Cloud accounting is becoming increasingly popular and that’s why many businesses and especially startups are now using it. Before we dig deeper into why cloud account is a boon for startups, it’s important to learn what exactly it is, who needs it and why.
What’s cloud and what is cloud accounting?
Have you ever purchased something online or booked air tickets and movie tickets online? If yes, then you have used the cloud to access your data. The information you wanted wasn’t available in physical form, you accessed it on the cloud. That’s why you don’t need a physical storage because you can access the data anytime and anywhere from any compatible device.
Cloud accounting works in the same way. You put your data into a cloud-based accounting software and you can access it whenever and wherever you need. All you need is an internet connection to access the real-time data.
The benefits of cloud accounting
The data you put in the system remains up to date. And if you are choosing the right platform, you can be sure that you will receive regular updates that make the platform better. Unlike traditional PC software, a cloud accounting software can work on any computer.
Offline data sharing is not only troublesome, but it is also not a safe way to carry your confidential data. Cloud accounting gives you an added layer of protection, so your customer’s data stays safe and within reach. One more benefit of a cloud accounting software is that it is inexpensive when compared with traditional accounting software.
Cloud accounting means your business will always stay connected to your accounts and data. There are some applications that allow users to choose add-ons and make the entire ecosystem more scalable and cost-effective. Cloud computing is easy to use and that’s why many small businesses are using it.
It is easy to manage and maintain and the best thing is businesses don’t need a dedicated IT support as there’s no need to download or install anything. Companies that use cloud computing pay for the services they take.
Traditional accounting software solutions are time-consuming and managing accounts can be tedious. They require more time and they aren’t easy to work with. They need more storage space, and as soon as you upgrade to a new one, you have to carry all the data with yourself which is not safe. This doesn’t add any value to your business and makes the accounting process a boring part of your business. With cloud accounting software, companies can save money and time.
Many cloud accounting software are available today and some of them are incredibly fast, budget-friendly, and efficient. Zipbooks, Quickbooks, and Xero are some of the leading cloud accounting software and each of them works in the same way, but they all offer different features for various business needs. Here’s a very comprehensive comparison highlighting the best parts and features of these leading cloud account software. Check all the features and pricing details in this Xero vs. Quickbooks online comparison.
Cloud accounting and startups
For startups, having a clear idea of their current financial situation is a must and cloud accounting gives you that clear picture in real time. For small teams, getting multi-user access makes it easy to collaborate online. Automatic updates on cloud keep the platform safe and are easy to manage. With the cloud, you don’t need to install anything on your systems and there is no need to take backup on hard drives.
One important factor that plays a major role in determining the success of your business is cost. With a cloud accounting software, you can expect reduced overhead as you don’t have to spend money on maintenance, system upgrades, or administration costs. Everything is managed by cloud service providers so you can spend your time on things that matter the most to your business.
The beauty of cloud accounting software is the flexibility. You can manage your accounts from home, office and nearly anywhere. You can be confident that you always have a clear idea of your company’s financial status. Smart solutions like reports can help you keep a track of how your business is doing. It will help you make smart decisions backed by data and not assumptions.