Every business survives or fails because of whether it is staying in the red or black. It is hard to keep any kind of business afloat if you are spending more then you are taking in, that is an easy statement to make.
But what if you aren’t really sure how your business is doing? Sure, you have cash in the bank and happy customers, but are you really making a profit? This is the all important question that can only be answered with a good accounting system.
These days, more and more, that accounting system will be online accounting or cloud accounting. There is a good reason why, in fact we can name several right off the bat.
Cloud or Online Accounting Reduces Paperwork
Since online accounting is a process of using computer software and the internet to keep track of income and expenses, the first change most businesses see is the reduction in paperwork. The reason is simple.
When you utilize the cloud you will quickly find that emailed invoices and applications that create paperless workflow management will simplify your own work. If invoices not only arrive electronically, but are approved and paid that way, it instantly lowers the paperwork that needs to be done. You don’t need to recall where the receipt for that bill has been filed and best of all your accounting can be updated in real time. So you always know where you stand, financially.
All of this is done easily with cloud accounting because everyone who needs access has it, making the paperwork trail easy to follow since it is all online. So switching to an online accounting system will not only make you smarter, it will also make your company a greener one.
Financial Information at Your Fingertips
The other great advantage to using this type of accounting software has to be how you can access it anytime and anywhere. What business owner hasn’t sat up late at night sometime, wondering if they are in the black this month? For small business owners in particular, the ability to go online from home and check out your finances gives great peace of mind.
If you have the kind of business that requires you to travel a great deal, having online accounting in place means you never have to wonder if that check went out or that bill was paid. You can access your accounting information 24/7 and know exactly what is happening financially with your business.
Get The Truth About Your Cashflow
Because cloud software allows you to see your accounting information in real time, you will always know exactly where you are regarding your company cashflow. Sure, that payment is due today from your biggest buyer, but did it come in on time? Knowing that you have the cash on hand to make timely payments is a big question for anyone who runs or owns a small business.
Having your accounting in the cloud means you can always see the real information today, and what it really means. Beyond seeing your bank account, seeing your accounting page means you know if you truly are where you need to be financially at any time, day or night.
Your Financial Information is Protected
Often when people find out about cloud or online accounting, they worry that doing this will leave them open to fraud or some other form of embezzlement. But the reality is just the opposite. When you put your financial information in the cloud, it is safer than it is on your own computer. This is because the servers that handle this type of information have invested in state of the art protection for all of their clients. They have to, because it is in their best interests to offer the most secure servers for their clients.
This kind of security is expensive, if you are just one company, but affordable when the cost is spread out amongst all the companies on the servers they maintain. So your financial information, when it is in the cloud, is safer then ever.
The bottom line
With all these great reasons for you to make online accounting your accounting system, what is holding you back? When it comes to ease of use, up to date information and greater security, online accounting gives you one more tool to create a successful business.