Why SMEs should embrace cloud accounting software
Looking for a more efficient way to handle your SME’s accounting needs? Here we look into why you should try cloud accounting software.
What is cloud accounting software?
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Every business that is using accounting software can make use of cloud accounting software, particularly companies that are using a hybrid or work-from-home business model.
Cloud accounting software is the same as regular accounting software; only it gives you and your employees access to your numbers at any time from any place, as the information is stored on the cloud rather than on an offline server that can only be accessed in the office.
There are many benefits to using cloud accounting software. This article will discuss the many reasons why cloud accounting software is an excellent fit for an SME, and how you can receive the maximum benefits when investing in cloud-based accounting software.
Why should an SME embrace cloud accounting software?
There are many reasons why an SME should embrace cloud accounting software, from accessibility to easier access. Let’s go through four reasons your SME should use cloud accounting software:
Instant access to real-time data
London accountant Chris Barnard who specialises in Xero accounting says, “Cloud accounting software allows employees access to real-time data. This means that all the data you need is up to date and easily accessible.
There will be no more instances where published reports contain data that is out of date due to the manual work involved in updating data. With cloud-based accounting software, you can edit and monitor information from anywhere, ensuring it is up to date.”
Securing sensitive financial data
When you upload sensitive financial data to the cloud, it becomes safer than an on-premise database.
Cloud security is one of the biggest concerns when it comes to storing information on the cloud, but the most significant cause of cloud security breaches is human error. Human error causes 88% of security breaches. Men are 17% more likely than women to fall for internet phishing scams.
If you want to avoid security breaches, you may consider setting up a managed firewall to protect your data. This could save you $4 million, the average cost of data breaches in businesses.
Data is automatically backed up
When you use cloud-based accounting software, it automatically backs up your numbers. This means that lost internet connection or computer crashes will not cause a loss of information, and you won’t have to remember to save your data.
Cloud-based accounting is cheaper
The software and hardware required for an accounting system can be costly to set up. With cloud-based accounting, there are no upfront costs. You pay a monthly subscription and get your money’s worth.
If you consider using cloud-based accounting software, some online accountants can advise you and manage your accounts to help you achieve your goals. Simply get in touch with your advisors regularly using a zoom meeting for updates.
How to introduce cloud-based accounting to your company
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In order to make the transition to cloud-based accounting, you will need to take the following steps:
- You will need to train your employees on how to use cloud-based accounting software.
- Choose an internal staff member or external hire to promote and answer questions about cloud-based accounting in your business.
- Start moving your accounting over to your cloud-based system.
Once it is established within the company and learned by employees, you will see the benefits of cloud-based accounting.
Conclusion
Cloud-based accounting is the way forward when it comes to SME accounting. Making the transition and taking the necessary steps to ensure your data is secure will save your company time and make accounting easier within the business.
All-in-all, traditional accounting has too many risks when it comes to the potential loss of information, which you can avoid through the use of cloud-based accounting software. Online accountants are a great way to ensure you maximize your company’s benefits from cloud-based accounting software.
