Taking note of and recording the income and expenditure of your small business in order to monitor your financial performance and sales is nothing really new.
This practice dates back to many many years ago.
If you have heard of double-entry accounting for your balancing requirements in your general ledgers, you can trace it and it has proven to be around for centuries.
As accounting software has existed for decades, providing the means to record, track and monitor the money coming in and out of the company, so has the innate desire of every business owner to improve and excel in the area of managing books and doing intricate accounting.
And this is where cloud accounting enters the picture.
So, how does cloud accounting become valuable to the business?
Cloud accounting is basically powered by cloud-based management software.
With cloud accounting, accounting per se will never be the same again.
It can revolutionize the efficiency of your accounting practice, improve bookkeeping, streamline your financial management and provide real-time data on your key figures.
These are just the basic ones but in essence, there is still so much more that cloud-based management software can offer to your business, providing more value.
If you are familiar with desktop accounting, then cloud accounting is not foreign to you at all. It basically has the same functionality but then it transitions the process of accounting to the cloud and there it is expanded and modified to produce faster and better results.
Most cloud platforms have an open API which means Application Programming Interface.
Simply put, API is a gateway that gives access to different software systems to integrate and synergize with each other.
For cloud accounting, an API is a very crucial factor to connect to third-party software.
How does Cloud Accounting Work Exactly? What are the benefits of having one?
For many business owners, shifting from traditional accounting software from on-premise installation to the cloud is a challenge.
But the transition brings to the table more benefits than drawbacks.
In fact, many hindrances and cost requirements of traditional accounting are further removed and that cloud accounting has proven to be more beneficial.
Here are the areas where cloud-based management software adds some value.
1. Value on Access
Cloud Accounting provides you access from any location, anytime, 24/7.
Having a central accounting software that is office-based via desktop or your local network server is a thing of the past.
With cloud-based management software, all you need to do is simply log-in via a web browser from your laptop, or use your provider’s mobile app to access your accounts from your phone or tablet — anytime, anywhere.
2. Value to Real-Time Data
Updating your books and keeping up with bank statements and reconciliation paves the way to achieving real-time reporting.
Thus, data is instantly provided that will help give an overview of the financial standing of the company.
This plays a vital role in planning for future expenditures and deciding on big financial and strategic decisions as a company.
3. Value For Money
Cloud accounting takes out added costs in manpower required as well as the hardware and network maintenance and upgrades of a traditional desktop or on-premise accounting.
4. Value to the APP Ecosystem
The APP ecosystem is vast. And open APIs mean you can further augment and add a couple of third-party apps and practical tools to help expand your core business.
Some useful tools can reduce costs, helps save time and generally makes accounting and admin work more seamless and efficient.
5. Value for security and control
Cloud accounting software grants access to accountants, bank advisers, and other significant others who play a major role in accounting.
Gone are the days of using a USB that is prone to getting lost or hacked.
Your accountant will enjoy safe and secure access to all your financial information, and take note, in real-time.
This method is faster, safer, and more efficient, going forward.
6. Value for Bank Connection
Many cloud accounting software provides live feeds and connections to your bank accounts, giving you the ability to link your banking directly with your accounting.
This is very helpful. Instead of manually checking on your bank statement from the banking portal, there is a ready live feed that pulls your bank data and shows you the figures quickly.
7. Value for the Latest
Logging into the cloud with your cloud accounting software always provides you with the latest version of the software.
No need for constant updating anymore.
8. Value for Online Payment Capability
Payment apps can be easily connected to your online accounting and invoices.
This allows your customers to pay you through online means, speeding up the process and providing ease and convenience not only to your customers but also to your admin staff.
So why should you use cloud-based management software for your business?
Because it adds value and the benefits are tangible and real.
For a quicker way of doing things, EasyFS is the one for you!
EasyFS is a Software-as-a-service (SAAS) sales, inventory and accounting system designed for Micro, Small and Medium (MSME) Enterprises.
Effectively monitor your sales, check your LIVE inventory stock quantity, and most importantly, determine the status of your business’s financial health.
On top of that, EasyFS is CAS (Computerized Accounting System) compliant ready for government taxation in the Philippines.
Check out https://human-incubator.com/easyfs/ for more details.
