Top 11 Benefits of Cloud-Based Accounting and Real-Time Data
If you haven’t converted to cloud-based accounting, COVID-19 likely prompted you to consider making the switch. With more and more businesses and industries operating virtually, cloud access and real-time data have become more important than ever to make the best business decisions possible in uncertain times. With so much up in the air, you don’t want to be caught with a static accounting system that cannot keep up and provide the answers you need.
If you’re on the fence, we’ve put together the top 11 benefits of cloud-based accounting and the real-time data it provides.
- Drill down on business performance. Real-time data through cloud-based accounting allows you to drill down on the critical components of your business’s performance. You can get global or granular on factors such as location, project, customer, vendor or department and see how each part impacts your business in real time. Additionally, you can use snapshots of your cash flow, revenue, expenses and more to see how they compare year over year and how they measure up to your goals for this year.
- Make better data-driven, real-time decisions. You’ve likely experienced times when last year’s or even last month’s data is irrelevant during these uncertain times. With real-time data, you can clearly see what’s holding you back now or what’s working and adjust accordingly. Without the real, hard data, these decisions can feel like a guessing game with a wait-and-see outcome, which most businesses cannot afford right now.
- Make accurate predictions and forecast This accurate, up-to-date data allows you to feel more confident in forecasting the future of your business. You have the facts in front of you to make more strategic predictions over the course of the year. Through the real-time data and historical facts, you can assess past performance, identify trends, and set goals and plans, adjusting as needed along the way.
- Automate processes. More and more, businesses are focused on automation, and there’s no better place to start than with your accounting. With cloud-based solutions, you can create automated workflows that handle much of the busy work for you, such as invoicing and paying vendors. This all funnels back into your real-time data so you can stay on top of your revenue and expenses.
- Mitigate fraud and reduce errors. Mistakes and fraudulent activity can be more quickly and easily identified when you can see the transactions in real-time. The simplification of the software means less memorization of accounting practices, formulas and Excel shortcuts – all of which can contribute to errors. And the automatic reconciliation can help you detect fraud early. The ability to act timely on errors and fraud can save your business big in the long run.
- Simplify your reporting and EOY. Have you ever scrambled when a stakeholder asked for an up-to-date report on your business? Cloud-based accounting allows you to present an accurate, timely report in no time, simplifying the process for you and your stakeholders. Additionally, you avoid the end-of-year rush because you’ve been entering your information and tracking all year long, so tax bills aren’t as much of a surprise.
- Simplify GST compliance. You know tracking and monitoring general sales tax can be a challenge. Cloud-based accounting tracks and applies GST automatically for you and allows you to pull a quick report when you’re ready to file your GST returns.
- Get access from anywhere. One of the best benefits of cloud-based accounting is that you can access your data from anywhere at any time. In the age of COVID-19 and working from home, this is especially beneficial for you and your team so everyone can stay on track and on task.
- Collaborate with your accountant. Cloud-based accounting has simplified the transfer process of client information to accountants and saved both sides time and energy in equal measure. Gone are the days of having to download everything to a CD or flash drive and deliver it to your accountant. Now, you can collaborate virtually and trust you’re both on the same page.
- Simplify your technology. Cloud-based accounting eliminates hard downloads across multiple computers and saves your IT department (or you) the headache of making sure everyone is up to date across the company. Thanks to online hosting, IT doesn’t have to worry about updating the software either, so they can focus on other projects.
- Get the tech support you need. Most cloud-based accounting platforms offer regular tech support to help you any hour of the day. You’ll also have access to forums of thousands of other users so you can discuss issues and share best practices. Keeping your program up and running and optimized contributes to better real-time data.
For assistance with choosing the right cloud-based accounting platform for your business, contact us today.
Frank Granatino, CPA, of Goering & Granatino is a graduate of Missouri State and a CPA, but, moreover, he is a problem solver who uses his deep knowledge and understanding of the industry to find ways to do things faster and more efficiently for his clients. From creating customized reporting templates to spending time with his clients to educate them on how best to organize their businesses, Frank helps companies perform at their best. Often, we have clients comment that Frank feels like a member of their teams. He gets in there, rolls up his sleeves and makes things happen.