effective management of business transactions, including supplier and vendor bills, inventory management, and tracking of expenses. This comprehensive functionality contributes to efficient financial management for small businesses using QuickBooks Online.
Kashoo
Kashoo, a cloud accounting solution, offers features such as creating professional invoices, categorizing income and costs, connecting with online credit cards and bank accounts, sharing online data with an accountant, and reconciling accounts through the double-entry accounting process. Additionally, it provides a free allowance of twenty transactions per month, making it a cost-effective choice for users.
Outright
Outright is an online cloud accounting system for small businesses that tracks 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.
Xero
Xero, a cloud-based accounting tool, features a comprehensive dashboard displaying bank balances, expenses, and invoices. It offers customized reports tailored to small businesses, real-time cash flow tracking, graphical data presentation, and data accessibility and sharing with accountants. Xero also allows the generation of customized reports and reminders to customers, along with the scheduling of payments and returns, providing a versatile solution for business financial management.
Apple and Android applications are available. Many add-ons like CRM, invoicing, andinventory management packages are also available on demand.
Conclusion
Cloud-based accounting technology is changing the landscape by providing its customers with services that were not available a few years ago. One can access their company’s data from anywhere worldwide by logging into the account. Small business owners must avail of this technology as the costs are affordable and benefits are more abundant than ever.
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