TOP 5 BENEFITS OF CLOUD ACCOUNTING FOR SMALL BUSINESS

Man analyzing financial data and charts on computer
Accounting is a key to manage finances and bookkeeping in a business. The easy and error-free way to manage business finances is to utilize tools available in the market. Accounting software helps you to manage cash flow, generate invoices, have an audit-ready business, and make preparation for tax time. These tools make handling your small business easier and simpler. An expensive software is not recommended for a small business because small businesses need only to manage simple accounting operations and general ledgers. Cloud accounting software is simple and has packages specially designed for small business. These are accessible online and simplify accounting tasks like bookkeeping, purchase history, and inventory management. Updating of new versions and backup data storage services are provided by the application vendor.

CLOUD ACCOUNTING: Cloud accounting is the same as traditional accounting and bookkeeping procedures done on an accounting software. The 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 desktop software. The internet or another network is used for the process. The users access the cloud accounting software through a cloud application service provider. The software has not been installed on a computer. It can be accessed from any place in the world, provided the cloud application service provider is present.

Benefits of Cloud Accounting for Small Business

1.  Having access to accounting and bookkeeping data anywhere and anytime in the world. You can spend time in 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. An up-to-date view of the financial status of the business allows you 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 do need time to interpret accounting information. Accounting software makes it easy to interpret accounting information.

3.  Cloud accounting software has multi-user access.

4.  A better relationship is built with the accountant. You can access accounting data online and then give quality time to your accountant for discussion related to business bookkeeping.

5.  The Cloud accounting software is automatically updated.

6.  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

Here are five cloud-based accounting software with reasonable prices.

  1. FreshBooks

You can access it from the 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 the new user having a business that costs $19.95 in a month.

  1. QuickBooks Online

QuickBooks is the bookkeeping and cloud accounting tool for small business 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 systems like PayPal, eBay, FreshBooks and web stores can be connected to outright and data can be easily exported from one app to another.

 5. Xero:

  • A 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 Accounting software and applications make bookkeeping and accounting operations easy and less time-consuming. Cloud accounting software provides small business owners a great feasibility in accounting and bookkeeping at reasonable costs.

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