As more and more businesses jump on the cloud accounting bandwagon, it’s becoming clearer that there’s really no other way to go. With 78% of business owners laying plans to implement a cloud accounting solution in 2020, there’s no doubt where the majority opinion lies.
Why are business owners around the world so interested in cloud accounting? The fact that 77% of businesses worldwide say that cloud technology gives them a competitive advantage must have something to do with that. The unfortunate reality, however, is that most small and medium businesses within Trinidad and Tobago and the wider Caribbean region are yet to implement cloud accounting technology and reap its benefits.
If you’re still trying to wrap your head around the concept of cloud accounting, we understand entirely. That’s why we took the trouble to comprehensively explain what cloud accounting is and how it works.
However, if you’re still not entirely sold on the idea of implementing a cloud accounting solution for your small business, you’re setting yourself up for a big loss. Here are 8 reasons why cloud accounting makes total sense for your small business.
#1: 24/7 Remote Access
The first real benefit you will quickly derive from cloud accounting is the virtually universal access you will immediately gain to your data and crucial accounting resources.
Since cloud accounting enables you to store all of your data on external servers, you can recall and work on them no matter where you are. And there will be no need for downloading either. All you’ll need to do is log in to your platform and you can have everything you need at your fingertips, anywhere and across all devices.
So, rather than be tied to a physical location or a few dozen terminals in your office, you and your employees can access crucial data, on-the-go. This is a huge advantage for work at home arrangements with employees.
#2: Real Time Reporting
If you thought on-the-go data access was great, this one’s even better. Cloud accounting solutions such as Xero Accounting (which is our #1 choice here at FirstLink) give you a clear view of your financial position and performance, in real time.
Wondering how that works? Here’s how. With the integrative capacity of cloud-based applications such as Xero, you can set up third-party integrations to complementary software applications such as Point of Sale and inventory management software as well as crucial data sources that serve your business financial data.
As a result, when developments occur, you don’t have to call up Bob at the office to set them up in a spreadsheet and share with the team. Instead, updates are instantaneous and can be set to take place at whatever intervals you desire. This is one of the reasons why Verizon found that cloud technology gives 77% of businesses a competitive edge.
#3: Lower Capital Investment
One of the biggest concerns that business owners have about cloud-based accounting is its subscription cost model. Fully 20% of organizations raise this at some point in time, wondering if it makes sense to shell out $40 monthly on accounting solutions in the cloud.
But when you consider that the comparison between traditional accounting and cloud accounting is based solely on access costs, you’ll see that cloud-based solutions actually cost less in the long run.
Apart from access fees, traditional solutions often require a lot of value-added expenses. These include an investment in IT hardware and maintenance as well as server solutions to house both application software and the related data. You will need the help of an IT expert to help maintain both the server and the office network.
This translates to much more than $40 a month in the long run. But with cloud-based accounting solutions, you outsource all those functions and costs. You only pay for the exact capabilities that make sense for your business and not a dollar more.
#4: Enhanced Security
It’s also surprising that many businesses hesitate over cloud accounting due to security concerns. After all, since your sensitive data is being sent over the internet (which is notoriously prone to hackers and hijackers), as well as being housed off-premises, what’s to stop a security breach?
Well, plenty, actually. Apart from providing access to enable you to utilize their cloud solutions, the second thing that most vendors spend time on is refining strategies to keep your information safe. This is why most employ military-grade security and encryption measures to keep your data from being compromised.
In this way, it’s no overstatement when we say cloud-based solutions offer far more in the way of security than your business can provide. This is why, according to RapidScale, 94% of businesses witnessed an improvement in security after switching to the cloud.
#5: Greater Collaboration
One of the biggest problems that employers and their teams face is the annoying inability to collaborate on-the-go. Most often, with traditional systems, teams have to wait for a face-to-face at the office or employ inconvenient channels to share crucial data, and even this is on a limited basis.
But cloud technology makes collaboration a ridiculously simple process. With technology, all your team members can view and access information immediately after it becomes available.
Many include social spaces where you and your employees can connect, analyze and deliberate on information as it comes in, no matter where you are in the world. So you can even do much more with less, saving time on resources such as office space and making your business leaner and more agile.
#6: Go Paperless
Even if you’re not worried about the effects of paper use on the earth’s environment, it should bother you that you have to print crucial data in order to share it or jump through hoops to share electronically.
Through the collaborative capabilities in cloud-based accounting software, all the information you need to share can be at your fingertips and share-ready in seconds. Your business will end up saving money and resources because you no longer use as much paper in your operations.
And as a nice cherry on top, you and your business get to do your part towards saving the earth and its environment.
With cloud accounting, you gain better control of crucial financial processes in your business. Every step of the process can be easily seen, extracted and analyzed in the same format and from anywhere, even in real-time.
This helps eliminate the possibility of omissions or errors as it drastically cuts down on the possibility of re-keying data. This also saves your business time and lets you and your employees spend your time doing more productive things.
It will also help you quickly meet business demands, as 65% of businesses agree, since your accounting and IT solutions will only take up a fraction of your time and resources. Good deal eh?
#8: Achieve better insights
It only makes sense that we end with the biggest long-term benefit your business will gain from cloud accounting. If knowledge is power, which it undoubtedly is, cloud-based accounting puts you in the league of Champions with the insights it delivers.
This is because it allows you to integrate more sources of information, access them quicker and from anywhere, and do far more than you could have thought possible with that information.
It gives you a bird’s eye view of crucial information about your finances and helps you predict or react with optimal speed and accuracy. The ultimate value of adopting a cloud accounting solution is the foundation it builds to provide real time information which can be used to make data driven business decisions.
These reasons and more are the impetus driving the increasing acceptability and praise for cloud-based accounting systems. Now that you know what your business stands to gain, you have a bit more insight into why you should be seriously considering an upgrade.
If you would like to discuss the specific benefits that cloud-based accounting will have for your business or if you’d like to know how we can help you implement a solution for your business, schedule a free consultation today. We’ll be delighted to help.