QuickBooks Online is an industry-leading cloud-based solution for any small business. Learn more about cloud-based accounting software below.
What is cloud-based accounting software?
Cloud-based accounting software is based in the “cloud” rather than installed on your desktop or manually maintained in ledgers and journals. The software for cloud accounting is hosted on a remote server instead of a server on your business’ premises. Your accounting data is sent to the cloud, processed on the remote server, and then sent back for you to access.
None of the accounting processes occur on your desktop. The application functions entirely in the cloud. This frees your business from installing and maintaining software on multiple computers throughout your company. Your accounting or HR department can access the exact same version of the software as you and access real-time data within your account.
Benefits of cloud accounting
Choosing a cloud-based accounting software is the right step in updating your business to the 21st century. With more and more teams and businesses becoming a remote-workforce, cloud-based software is a step in the right direction.
Cloud accounting has several benefits, such as:
Secure Stored in the Cloud: Cloud accounting technology can provide a more secure method of storing financial information. Data is routinely backed up to servers in multiple locations and there are no physical hard drives or computers containing sensitive data that can be stolen.
Save time with automation: utilize your banking information and categorize transactions. Sync with popular apps and easily snap photos of your receipts.
Pay as You Grow: Small businesses often experience growing pains, which makes choosing software with future growth in mind a priority for many. Cloud accounting software allows businesses to purchase what they need and increase their spend as they grow. This includes adding more storage space, users, and more advanced features.
Multi-User Access: Once you reach a point where your business is looking to outsource specific tasks, using cloud accounting can help scale in a cost-effective and controlled manner. The multi-user feature of cloud accounting means you can give different people access to your financial records and bookkeeping process, which they can access remotely. The multi-user feature makes for quick communication, team collaboration and less back and forth.
Real-Time Transactions: With cloud accounting in place, you can quickly spot a gap in cash flow or see if customers are abusing your extension of credit. Business owners who simply place all their receipts in a drawer to deal with at a later date might not catch a potential issue until it’s too late.
Automate your Business: Several aspects of your day-to-day business operations, like managing inventory, invoices, payroll, and even portions of your customer relations management can all be tied into your cloud accounting software. Save your hard-earned money – no separate software is needed.
Integrate your Favourite Apps: The great thing about cloud accounting software is that third-party systems integrate seamlessly with QuickBooks Online. If your company uses an ‘actual-minutes worked’ type of format, your time tracking software can integrate with your accounting software to maintain accurate payroll records. You can basically build the accounting software suite of tools with your favourite apps that apply to your specific business.
Simplify Tax Compliance: You must remain compliant with the CRA or you can face stiff penalties. Cloud accounting software helps by showing you things like how much tax you owe (even down to specific invoices) or how much you’ve paid overtime on a specific tax. Cloud accounting software like QuickBooks makes it much easier to compile the information you need to file a successful remittance
Accuracy: The accuracy of your numbers is crucial. There’s always the chance of a transposed number or erroneous math in manual entry accounting, but cloud accounting software does the calculations for you. And the software also maintains other necessary information, like the amount of inventory on hand, and which vendors you use for which products. Need to mail something to a client? Even your client’s addresses are maintained in QuickBooks Online for easy access when the need arises.
Is cloud accounting right for your business?
From the smallest downtown laundromat to the largest Fortune 500 company, your business can benefit from implementing cloud accounting. Whether you have one employee or 1,000 – even if you are the only employee – cloud accounting software like QuickBooks can help you manage your payroll expenses, tax remittances and other business expenses.
As a Scotiabank customer you can get an exclusive discount on your QuickBooks Online subscription.
Ready to dive in? Desktop accounting applications might be on the way out, so transitioning to cloud accounting is a smart choice now. 5.6 million businesses use QuickBooks. Join them today to help your business thrive.
This article was first published on QuickBooks’ Canada Blog. The original article can be found HERE.
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