Picking the Right Financial Cloud Software for Your Business
We live in a technology-driven world today; the use of technology can make it much easier to manage the processes and financials in your business.
Most small businesses are unable to have an accountant on staff to manage their finances. Many outsource their bookkeeping and have coordinated updates delivered to their accountant, while other arrive on their accountant’s doorstep once a year with a box of receipts.
Even if the business is entering their expenses and income data in their accounting system, they’re often not taking advantage of the information at their fingertips.
Too often the data is entered into desktop accounting software rather than into a cloud system that exacerbates the issue.
• Data is only as secure as the security set up on the system
• Backup of data can be infrequent and still on premises
• Often works only on a single computer
• Only one person have access to all the data
• Constant upgrades and data security issues can be costly
• It is time-consuming
• No provision or limited provision of customer service support
When compared to the best tools in the cloud, desktop systems can look archaic. Two of the leading cloud-based accounting tools, Xero and Quickbooks Online, offer some insight into the advantages of using the cloud.
• Data is stored on some of the world’s best data hosts with world-class security
• Backup of data is automated and frequent
• Data can be accessed from nearly any device with a browser and internet connection
• Both business owners/managers and financial pros can have access to the data at any time
• Ongoing and automated upgrades, performance, feature and security improvements
• Data entry is quick, convenient and can be automated when connected to other cloud systems
• Customer support is quick, straightforward and right in the app
By making use of various cloud-based accounting software, small businesses can save a lot of time, work more effectively and keep better track of the cash flow.
it is critical to map out the key processes in your business and match the tools to fit
More and more small business are now taking advantage of the cloud-based accounting software, and more and more accounting firms are offering such services.
Financial pros, often only privy to past data, can now access to-the-minute financials and forecasts giving them the ability to offer high-value business advice to their clients.
Selecting the Right Cloud Tools and Accountant for Your Business
When making a move to the cloud, or super-charging your current cloud system, it is critical to map out the key processes in your business and match the tools to fit. Although there are general themes that affect nearly all small businesses, each business has its own unique set of challenges that requires a very particular system to address those issues efficiently, effectively and appropriately.
What are the critical issues in your business? Do you have daily cash sales but large, monthly inventory purchases? Do you send out large invoices, net 30 but they never seem to arrive on the due date? These are just examples of two polar opposite challenges of the numerous issues that small businesses face.
It’s critical that you map out your processes, identify the key problems that affect your particular business, then match the right tools to your needs. There is a new breed of accountants that are becoming experts in this area and can help you diagnose your issues, lay out and set up a system, then offer both the usual tax preparation with ongoing analysis and advice to help you better manage your business.
A word of caution: The intense competition between accounting companies has forced a few of them to offer various “packages” on their websites. As a small business owner, you need to be very careful potentially selecting a service/software package that just doesn’t match your business needs.
Often these package deals, although seemingly clear and cost-effective, can end up costing you in the end through inefficient and poorly matched systems that don’t address your core needs.
If you are considering a package deal, it’s a good idea to spend the time researching and discussing the offered tools to ensure they will meet your needs. It’s also important to ask how flexible they are if your needs change and you require tools that are outside of their given set.
It can be daunting and time-consuming to find the right cloud-based toolset and economic team to suit your business, but the payoff can be huge. The right mix of cloud tools, working together in concert can offer unparalleled efficiency, clarity and cost savings that can mean more profit, less wasted time, fewer mistakes and access to more professional financial advice.