The Benefits of Cloud-Based Accounting

07 Nov The Benefits of Cloud-Based Accounting

benefits of cloud based accountingIn a previous post, we shared some information about cloud-based accounting, what it is, and its growing usage. Because at KYB we experience first-hand the advantages it offers, we’d like to also share some of the specific benefits businesses can expect when using cloud-based accounting.

The Benefits to Your Business

Traditional bookkeeping, even when managed digitally, places many restrictions on how, where, and how quickly various tasks can be accomplished. Not only is cloud-based accounting easily accessible, it also brings an aspect of efficiency to the process.

Consider these scenarios of employees in various environments without cloud-based processes:

  • At a conference out of state, several partners need to submit their expenses and provide receipts.
  • At a remote location, a third-party bookkeeper needs to process payroll.
  • At her home office, a project manager needs to check invoices for a particular vendor and confirm which ones the company has already paid.

Traditionally, each of the examples above requires an individual to be physically at an office, with appropriate access to a specific device containing the necessary information such as spreadsheets, documents, passwords, and more. For example, the partners attending a conference would need to save physical copies of their receipts, fill out the appropriate expense report paperwork, and manually submit their expenses once back at the office.

The third-party bookkeeper would either need to make regular trips to the office to pick up reports, or receive digital copies of every report, which may not be secure depending on the communication method. Similarly, the project manager at her home office would need to go into the office to manually review the invoices and check with the accounts receivable department to confirm the payments that need to be made.

On the other hand, when a business leverages cloud-based accounting, the entire process becomes smoother, faster, more efficient and more convenient: a bookkeeper can easily process payroll from anywhere; the project manager can access invoices from anywhere; and partners can scan and submit receipts immediately and remotely, whether from their hotel rooms or the dinner table.

Here are some of the many benefits of cloud-based accounting:

Improved Client and Vendor Relationships

Cloud-based accounting serves both your clients and your vendors, by allowing you to react more quickly and accurately to their needs.

Efficiency

Cloud-based accounting removes extra steps, such as manual data entry or being location-dependent to access certain files or perform certain tasks..

Flexibility

The cloud is accessible from anywhere, including mobile devices such as smartphones and tablets. This enables business owners and their teams to access the data they need no matter where they are or what time of day it is. It’s also extremely secure, which means they can be as confident in their work on-the-go as they are in the office.

Improved Integration

Many business-focused services are now on the cloud or connected to it, which makes it easier to compare and view certain information or processes together. For instance, cloud computing makes it much easier to combine financial information with a CRM or other company-wide systems.

Increased Productivity and Collaboration

The result of the above two benefits is a boost in productivity, since employees can now work from anywhere, anytime. Team members can be in different locations  and still view accurate and up-to-date information at the same time, in real-time. This means your team and advisors can work together more easily to finish projects or make key decisions.

Automation

Low-value processes, such as data entry, can be automated with the cloud. This saves valuable time entering, organizing, sharing, and finding data. When other business tools are integrated with your cloud-based accounting tools, information can be easily shared among each, further automating your tasks and processes.

Lowered Costs

The points above demonstrate how cloud-based accounting can streamline and improve the efficiency of accounting-related workflows. With a cloud-based system, upfront hardware costs such as servers and storage are removed, along with software licenses and maintenance; the sole cost is for the ongoing service. Flexibility means reducing the time to complete workflows, and, coupled with improved productivity and collaboration, this also reduces labor costs.

In short, cloud-based accounting has a lot to offer today’s business owner; it’s not just for large corporations. It’s easily accessible by businesses of any size, and can provide substantial benefits.

Want to learn more about the cloud-based accounting we do for our clients, or what a partnership with KYB might look like? Contact us here to talk to someone on our team.

Contact Keeping Your Balance

Topics: Bookkeeping & Accounting, Virtual Accounting