Gone are the days of accounting using desktop software or spreadsheets. Those methods are outdated and can do more harm than good for your company. Accounting practices have come a long way thanks to the evolution of technology.
Whether you currently use a product like Quickbooks for online accounting or you’re starting to explore the benefits of moving to an online solution, our team at Founder’s CPA is here to help.
What is cloud accounting?
Cloud accounting, also known as online accounting, is the practice of storing business books online. It keeps track of things like income, expenses, assets and liabilities. Rather than storing the data directly to a desktop, it’s stored on a virtual network of servers.
Using online accounting offers a host of advantages over traditional accounting methods. Here are only some to consider if you haven’t yet made the switch.
Five benefits of online accounting
Improved security
Storing sensitive information in the cloud might seem risky, but in reality, this can improve your security in a multitude of ways. Cloud suppliers enforce multiple levels of security such as advanced encryption and access control. This allows for only authorized users to access your sensitive data. Plus, this data is automatically backed up so you don’t need to worry about losing your important financial records. In the case that an employee loses a computer or office equipment becomes damaged, all of your data stays secure.
Scalability
One of the most appealing benefits of using online accounting is how scalable it makes this area of the company. Using static spreadsheets or desktop-based solutions may be suitable for a short period, but as the business grows, it quickly becomes unmanageable. The last thing you want to do is invest time, money and energy into a system only to outgrow it in a year. This is where online accounting is beneficial as you can add features as the business grows.
Improved Compliance
Platforms like Quickbooks online for accounting aid private and public companies through accurate financial statements, quarterly tax estimates and annual tax returns. As a result, business owners can steer clear of under-reporting tax liability that could result in fines or audits. The automation of international and domestic tax calculations also helps with compliance and some software can even automate revenue recognition.
One source of truth
Accuracy is key when it comes to your financial data. With multiple spreadsheets floating around, it can be hard to know what is the most updated file. Cloud accounting means there’s only one version of your records and makes it significantly easier to trust the data.
Customization
All businesses are unique so it’s important to find a solution that’s customizable to the needs of your organization. Many online solutions allow you to tailor the process and workflows to better align with your goals. For example, you can build personalized dashboards for certain roles with particular metrics and other information.
Working With Founder's CPA
If you’re looking to learn more about accounting best practices or the benefits of working with an expert, we’re here to help! Contact us at Founder’s CPA today to see how our professionals can assist you with accounting, tax, and CFO services.
