Cloud Based Bookkeeping Services
Every business owner, whether they are based in online stores or brick-and-mortar establishments, stands to gain from proper bookkeeping. This involves recording and keeping financial transactions on a daily basis, as well as other functions such as preparing financial statements and cash reconciliations.
Along with a variety of functions, Bookkeeping helps to figure out how the financial transactions done at the behest of the company affect it over a specific time-frame. It also aids accountants by providing the necessary data needed for their operations. A business cannot operate efficiently when running on faulty information and inaccurate data, making bookkeeping all the more important.
Data over the Cloud
Cloud Computing is but one of the many innovations made to further business efficiency. The International Data Group tallied that at least 81% of businesses employ some form of Cloud Based software in their day-to-day operations. Not only that, Cloud Based applications are expected to become more common as various business procedures are moved from a physical format to a digital one.
Cloud Based Solutions for bookkeeping and accounting have been offered for years now. These services have helped many small business owners understand their financial status and expand their endeavors. If you’re one of the few business owners who still does bookkeeping through traditional means, maybe it’s time to look into the world of Cloud Based Bookkeeping Services.
Cloud Based Bookkeeping
To get to the meat of the conversation, Cloud Based Bookkeeping Services allow bookkeepers and accountants to work with their clients through a remote interface. It allows for certain benefits that are unimaginable with a traditional setup.
Accounting software makes it so that business data that is recorded by the bookkeeper can be shared onto the account such as financial records, updating statements, and cash reconciliations. This is all while the business owner tends to the operational side of things, free from the hassle of traditional bookkeeping.
Below are some financial and organizational benefits that come with the use of Cloud Based Bookkeeping Services.
Lower Costs on Maintenance and Operations
With traditional setups for bookkeeping, business owners have to contend with the initial costs for setting up the necessary infrastructure. This may take the form of software licensing fees or any needed hardware for making your digital cloud. Not only that, but they also have to deal with any subsequent costs that come up with maintaining said infrastructure. With Cloud Based services, this is somewhat circumvented through the use of the devices managed by the service provider.
Manual Bookkeeping through the use of traditional software can be compromised without major investments into data security. Even if one were to make these investments, there would be massive downloads that can quickly eat up your storage device’s available memory.
Even with all of that, a significant portion of your bookkeeper’s data can be lost if the device used to keep your data in is lost. Cloud Based Bookkeeping software helps in this regard as all of your data can be quickly recovered through an online interface. Most Cloud Based Bookkeeping Services allow for backups of your financial data, allowing you to recover them as soon as you are connected to the internet.
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.
More benefits to the Cloud Based bookkeeping model include real-time looks into the business’ operations, as well as the automation of certain processes such as invoicing. This can lead to a higher amount of productivity and fewer hours billable should your business be employing external accountants. Automation, in general, also allows for protection against computation errors which are prevalent in manual bookkeeping procedures. These services are capable of creating numerous financial entries in a short matter of time, all with astounding accuracy.
Other services which can be automated include tax compliance procedures, payroll, inventory management, and others that can be done through this cloud accounting service.
Mobility In Disseminating Financial Data
Lastly, the location of files and data can be easily tracked on a Cloud Based service. This is in stark contrast to the days where specific files would be kept in cabinets. Services tend to have their file manager to store company files and passwords within a secure cloud environment. The lack of paperwork is also a boon as companies can pivot towards a paperless environment while still being able to look over data quickly.
Those looking into the Hybrid Cloud setup also have the added advantage of employees being able to access the same pool of data from any branch location, should your business have any.
The ease of recording your daily financial transactions makes the process of historical bookkeeping much easier to handle. This can open your business up to potential tax reduction and saving measures. It also allows for easier cash flow analysis and revenue expansion options that would have been missed without access to a larger time frame of financial records.
Tax Planning and Compliance
Paying taxes efficiently is an element of an online business’s job, as well as making sure to stay compliant with regulations. Sales Tax Management can be a problem for smaller businesses, so the use of a Cloud Based bookkeeping service is important in keeping yourself ahead of this issue.
These services tend to have the necessary tools in managing your sales tax rates, the amount of tax to be collected, and even the data to be used for filing your tax obligations. Quarterly Sales Tax Analysis can also aid business owners in keeping on top of the ever-changing Tax Laws.
Is My Financial Data Secure with Cloud Based Bookkeeping Services?
This is an important question to ask, especially in regards to migrating to a new Cloud Based bookkeeping service. However, the digital nature of these sorts of bookkeeping services lends themselves to a plethora of security benefits.
Along with owners being able to access finances from anytime and anywhere, they can also be sure that their data is secure within the cloud. Through the use of encryption technology, the data transferred is resistant to interception, keeping it safe from prying eyes.
