The benefits of cloud-based accounting software

We at Spring are paperless.

And we advocate our clients to be too.

Xero and Coconut are our preferred cloud accounting systems and we witness the benefits they bring our clients (both big and small) on a day-to-day basis.

By using a cloud-based system your records are held online and you access them by logging into the software from an internet browser.

In a world of digitisation, there are some huge advantages to using cloud-based software for your bookkeeping. Is it worth making the switch? We delve deeper to provide you with a handy summary—and if the answer is yes for your business, we can help make the switch across from manual bookkeeping quick and easy.  

Save time and money

Whether you complete the bookkeeping in-house or outsource, time is money. With cloud accounting software, business owners remove the need to contend with time-consuming software installation, backups, and other administrative tasks, because you’re accessing the software over the internet. You don’t need to buy or manage servers or other IT infrastructure to run your accounting software. You don’t have to perform regular backups of important financial data, because your accounting provider automatically does that for you.  

The provider updates the accounting software to include changes to tax rates and accounting rules and adds new features. So, you don’t need to spend time regularly upgrading to the latest version.

The software uses automation to reduce manual work. Using opening banking it can automatically import bank and credit card transactions. It will also produce recurring invoices and suggest transaction categorisation.

Less time spent on administration frees time to spend on productive activities that grow your business.

Paper-free/eco-friendly

Traditionally accounting systems entailed paperwork—lots of it.

With the digital tools we use it is no longer necessary to store paper records or manually distribute paper reports to stakeholders.

Ask your suppliers to send you electronic invoices and you can use an app on your phone to scan in paper receipts so that you can import them direct into your software.

Emailing your invoices to clients eliminates printing and postage costs and fast-tracks payment turnarounds.

Cutting down on paper also reduces your environmental impact.

Access anywhere, anytime

Cloud-based systems free you from the confines of your office. Authorised users can log in from any location, 24/7, through a web browser or mobile app.

They can approve payments or send invoices without having to wait until they’re back in the office. All data is stored in the same cloud-based system so it’s easier to share electronic documents among staff who are working at home or on the road.

Decision making in real-time

Managing the business accounting using spreadsheets or paper-based processes makes it difficult to get a quick, accurate, up-to-date of view of business performance. As a result, you may not spot issues early enough to prevent them from developing into bigger problems.

Cloud accounting systems enable you and your accountant to have access to the most current financial information. Instead of waiting for historical reports that are weeks or months out of date, users always have an up-to-date view of the company’s current financial position and can analyse and advise on it accordingly. This enables you to gain new insights and quickly identify trends that impact the business.

Whether you’re a growing or established business moving to a cloud-based accounting software system can increase efficiency and provide real-time visibility into financial performance.

Ready to digitise but not sure where to start? Get in touch, we can run through the best tools for your business, get you up and running and provide training if you’d like to undertake some of the bookkeeping yourself.

 We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.