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Cloud accounting benefits for small business

There are many benefits to be gained from using cloud accounting software to manage your small business finances.

Cloud accounting software is software that can be accessed online, from wherever you have access to the internet. Unlike desktop accounting software, data is stored on an external server, which means you’re not restricted to using a particular computer to access your accounts.

The ability to gain an up to date picture of your accounts wherever you are and the ease of sharing data are likely to be two of the most appealing benefits for small business owners, however, increased convenience isn’t the only benefit.

Cloud accounting is convenient

Whether you’re using spreadsheets to keep financial records or have installed software like Sage or QuickBooks Desktop on your computer, moving your accounts to the cloud will save you time and money.

One of the biggest benefits of cloud accounting software is your accounts are updated in real-time, so you’ll instantly be able to gain an up to date picture of your accounts. You’ll also save time by not having to troubleshoot complex formulas in your spreadsheets, as the software takes care of the calculation for you.

As cloud accounting software is accessible online, it’s easy to share data with other people or programs. Popular packages like Freeagent, QuickBooks and Xero even allow you to connect your accounts to other software so they can be updated automatically when you make a sale or purchase an item for your company.

Another benefit of cloud accounting software is low monthly payments that make it easier to manage your finances and you can even sign up for a free trial before you commit.

Cloud accounting is secure

A key concern for small business owners before moving their accounts to the cloud is data security, however, cloud storage may actually be more secure than traditional data storage.

Storing data on your computer’s hard drive or a backup on an external device means if that is destroyed, you lose your data. As data for cloud accounting software is stored off-site and regularly backed up, your data is stored in a much more secure environment.

Unlike desktop accounting packages that are only updated when a new version of the software is released, cloud accounting software is regularly updated to ensure your data is protected against any cyber security threats.

Cloud accounting is the future

As more and more business functions move online, it’s no surprise accounting software has also moved to the cloud. Software will continue to evolve to make business processes easier to manage and desktop packages will soon be left behind.

HMRC has announced that all businesses will soon need to provide digital records of their accounts when they submit tax returns, so why not get a headstart and move your accounts to the cloud now?

Cobia Accounting is experienced in helping small businesses save time, money and hassle by moving their accounts to the cloud and setting them up as a limited company.