When you take the plunge to start your own business, the last thing you want is to be bogged down by operational tasks. Instead, you want to be focusing your efforts on growing your business. While this sounds like an ideal plan for most small business owners, it isn’t the reality for many. You may be finding yourself knee-deep in paperwork and trying to catch up with administrative tasks when you could be attending to other more important matters.
When we refer to essential operational tasks, accounting and bookkeeping are what usually come to mind. Without them, you can’t track your business’ financial performance and that places the company at risk. However, the task of manually extracting data and generating reports are tedious and time-consuming with a high likelihood of human error. If we’ve learned anything from the current pandemic, it’s the demand to access information remotely and instantly. This is where cloud-based accounting tools come to the rescue.
What is cloud-based software?
Cloud-based software, also known as “Software as a Service” (SaaS), is a program that is made available on a subscription basis. Unlike your traditional desktop program, a cloud-based provider securely hosts all necessary databases and servers, allowing you to access your data anywhere at any time (provided that you have an internet connection). The benefit of a cloud-based system over a desktop program may not seem significant at present, but in a world where digitalisation has become essential, the differences will become more apparent over time. This does not just apply to your day to day tasks, but the advancement of your business altogether.
Here are 3 main pros to using a cloud-based accounting tool:
Using a cloud-based service means that you will only need your device and an internet connection to access your records regardless of your location. This can be an added advantage to your remote working experience as it gives you more control when tracking payments and managing clients.
Thomson-Reuters states that the accessibility of a cloud-system is also the key to stronger client relationships. File-sharing features enable you to collaborate with your clients digitally while saving them the time and hassle of travelling to your office, especially when social distancing is encouraged. The integration across platforms also allows your clients to make any necessary changes online, where it will be automatically updated across all supporting applications without having to import or export data.
Security is critical, especially when your business has access to large amounts of sensitive information. Storing data on a cloud system is safer than having it sit in hardware at the office where there are risks of theft. If you or one of your staff has their computer or laptop stolen, the money and time involved to retrieve the missing data could cost the company dearly. Therefore, storing your data on the cloud will provide better security against theft, especially when many are still working remotely and hardware are left unattended for an extensive period of time in the office.
According to Digit, cloud-based accounting also addresses other safety concerns with higher level and uniform security standards, automatic redundancies for data, and seamless security upgrades and backups at no additional cost to the user. Compared to traditional methods of storing data, this is the safer choice.
You might be thinking that a cloud-based system is only suited to large companies with bigger databases and more staff. In fact, the size of your business does not matter. You could be starting out with only a few clients or run a huge firm with hundreds of employees; the cloud is designed to grow with your business. Not only does it adapt to its growth, but it can also help you boost your business using services and features you would not otherwise have.
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