Did you know that more than 35% of businesses in Europe are using cloud-based accounting solutions? But what exactly is cloud-based accounting and how could it help you to streamline your financial management processes?
An Introduction to Cloud Accounting
Also sometimes known as online accounting, cloud accounting is a financial information management system that takes place in the cloud. Cloud-based solutions offer the same functionalities that computer-based accounting has offered for many years. However, it also goes several steps further and offers additional security features and tools to help you better manage the finances of your SME whilst also saving you valuable time.
With cloud solutions, there’s no need to use a desktop application. Instead, you are always able to log in to a fully up-to-date online platform from any internet-enabled device. Additionally, advanced accounting platforms offer an open API that allows you to connect third party software to further streamline your business management processes.
The Benefits of Cloud Accounting for SMEs
There are numerous ways in which SMEs can benefit from implementing cloud solutions. Let’s explore a few here.
Optimal Accessibility and Efficiency
Cloud accounting software can make your life as a small business owner much simpler by allowing you to manage your finances at any time, from any location simply using a device that is connected to the internet. This can have a hugely positive impact on the overall efficiency of your small business, allowing you to save valuable time that you can then invest into other areas of your business that require your attention.
A Cost-Effective Financial Management Solution
Traditional methods of accounting can be extremely costly, particularly methods that require you to purchase expensive software that often isn’t even up to date. With cloud solutions, you are only required to pay for the services that you’re using, which will help you to better manage your finances and could enable you to save a significant amount of money.
Additionally, cloud-based accounting software is always kept fully up to date, so you have the option to utilise a variety of different tools to support the financial health of your SME.
Enhanced Security Measures
Traditional accounting methods often use data stored on computers or local servers, which are much more vulnerable to damage, loss or theft. However, cloud-based accounting services provide automatic backups and advanced security measures, which should give you extra confidence that your important financial data is safe and protected.
Integration and Scalability
Cloud-based accounting is extremely flexible and scalable, which means that it can adapt to your changing needs as your business grows or evolves. For example, it is easy to remove or add new functionalities, tools and features as and when required, or add new users as your team expands.
The flexibility of cloud accounting software is further seen in its ability to integrate with other software your SME might already be using, such as e-commerce platforms, stock management systems, and payment gateways. Integrating your software solutions will enable you to streamline your business operations, allow you to manage everything from a centralised location, and keep administration errors to a minimum.
How to Select and Implement a Cloud Accounting System
If you’re ready to make the switch to a cloud-based system, the good news is that the process doesn’t need to be confusing. Let’s take a look at some of the things you need to know before jumping in.
Understanding Your Business Needs
To ensure that you are making the right selection for your SME, it is important to first understand what you want your accountancy software to help you achieve. We also recommend seeking solutions that offer in-depth reporting and analytics, as this will help you to develop both a holistic and a granular understanding of the financial health of your business.
Identifying Valuable Tools
You need your accountancy solution to save you time and energy, so it is important that the solution you choose has an easy-to-navigate layout and tools that will optimise your workflow. Whether you need expense tracking tools, full integration capabilities or automated invoicing, there is a cloud solution ideally suited to your SME.
Integrating Cloud Accounting Solutions
Advanced cloud solutions can be integrated with a selection of other software solutions, including customer relationship systems, inventory management software, and project management tools.
Here at AK Tax, we’ve helped countless SMEs make the transition to cloud accounting solutions. Whether you’re looking for support in choosing the right cloud accounting platform, integrating your chosen platform into your existing systems or ongoing advice, contact us today to find out more about our services.
