Cloud Based Financial Bookkeeping
Businesses all around the world are starting to move towards cloud-based software in order to manage their operations. According to Flexera’s yearly report on the State Of The Cloud, the rate at which businesses are making the switch is on the rise.
Of course, the switch from a traditional setup to that based on the cloud can be a daunting affair. There are ways to make this transition be as smooth as possible, all with the aid of Cloud-Based Financial Bookkeeping Software and Services.
The Benefits of Proper Bookkeeping
According to a research article from the Journal of Accountancy, many businesses are also starting to understand the importance of analytics skills. About 61% of 2,100interviewed CFOs said that the ability to parse through and interpret this data is deemed mandatory for aspiring finance employees. However, all this depends on whether or not the business practices proper bookkeeping procedures.
Proper bookkeeping can help when you wish to develop plans for business expansion, or just when you want a clear overview of your business metrics. Having proper procedures for bookkeeping can help in accounting and data analysis. In fact, some sources such as the UNC Kenan-Flagler Business School even put data analysis as an important part in business decision making.
Approaches towards Bookkeeping
There’s a variety of ways to approach bookkeeping. Some business owners opt to do this by themselves, especially those who want a more direct hand in daily operations. There are also companies who employ professional bookkeepers, either as full-time employees or contractual workers. This does help in freeing up the owner’s time to focus on other avenues of the business, but it also tends to be the pricier option.
However, with the arrival of digital innovations, businesses are starting to use dedicated bookkeeping software in order to manage their financial data. These accounting and bookkeeping suites offer not only real-time tracking of your business, but also inventory management solutions and easier access to financial reports and statements.
Businesses are hectic, especially in fast-paced retail businesses that operate on online marketplaces. With regards to the multitude of responsibilities already in place, why not leave your bookkeeping needs to expert firms? Through the usage of remote or virtual bookkeeping options, business owners can contact an online bookkeeper in order to aid them in business assessment, monthly financial reports, tax filing and planning, and many more processes.
Adapting to your new Cloud Solution
Many businesses tend to use the default accounting software that comes bundled with their desktops, such as Microsoft Excel, for their Bookkeeping purposes. If your traditional bookkeeping and accounting solution in place has an online mode, this should make the switch easier for most. Upgrading to a cloud-based solution should not be too hard for those who take preparation for it.
Take Time To Learn The New Software
Although it may be enticing to immediately dive into the software, you may find yourself more confused with how it works. Make sure to check out some online tutorials to make sure you know what to expect. This is also the time to ask a few questions regarding how you’re managing the transition:
- Are you handling the process well? Does this help your employees communicate and collaborate easier?
- Does the new software aid in business processes? Are there efficiencies gained from using this new system?
- What features do we make use of? Does it allow us better access to our financial data compared to our old software?
Proper Timing For The Transition
Timing when your business starts the transition is important in order to make it easier to add in your old financial data while your cloud-based bookkeeping service updates itself with the new data. Two events that can be a good time to start this switch include:
Free 30-Min Strategy Session
By the end of this Strategy Session, you will have a clear understanding of the next steps you can take for your business to take advantage of the tax deductions you are missing out on.
- The start of the fiscal year
- After a major cash reconciliation or Accounting Cleanup
A good idea to implement is to do this transition in manageable shifts. Make sure that the date when you initiate this switch should be during a period where data changes and interruptions are reduced such as your business’ lean seasons.
Ready Your Data In Advance
In preparation for your transition, make sure to organize what data needs to be moved for a seamless transition. Should your prior software solution have an online mode, data importing may be easier. However, it is still a good idea to prepare your data in regard to the new cloud-service that you will be using.
This may involve renaming certain variables, rearranging your data in a new way, or other naming conventions that affect the software. Cloud-Based Financial Bookkeeping services tend to have a detailed instruction page that will guide you through this formatting process, should you need it.
An Overview of Quickbooks: A Great Bookkeeping Tool
For our company, we make use of QuickBooks Online in order to organize and record all of your financial invoices and receipts. This service makes use of a monthly subscription model which provides both us and our client with an online platform that’s both mobile and easy-to-use.
This software is an example of an SaaS-based accounting software, one that makes use of the web in order to host software. This gives the benefit of not relying on a physical server, as well as new updates and features integrated immediately without the need for downloads.
Here is an overview of some of the features that come with Quickbooks online:
- Creating Financial Reports and Statements
Quickbooks allows for the creation of clear financial reports and statements, giving you access to real-time business insights. Reports such as cash flow statements, balance sheets, and many others can be accessed through the QuickBooks Dashboard. Reports can also be customized in order to emphasize the data that is most relevant to your business.
- Bank Feed Setup and Monitoring
Tracking transactions from multiple banks is simple thanks to QuickBooks’ bank feed integration system. Their system not only receives transactions immediately as soon as it’s registered, but also categorizes them in easily manageable categories. Your invoices will be automatically sorted as income, while expenditures will be categorized with expenses.
- Integration with Online Marketplaces
Managing your inventory is made simple through QuickBooks’ ability to sync with various online platforms. eCommerce sites such as Shopify, Amazon, eBay and many more can be connected to your QuickBooks client easily. You can then use the software in order to see your available stock, sales figures for various items, orders from suppliers, and even alerts in case of low stock.
- Tax Management Options
The QuickBooks software suite also provides users with a wide range of tax analytics tools in order to keep on top of their tax situation. Their software allows you to check in on the total amount of taxes you owe, helping you to optimize your tax planning strategies.
- Mobile App Integration
CFOs and Business Owners on the move will appreciate the mobile app option for QuickBooks. This helps you to capture business expenses by taking photos of business receipts and attaching them to your bills. The system is capable of categorizing these expenses and showing them to you through reports and graphs that tally your profits and loss, all in the palm of your hand.
How Free Cash Flow Aids Online Businesses Using Cloud Based Financial Bookkeeping
At Free Cash Flow, Cloud Based Financial Bookkeeping is but one of the many services we offer to various clients. Whether you are an Amazon FBA seller, SAAS Agency, or other type of online business, our team is ready to offer tax and accounting services honed by 20 years of service. We offer a variety of cloud-based bookkeeping and accounting services suitable for both big and small firms alike.
Even entrepreneurs such as Content Creators and Social Influencers stand to gain from our experienced team of professionals. We can provide consultation regarding affiliate marketing, sponsorship deals, and monetization through merchandise and other facets.
We deliver our bookkeeping services through popular accounting software such as Quickbooks and Xero, both options that support the automation of various business processes. Not only that, we use these software solutions in order to aid in managing your inventory and tracking all records and cash flow transactions at all times of the day.
No matter the size of the company, it is always necessary to keep tabs on your bookkeeping. This is especially important in gauging the financial health and vulnerabilities of your business. Proactive business owners who wish to get ahead of these problems, as well as those seeking out expansion and growth opportunities, can contact us for various strategy calls detailing what measures you can take for revenue expansion.
If you are interested in taking up our services, you may schedule a free Tax/Accounting Strategy Session to discuss potential options. Alan Chen, CEO of Free Cash Flow and a CPA Accountant with more than 20 years of experience, will be taking your call to talk with you about the various benefits that bookkeeping services can have in meeting future online business goals.