As an SME owner, you automatically become the expert, as you deal with transactions, overseeing different departments and making decisions on a daily basis.
When it comes to making financial decisions, however, it becomes more tricky and complicated – and accounting mistakes are what you should avoid to preserve the lifeline of your company.With the advent of cloud technology, more and more SMEs are enjoying the benefits of cloud accounting like keeping your small business's financial records accurate and updated and helping you avoid dreaded accounting mistakes.
To purchase a bookkeeping software could be quite costly, as it needs to be upgraded on a regular basis. However, when the software becomes a part of your subscription to your chosen cloud accounting tool, you could improve your cash flow or use it for more profitable ventures. Also, cloud accounting tools require minimal supervision while staying on top of your books.
- Financial information security
With the notion of your records being “up in the cloud,” you might hesitate regarding the security of your financial information. However, isn’t it the same hesitation you would experience if you were to leave your information in paper form in a locked vault or room? Using that analogy, keeping your records on cloud accounting platforms stands a better chance of being more protected as your data gets stored on remote servers with advanced security and back-up features.
- Data accessibility
Traveling abroad for a business trip and need to get pertinent financial data that are physically inaccessible? This problem is eliminated easily by the cloud, as it allows you to easily access your data – anytime, anywhere. As a bonus, you can always pull up the most updated information, as it can be demanded from an investors’ meeting or a sales pitch.
- Cash flow management features
It is a must that all expenses should be recorded for these to be deducted from your total income during tax time to maintain the accuracy of your profitability percentage; it could be very easy not to log the smallest of expenses. Aside from these, you may have already forgotten to issue invoices that could greatly affect your receivables. With these problems combined, you are on your way to accounting mishaps. With cloud accounting solutions, you can integrate various financial systems into your tool, thus making usually time-consuming and tedious accounting operations done faster and more accurately.
- Added financial knowledge for a smoother collaboration with your adviser
Having access to your chosen cloud accounting tool not only helps you in dealing with financial tasks, but also educates you. Have you had a situation wherein you had a difficult time keeping up with all the financial jargon you hear from your bookkeeper, accountant, or adviser? Be in the know about your financial data and actually discuss them with your adviser as you pull up the same data presented and/or interpreted by your cloud accounting tool.
D&V believes that you could benefit a lot from using cloud accounting services. For more information on our services, such as Xero, feel free to contact us!