Why Cloud Accounting?
The Cloud Journey
Over the last 10 years we have seen cloud accounting steadily shifting the landscape of finance away from the desktop and into the cloud.
For most SME’s this is a game changer.
Gone are the days of expensive software with limited users and connectivity that provide a complex way of providing company finances.
For me, this is the main benefit for using cloud accounting and cloud based workflows.
Allowing multiple users and 3rd party, industry specific apps, we can build advanced workflows and processes to ensure the data is collected, processed and reported in a fraction of the time it would usually take.
By minimising the amount of “touch points”, from manual entry and duplication we can increase efficiency by more than 60%.
Automation and Artificial Intelligence plays a huge part in this and it’s exciting to be part of this development, as we move further into the digital change over.
I regularly hear of business owners that are waiting over two months to receive important management information about their company. There is simply no reason for this when using cloud accounting.
You are now able to check the company finances daily, in the palm of your hand by using an app on any mobile device.
Allowing financial information to be shared and distributed to business owners, advisors and shareholders means that important business decisions can be made quickly and efficiently.
With a huge 82% of all businesses failing due to poor or negative cash flow management, it’s good to know that there are helpful ways to improve your financial visibility.
Cash is King
This well known saying rings true for all small businesses, but cloud accounting has a wealth of opportunities to take advantage of.
Automated credit control systems can chase your debts, via email, based on invoice due dates.
Cloud based payment services are available to collect payments on a regular basis or as “one offs” for single invoices.
Cash flow forecasting software can be linked to your cloud data to provide budget information and “real-time” cashflows that update daily at the touch of a button.
This data can also provide notifications when you hit a sales target or if your debtors value reaches a limit that is too high.
Banks and other lenders are starting to trust this software when looking at 3 to 5 year business plans as part of their due diligence process.
Cloud and Proud
Overall, small businesses and large enterprises can all benefit from understanding the trends of accounting solutions so they can cut costs, improve time management and be better prepared for future changes in accounting and business.
There are plenty of options out there, so just make sure you pick the best options for you and your business.