The Benefits Of Online Accounting

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 Those methods are outdated and can do more harm than good for your company.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.

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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.

Post by Curt Mastio
Jun 7, 2024 9:17:35 AM

Curt Mastio started Founder’s CPA in 2017 and currently serves as the Managing Partner of the firm. After obtaining both his Bachelor’s and Master’s degrees in accounting from the University of Illinois in Urbana-Champaign Curt started his career in Big Four public accounting. Shortly thereafter Curt served as the Chief Financial Officer of Storage Squad began his stint as an Adjunct Instructor at Northwestern University’s Farley Center for Entrepreneurship and has been teaching Accounting & Finance to undergraduate students for 6+ years. In his current role Curt oversees strategy, operations, and business development at Founder’s CPA. Further, Curt has experience working directly with 200+ startups and small businesses providing accounting, tax, and outsourced CFO services. His industry expertise lies in the SaaS, Blockchain, Marketplace, and Fintech industries. He has served as a key advisor working directly with startups that range from pre-revenue to companies generating over $30 million dollars a year in revenue. Lastly, he serves a key role working directly with the firm’s clients that have collectively raised over $200 million in venture capital funding to date. Curt is also an active advisor, mentor, and investor in the startup ecosystem. He has facilitated numerous workshops, webinars, and presentations to incubators and other startup-centric organizations. He is also an active mentor for Techstars in both Chicago and Iowa. Outside of his daily professional duties Curt is actively involved with Beat the Streets Chicago and was a founding member of its Young Professionals Board. His efforts in both leadership and community involvement were recognized when he was awarded the Illinois CPA Society’s Outstanding Young Professional Leadership Award in 2020. He was also a panelist at their annual conference in 2022 where he spoke about his experiences starting and operating a public accounting firm. He maintains an active Certified Public Accountant designation that he obtained in 2014. Outside of work, Curt can be found spending time with his friends & family including his dog Rufus. His hobbies include golf, boating, cooking, reading, and attending sporting events & concerts.