Traditional accounting has been gradually replaced by online accounting services. Up to this writing, cloud technology continues to revolutionize the industry through the potentials it brings to the table.
Business owners who have just been introduced to the cloud are typically eager to know more about cloud accounting. This is a normal reaction when you realize the potentials of cloud technology in reducing your business costs and making your accounting operations easier.
But are you really prepared to take on cloud accounting?
Make a smooth transition into the cloud by knowing the latest trends in using cloud technology for your accounting operations:
Integration with other systems
There are a lot of facets in your business operations that may require the assistance of online tools. Processing sales and inventories is among these. One of the recent developments in finance and accounting is the integration of sales and inventory management tools with your cloud accounting system. This way, you can easily input the results of your sales and inventory into your books.
Invoicing and Expense Tracking
Online accounting systems include invoicing features to keep up with their payables and receivables. Cloud programs now allow invoice tracking and customization of templates for your company’s branding. For software such as Xero, you can create invoices in different languages, which makes it more convenient for your foreign customers.
Aside from automatic matching of transactions, it also promotes doing paperless transactions. With less consumption of paper in your daily accounting task, your process becomes more simplified and digitized.
Not all business owners who are using cloud accounting are familiar with cloud technology. For this reason, one of the top trends in finance and accounting today are cloud accounting systems that are easy to use. User-friendly functionalities in cloud accounting tools cut the time spent on tinkering with this accounting software.
Sharing of Files
Easier collaboration comes with the ability to share files and collaborate easily with your accountant. As such, one of the “it” factors in finance and accounting today is the efficient sharing of files with their accountants. The cloud accounting tool Xero makes sharing of files easier by using the Excel format so that clients can easily upload their files on the platform.
Reports are crucial parts of making sound business decisions. The insights and analytics provided by your accountants reflect how your cash flow is running and identifies if there is enough working capital to make the business stay operational.
Among the many types of financial reports that an online accounting service provides are budgeting, sales, forecasts, costings, and others. With these accurate data, confident decision making for CFOs is possible.
Automated Bank Feeds
In the past, reconciling your bank documents with your invoices means manually inputting data to make sure that both accounts are matched. The popular practice today calls for the automated reconciliation of bank feeds through the use of cloud accounting tools. MYOB, Xero and QuickBooks all have this feature.
Convenience through Mobiles
One of the advantages of cloud technology is its deployment into mobile phones.
Cloud accounting for small business calls for a more convenient approach in organizing and updating the books. Software such as Xero and QuickBooks offers mobile applications to help you access your business even when you’re on the go.
A number of American small businesses have transactions with offshore suppliers. In some instances, they might need to issue checks in foreign currencies or convert cash to a different currency. To make this easier, some cloud accounting tools such as Xero, MYOB, and QuickBooks offer multi-currency functions. This enables business owners to transact with foreign clients and suppliers more efficiently.
To learn more about your ideal cloud accounting software, you can access our Xero and QuickBooks infographic here.
Patronizing online accounting services brings a wealth of convenience at your fingertips. But to make the benefits of cloud technology work to your advantage, you need to keep up with the latest on cloud accounting.
Learn why cloud-based accounting is the ideal and innovative choice for small-and-medium-sized businesses, what you should look for when it comes to cloud-based accounting software, and which cloud-based accounting software is best for your business’ specific needs. Download our free "Cloud Solutions for Business Owners" white paper below:
First published on 2014 July 17; Last updated on 2020 May 12