Cloud-based accounting is the practice of using an accounting system that is accessed via
the Internet. Your business books are kept online, including records of your income,
expenses, assets, and liabilities.
Similarly to online banking, the information is safely stored and encrypted, meaning only
people with the login to the account can access the data. In this article, we are going to
discuss how cloud-based accounting works and the benefits it can have for your business.
How Does Cloud-Based Accounting Work?
Typically, you will research cloud-based accounting systems and then choose which one
you’d like to subscribe to. Some popular examples of cloud-based accounting systems are
Xero, QuickBooks, and FreeAgent.
Though the cost of having a subscription to a cloud-based accounting system varies, there
are many different packages available that are designed to suit the different business types.
Once you are subscribed and have moved your books over to the cloud, you will then be
able to access your accounts from anywhere using the Internet, either on a website or on an
app.
Most people will connect their business bank account to their accounting software, as this
enables transactions to go straight through from their bank to the accounting software. This
saves them from having to do a lot of data entry.
The Key Features of Cloud-Based Accounting
Here are some of the key features of using cloud-based accounting…
Your income and purchases data will flow straight through to your books from your bank, meaning you don’t have to spend hours manually adding them.
You can access insight into your current financial position with the tap of a button.
You can share access to the system with other members of your business and/or your accountant, making it easy to streamline your finances and collaborate with your team.
You can easily access financial information, such as how your cash flow is looking, what bills are due, and who owes you money.
The Benefits of Cloud-Based Accounting
Here are some of the key benefits of using cloud-based accounting for your business…
Access to your financial records from anywhere at any time.
The chance to go paperless, leading to increased sustainability.
Improved accuracy and compliance.
Less administration.
It’s cost-effective, as working online reduces your IT costs.
Sharing and collaborating are made simpler.
Your finances are streamlined and easier to understand, particularly if you have an accountant too.
The Bottom Line
If you are looking for a more automated, streamlined, and simple way to keep track of your
business’s financial data, then cloud-based accounting is for you. You do not need to worry
about how to use it, as most accountants are very familiar with the variety of cloud-based
accounting systems.
Here at Suzanne Lock Business Services, we use industry-leading software and we know all
about the many cloud-based accounting systems from daily use.
We help lots of businesses with the transition to cloud-based accounting. If you’re
interested or you’d like to know how else we can help you and your business, schedule a call
today. We make your business, our business.
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