Role of Cloud Accounting in Strategic Business Financial Management
Modern finance and accounting often sheds light on cloud technology and how it revolutionized the industry today. However, for most business owners, cloud accounting and financial management inarguably go hand-in-hand in pushing the firm’s competencies.
Amid the intricacies it poses, having impeccable financial records is not exclusive to the use of cloud technology. The reality is that getting your critical business numbers in order means validating the financial records you have in the cloud.
A Comprehensive Look between Cloud Accounting and Financial Management
The ball starts rolling when you understand the relationship of cloud accounting and strategic business financial management.
In Business Intelligence
Take business intelligence, for example.
Business intelligence is crucial for startup businesses and SMEs struggling to keep their profits up. The specific methods involved in this strategy enable you to probe deeper into your financial records and provide a forecast on the possible turnout of your critical business numbers. In the long run, business intelligence helps you have a better view of how to manage your business cash flow and where to place your corporate investments.
In Internal Audit
Internal auditing is another interesting aspect that explains why cloud accounting and strategic business financial management go hand-in-hand.
For growing companies with increased complexities in their finances, sound financial management practices help them keep a close eye on the overall financial position of the business. Internal audits provide an objective and comprehensive view of how the business is performing through the use of the financial records stored in the cloud.
In Quality Assurance
Quality assurance also plays a major role in strategic business financial management. Most companies use information provided by cloud accounting tools like MYOB, Xero and QuickBooks to get their financial records in order. But to ensure that everything is right on track, strict quality assurance policies are also essential. These policies provide guarantee that businesses are making the most from the records generated from the cloud.
In Tax Planning
Last but not the least is tax planning. Cloud accounting tools help your business go a long way when it comes to tax compliance. Although you can file your taxes digitally with the help of these tools, there’s no substitute for having a professional tax adviser to help reduce your tax liabilities.
Small business cloud accounting significantly improves the way modern businesses like yours do finance and accounting – be it in assisting you in filing taxes, creating financial statements and automating bank feeds. But here’s something better: harnessing the power cloud accounting and strategic financial management to leverage the technology and expert advice from finance and accounting professionals.
This post was first published 4 August 2014 and edited 3 November 2020.
Edited by: Maria Katrina dela Cruz