Cloud Accounting and Bookkeeping: The Way of the Future

By 2020, 78% of small business owners will be using cloud accounting; however, many small business owners are not leaping into the cloud for their accounting and bookkeeping needs. Cloud accounting is quickly becoming a reality of the future and should be embraced by the small business owner. 

Simply put, cloud accounting simply means storing and accessing your accounting and bookkeeping data over the Internet instead of on a computer hard drive or USB stick. Cloud accounting has several benefits to the small business owner; these benefits will vary from company to company depending on the required solutions.

The six main benefits of cloud accounting are:

1. Cloud accounting allows the ability to automate those manual accounting & bookkeeping processes. Cloud accounting allows for automatic bank feeds to ensure that the your records are kept up to date. Cloud accounting automation also allows for accountants and bookkeepers to save time and increase their efficiency when working on your quarter end and year ends and to focus their energies on helping you grow your business. 

2. You can access your accounting and bookkeeping information wherever you are and on any device. With your accounting and bookkeeping records on the cloud, you can access them and use them whenever you need to. No longer will your accounting and bookkeeping records be stored on a computer hard drive at your office or your accountant’s/bookkeeper’s office. You can make business decisions and monitor your company while marketing your company and making sales. 

3. You can upload your data in real time.  The real time reporting associated with cloud accounting allows for business owners to make decisions based upon “real time data” and not data that was prepared three months ago. This means that you can make decisions regarding pricing and inventory strategy based on information that is up to date. 

4. Cloud accounting allows you to easily scale to meet your growing business demands Whether your are a small or large business, owners are always looking to grow your businesses. Dealing with the increase in transactions is easy with the cloud accounting solutions, as it is easily adaptable with little to no upgrading required. 

5. You can go paperless with your accounting and bookkeeping records. With cloud accounting, you have the ability to “snap” a picture of a receipt and have it up-load into your cloud based accounting software. The ability to go paperless helps with reducing the amount of physical space that is required for storage and reduces storage related expenses (i.e. rent). 

6. You can mix it up with other cloud solutions Cloud accounting allows for small business owners to integrate their project management software, e-commerce stores, invoicing systems and much more with their accounting and bookkeeping software. The integration of all the software systems you use into the cloud allows for you to be confident that your information is always up to date with the state of your business, reduces the work load that you are required to do and allows for greater oversight of how your business is achieving it’s goals.

Interested in leaping into the cloud and reaping the benefits? Contact our bookkeeping department for more information on how your business can enter the cloud at kristin@dmca.bc.ca