Why you should consider cloud accounting over traditional accounting
Why you should consider cloud accounting over traditional accounting – Business accounting is an important part of a business cycle. Whoever who has run a business knows that having a good and competent accountant can be a great asset for your business. You can make better decisions at a more timely period and able to derive higher profits because of this competence.
There has been the progress from the old days when people use old school methods to keep track of accounts to the recent pen and paper methods. This method survived for centuries before being overtaken by the trusty Excel Spreadsheet that was easy to use and helped to improve the T balance calculations for many accountants and business owners. In the late 90s and early 2000s came the accounting software that is desktop based. Desktop based software was very easy to use because it uses coding logic to assign the accounting items to their respective units. This evolution of change has helped accounting firms to generate more profit with the same amount of staff members, they could do more work and make more money for their companies. This was great but as time went on, the profits are passed on to the customers when competition causes prices to fall.
With the advent of the internet and the growth of the cloud, there has been a push for more businesses to use the cloud for storage and also for other uses. The cloud is also one of the most flexible ways of getting things done. Internet speeds has improved leaps and bounds and this has allowed many businesses to connect with their customers at a faster manner and get updates at a faster pace as well. Down time is shorter and efficiency has been increasing.
Cloud Accounting has since evolved from the traditional form of accounting and is slowly going into the mainstream, starting with startups that are more technically savvy. Startups prefer things to be easy and convenient, this gives them the advantage over others because they are more flexible than the rest.
So let us now discuss in this article , what are some of the reasons, Why you should consider cloud accounting over traditional accounting:
Reason 1: Cloud Accounting is easy to learn and use
Xero Cloud based accounting software is probably one of the easiest ones to pick up and learn. You will probably be able to learn how to use most of the functions within a 2 hour training and be able to issue quotations and invoices very well on your own. This is one of the best ways to improve your business proficiency and able to deliver good returns for your business.
The functions of the software are very well thought out and there is very little that needs to be thought out when you want to use the features.
User interface is also clean and idiot proof, so the busy entrepreneur will not need to crack his or her head just trying to figure out how to use something that is suppose to save them time and effort.
Training is provided by Xero Accountants and Xero Advisors who are able to help you and guide you on running this software for say your POS usage or even just to issue simple quotes.
If you do have bigger issues, there is a 24/7 support for customers who need help from the help desk directly and they will be able to settle most issues that you might have almost immediately.
Reason 2: Cloud Accounting is cheaper to get onto and cheaper to maintain
Xero Cloud Accounting software is way cheaper than most desktop based software. Most desktop base accounting software can cost between $300 to $5000 and this is just to buy the license to use the software, there is also additional training charges for your staff training and when it comes to maintenance, they will want you to sign up for maintenance packages if not they will not support you in the near future.
For a startup or a small SME, cash flow is always the biggest problem that you will have. Having more cash for emergency uses or when you need to pay for marketing and sales related expenses is money more well spent than having it stuck in an accounting software that doesn’t really generate you income in the short or long term.
With a cheap $30 a month, you are able to access almost all of the core functions of the software and able to get Xero Advisors to closely assist you with your accounting. You are also able to send out your quotations and invoices through this price range, it allows for a great use of the software to the best of your abilities.
Reason 3: Cloud Accounting is updated on a regular basis, you are at the technological forefront
The best kind of software are those that are constantly innovating, constantly improving. This is great for those users who are following closely and not knowing that they might need more functions for their usage.
Most owners hope to find out new functions along the way and also some do feedback when they face problems. When more users do so, the rest of the user stand to benefit from this stage.
This allows all users of the platform to grow and also improve together and all the users are also able to brush out functions that might be buggy.
With new functions coming up every other month, users are able to ensure that they have the best in the industry.
Functions such as auto reading of receipts for example are a great boost for businesses productivity and it helps everyone to be able to deliver more with less time spent.
Reason 4: Cloud Accounting is accessible around the clock and around the world
Do you still remember the days when you need to wait for your accountant to come over to your office, take up all the hard copy documents, leave for their home and get the work done.
Then when you need to find out how you are doing, you will have to drop them a call and they will have to generate a report that is then either mailed to you or emailed to you. So many steps are done to just find out some basic details. Reports that are generated are also delayed by a few days because not all businesses function around the clock for your benefit. Time lapses exist and there is always this slight delay in service no matter what the situation.
Here comes the cloud accounting software that is able to deliver around the clock help for you. You can check out how much you invoiced customers that month because you control the invoicing anyways. Reports can be generated for previous months where work is already done through the touch of a finger on the web application or even better on their mobile application. Everyone owns a mobile device now so it will be great when you are traveling from customer to customer and setting goals and reviewing how well you are doing as and when you like.
With the use of devices such as mobile and tablets, you can also report to your superior or other owners as and when they want to find out more.
You will then have less of a hassle asking your accountant to come up with information and sending them around the world. You get to be in charge and being in charge is always great!
Reason 5: Cloud Accounting is the future
We must always catch up to the future no matter what. Those who don’t will be eliminated by their competition. Business is a harsh world, you either work harder or smarter or you lose and die. This is a fact of life. Cloud Accounting is the future of business because prices are going to continuously decrease with competition, you either change or get forced to change. Cost will continue going up with margins going down. Efficiency is the key in this new age business world.
Cloud Accounting can now link up with banks and government agencies to provide the best one stop solution for all business owners.
Cloud Accounting is also more secure and more reliable than any other forms of methods than before.
Cloud Accounting will bring you success and growth!
Taking advantage of new technology some times can mean life or death for businesses. Profits are what drives businesses to progress and if businesses fail to return profits, they will end up being shut off.
Technology changes are projected to speed up even more in the years to come. Thank You for reading our article on , why you should consider cloud accounting over traditional accounting.
Koh Management takes advantage of up and coming software and technological changes to better deliver accounting services in a meaningful manner to our customers.
Koh Management is also able to assist our customers in corporate secretarial, tax, payroll and incorporation services.
Koh Management would like to work with you to provide high quality cloud accounting services Singapore, visit our website now to find out more: http://www.shkoh.com.sg/xero-accounting-firm-singapore-services/