Accounting is a vital part of any business. Yet, the process takes time, which many small businesses simply don’t have a lot of. Often, they are forced to divert time to accounting at the expense of other business functions.
Fortunately, advances in cloud-based technology make the job far less time-consuming. In layman’s terms, cloud-based software, or ‘The Cloud’, is software that runs on shared computing resources, rather than on a personal computer.
Though the technology is not new, cloud-based software has only recently become widespread. It may overtake traditional desktop technologies in the near future, with many businesses shifting to cloud-based technology to manage an increasing amount of data.
In finance, cloud-based accounting is gaining an increasingly important role. Many firms and enterprise resource planning (ERP) providers are advocating for more systems for managing finances.
For small business owners, cloud-based accounting can be beneficial. From simplifying to streamlining operations, it saves time and realigns the focus on the business’ core functions.
Accessibility and Organisation
With cloud-based software, users have greater access to information. A stable internet connection and web browser are all that’s needed, and all records are available with one click. The ease of access allows for greater transparency, as users can simply log on and search to check for any discrepancies, especially when dealing with small vendors and distributors.
Not only does this clear the room of clutter from paperwork and books, it also ensures that team members can accomplish tasks regardless of proximity.
Security is critical in small business accounting. The main disadvantage of desktop-based accounting is vulnerability to viruses, which are becoming more sophisticated. Even with a robust firewall, the risk of infection is a looming threat. In contrast, cloud-based software is highly secure, protected by high levels of encryption and a secure HTTPS connection. Data is automatically backed up and monitored 24/7, minimising the chances of data loss.
With the limited resources of small businesses, it is crucial to conserve time and effort whenever possible. Migrating to the Cloud allows for efficient and streamlined financial management.