Can you access updated and real-time accounting information anywhere and at any time? If not, you should consider adopting a cloud-based accounting software for your business that is affordable, helps you make informed decisions, and manage your business. Businesses that adopt technology are more competitive, and successful and remain ahead of their competitors.
Cloud accounting also known as online accounting has all capabilities of desktop accounting software only that it can be accessed through the internet hosted on servers. Accounting information can be accessed in real-time from anywhere in the globe. Cloud accounting software can update financial information and financial reports, thus giving SMEs a clear and accurate position of their books.
Benefits of Cloud Accounting to SMEs
Effective Inventory management
Inventory is easy to monitor and maintain knowing what is coming in and going out. Physical Stocks and inventory are easy to manage and know exactly at what time to replenish or order. Cloud accounting will also help decision-makers know the right quantities of inventory at a particular time and keep a track of more accurate stock remotely.
Accept payments
There has been an increase in the use of digital currency due to a huge number of transactions happening online. Cloud accounting platforms are available 24/7 and don’t restrict businesses to have a physical credit card to receive payment.
Real-time bank information
It’s possible to access your bank transactions in real-time provided you have internet connection. This will help your business make current and future decisions.
Pay bills on time when due
This can be done through a tablet or a smartphone when invoices are due or received. Also, cloud accounting reduces paperwork. It helps in payables optimization and the reduction of errors during payment. Fraudulent activities are also greatly reduced and less manpower needed.
Bank reconciliation
Manual bank reconciliation can be tedious and overwhelming prone to errors and time costing. Cloud accounting software ensures the work is simplified and accurate and that the transactions entered into the accounting system match with the transactions in the bank statement and the bank account. This helps the business owner to have a clear picture of the business performance.
Live bank feed
Transactions can be downloaded automatically to the bank and uploaded into the accounting system. Live bank feed gives businesses up-to-date information about their business performance. This feature will help your business avoid making mistakes, especially where the data is entered manually. It also helps the business to closely monitor the money coming in and going out of the business at any given moment.
Multi-currency capabilities
Your business can trade in multiple and foreign currencies hence facilitating international trade of buying and selling of goods and services. No worries about which part of the globe your business is located in. An example of Xero accounting software has over 160 currencies with multi-currency accounting. It’s possible to perform the following:
- Send invoices and do purchases in different currencies
- Bank accounts can be set up in other currencies
- Automate exchange rates
Updates
Cloud accounting software is regularly upgraded by the developer, unlike desktop software. This will help most SMEs with the cost of upgrading and Moreso give them executive reports.
Are you an SME looking to streamline your accounting and finance-related services? Reach out to Ronalds LLP and meet our experienced team that will help your business maximize and reach its full potential.
Related: What are the benefits of IFRS implementation to a company?
