For businesses to keep themselves profitable in the long run, they have to be updated with the financial statements. Cloud accounting has made this much easier in the recent times. Cloud Accounting is similar to traditional accounting software except the accounting software is installed on the remote servers rather than on the individual desktops in the companies.
Cloud accounting covers all the activities which are even done by the traditional accounting software like General Ledger Maintenance, Bank Reconciliation Statements, Balance Sheet Generation and review, Activities related to Accounts Payable and Receivables, and many more.The advantages of cloud accounting are that the businesses have to incur lesser costs in installing the software and maintaining the individual systems where the accounting software is installed.
Above all, not only the finance team but any key person related to the business can also access the financial data from any location and on any device. Cloud Accounting can be a big boon for small businesses as they have to invest less cost in the development of a proper accounting system. As these organizations have less money to spend, and further they need to have a proper track record of all the present cash inflows and outflows to meet their financial obligations.
With the onset of cloud accounting, the small businesses need notspendmoney on the hiring of expert professional to look after their accounts as there is not a requirement of a full-time accountant to prepare their year-end reports. With the arrival of cloud accounting, the outsourcing of accounts and bookkeeping is becoming very popular.
The outsourced bookkeeping has assisted the business owners in expanding their business as they can now invest more time and energy for the success of the business. As the companies hire expert financial accountants, hence, business owners need not worry about the people who will handle their accounts and also its accuracy. Outsourcing helps the organizations to reduce their costs and help them to focus on their core competencies and work on their weaknesses to gain the competitive advantage.
QuickBooks and Xero revolutionized the accounting world through their cloud accounting softwares and are currently serving a large number of customers who have small businesses. QuickBooks Online Accountant enables the accountant and bookkeepers to manage their client’s accounts with a single login. It was not possible with traditional accounting software as the accountant required separate login details for different clients. Xero Accounting provides the solution for different business types ranging from small businesses to domains like legal and tourism.
Cloud Accounting can gain prominence as organizations focus on reducing costs and enable them to focus on their core competencies. It can also be advantageous for small businesses to emphasize on the expansion of their business and increase their market share as it lowers the cost of installation of the software on individual desktops for the company’s employees and henceforth can prove as a backbone for accounting.