However, concerns also arise with Cloud Based Services. If your Cloud Based bookkeeping service makes use of a Public Cloud, this might mean that there could be multiple clients recorded onto one system. Cloud Based services with inexperienced personnel may also cause your data to be altered or even corrupted. There is also the general threat of hacking attacks and data theft. Should the service fall victim to a hacking attack, your data could be compromised along with the other clients recorded within the machine.
A wide variety of security solutions are employed by Cloud Based services to protect themselves from data attacks. These can take the form of server firewalls, SSL Certification, Data encryption, and data backups which minimizes the threat of data loss. Should your business be wary of privacy assurance, check whether or not your Cloud Based service is TRUSTe certified. This certification means that the business is compliant with data protection regulations, ensuring that your data is safe.
When looking for a Cloud Based bookkeeping service, make sure that they keep their data within a secure place. Make sure to ask about their protocols during a hacking attack, along with whatever measures they have to control access. Other features include file backup procedures and data redundancy, ensuring that file losses are minimal.
Great Choices for Cloud Based Bookkeeping Services
Running your business, whether or not it’s based online, can be made much easier with Cloud Based Bookkeeping Services. As your business grows, it also means that you have to keep track of more complex sets of data. Having the ability to track your different accounts and financial records can keep you competitive against your market rivals.
A lot of options are available for small businesses when it comes to Bookkeeping services. It’s best to go for the one that’s most suited to your organization’s needs. However, we can make some suggestions on Cloud Based bookkeeping services that can help in record-keeping and inventory management. Here are the two that we find to be great choices for both established businesses and new startups.
QuickBooks, and its Cloud Based counterpart “QuickBooks Online”, is one of the easiest accounting suites to get into. Offering a wide variety of financial features, it stands as one of the most user-friendly ones to date. Aside from that, it also offers a mobile app that covers many of the tools available on the browser-based version.
Within QuickBook’s main dashboard, you’ll be able to see an overview of your financial situation. Information such as accounts payable, accounts receivable, income, expenses, and even a checklist of tasks are all available there. There is also the Business Overview tab which shows a graphical representation of your business’s cash flow and sales totals.
QuickBooks and QuickBooks Online have been designed for both professional accountants and users with no accounting experience whatsoever. Those looking into the software may want to dabble into automating particular processes and tasks. Errors that are common with manual entry can be avoided with automation. QuickBooks Online can capture data from printed sources, as well as digital ones. It then cross-checks this information with existing records to avoid errors or duplicates.
With a large number of resources to learn from, new users are sure to find whatever they will need for day-to-day operations. There is also an online forum where you can ask questions and get the support you need for troubleshooting issues. Online chat and email options are also available for those who want support from Inuit themselves.
Another choice of bookkeeping and accounting service that aims for simplicity, Xero is made for small business owners. It allows owners to keep a close eye on their accounts, as well as a way to manage their inventory remotely. It also lets your business’s fixed assets, a feature that isn’t prominent in other accounting software.
It has a different layout when compared with QuickBooks, preferring a more compact and minimalist take with their main dashboard. The balances of connected accounts are displayed here, as well as reconciliation options for these. It also shows a graphical representation of invoices, bills, and the cash flow of your business. The main dashboard can also connect you to other related tabs such as Business, Accounting, Contacts, and Projects.
Xero has also been rolling out automated processes to their software, making it possible to access real-time data about your transactions. One of its add-ons, Xero Analytics Plus, allows the app to project bank balances and cash predictions. Scenario planning features is also available with the add-on, as well as displaying your business’s financial status and other important data.
For new users, there’s a bit of a learning gap to cross when it comes to using Xero. Their online site comes with documentation that offers detailed instructions on the software. Advisors can help your small businesses with using the app. Although you can send in your questions through email, it would be nice if they could supplement it with other communication lines.
Final Take on Cloud Bookkeeping Services
The current trend of businesses to move towards Cloud Based bookkeeping services to store their financial data is one that’s to be expected to continue. Should you be looking for a firm that makes use of said services, make sure that they use accounting software that is both reputable and reliable. Our organization makes use of QuickBooks Online and Xero for managing our client’s financial accounts and tax obligations.
It’s built on Software as a Service (SaaS) subscription model which means that the pricing is relative to the applications used. Although traditional desktop applications might not be going out of style, it’s starting to look like a smart choice to move towards Cloud Bookkeeping. The savings in time, cost, and efficiency are paramount to keeping your company in competitive shape. Automation takes this to the next level, streamlining financial processes and allowing owners to invest more time into developing their operations.
Businesses all across the globe are making use of Cloud Based Bookkeeping Services. Now’s the time to make the switch and give your business the tools to start expanding to a lucrative future.