Gary Epstein | Managing Director | EasyBiz Technologies | mail me |
If a business suddenly had no access to its business documents and financial records, the consequences would be severely felt. And if the company suffered a cyberattack, it could be devastating.
These are just two reasons why cloud computing has become so important, and why moving to online accounting can genuinely help small- to medium-sized enterprises (SMEs).
I outline the benefits of cloud computing and how it can support SMEs in the everyday running of their businesses.
It is essential for small-business-owners to have access to the latest data and insights into key business functions. From sales and invoices to reports and income statements, cloud accounting software allows businesses to do it all. They can store and access data, utilise inbuilt tools and features from anywhere at any time, and benefit from automated bank feeds reconciliations, expense claim tracking, inventory control, multi-currency processing, and more.
Traditional versus online
Compared with traditional accounting practices, cloud accounting software allows businesses to reduce the number of errors, increase efficiency and productivity and have a holistic and thorough understanding of their business.
It creates the ability to access and collaborate on key accounting functions, from anywhere in the world and at any time. Overall, the insight, reporting and value it offers is unparalleled, as well as the speed and efficiency of access for all involved.
Key benefits of cloud accounting:
- Having a clear overview of the business’ financial position, in real-time.
- Multi-user access makes it easy to collaborate online with team members and advisors.
- Automatic updates free up time to do more important things.
- Everything is backed up automatically. Updates are free and instantly available.
- Up-front business costs are reduced – version upgrades, maintenance, system administration costs and server failures are no longer issues. Instead, these are managed by the cloud service provider.
What about security?
Cloud-based solutions take care of security and privacy, and allow for data to be stored safely and securely in the cloud, with various encryption measures to ensure data is protected.
COVID-19 requirements
In the COVID-19 and post-COVID-19 landscape, a remote and distributed workforce is required. Cloud accounting makes this possible, without losing the benefit of collaboration across the business.
Business on-the-go
The beauty of cloud accounting software is the flexibility it gives business-owners to run their business from anywhere – work, home or on-the-go, and be confident that they have an up-to-date picture of how the business is doing at all times.
By receiving and providing data on-the-go, business-owners can make better decisions. In a few clicks, they can answer questions such as ‘Has this customer paid?’ or ‘How many sales were made today?’ or ‘How much is needed to pay a supplier?’
Multiple users
A company can also save significant time by having multiple users who can access and update data at the same time. Rather than waiting for information, updating it, and then returning it, cloud accounting allows that to be done in an instant.
Visibility and accessibility
Cloud-based Accounting software offers more visibility of financial statements. It is not necessary to wait for statements to be emailed – these can be checked on the browser or app.
Also, it allows more control over the business, ensuring that transactions are done properly. This is where the true power of cloud accounting lies. Linking bank accounts to accounting software helps automate the bank reconciliation process, which saves a lot of time and minimises errors.
What is the best cloud accounting software?
The best cloud accounting software is one that is both simple and seamless for business-owners and their accountants.
As businesses across South Africa take steps to innovate, the right cloud accounting software helps align focus and decisions across the board. Overall, software that allows for access, agility and the ability to collaborate and report on key business metrics, within minutes, is of paramount importance for businesses as they grow and change.
What happens when a business grows?
All businesses want to grow. Cloud accounting software allows companies to upgrade their package once their accounting needs increase. In addition to adding users, more functions are available to help manage more complex functions.
Managing finances effectively is certainly one of the biggest concerns for any business, and especially for SMEs.
With cloud accounting, business-owners can spend less time worrying about the financial details of their business and concentrate on the aspects that made them start a company in the first place – the joy of creating products and services, serving the community, and becoming economically independent.
