In order to prepare the financial statements, it is important to adhere to certain fundamental accounting concepts. Going Concern, unless there is evidence to the country, it is assumed that a business will continue to trade normally for the foreseeable future.
As small business owners, you are constantly challenged to become more efficient and stay competitive. Automation is often the answer, but not all technology is created equal. When it comes to money management for your small business, cloud-based accounting technology is the wise choice. Manual or hard-drive methods will only set you up for painful, time-consuming migration work in the future and possibly bottom-line impacting errors in the present.
You might already be familiar with some cloud-based software like Google Drive and Dropbox. The benefits of cloud-accounting software are not too different from these document management platforms. Here are six reasons why your startup or small business must go with a cloud-accounting solution to stay flexible and competitive.
Not only is manual processing tedious, it is also prone to errors and compliance risks. With cloud-based accounting, duplicated entries, fraud and other discrepancies can easily be detected because the whole process is fully automated. You also save on time that would have been spent on checking or locating errors.
Traditional accounting software only allows access to a single user. On the other hand, utilising cloud accounting with the reign of smartphones and other handheld devices lets users edit financial data and view real-time accounting information anytime, anywhere. It makes it easy for your team to collaborate. This means key people stay connected to their data and their accountants.
Everything is done online, which means you don’t need to install anything. Moreover, updates are done regularly and automatically. This financial benefit helps reduce overhead costs and other fees as they are managed by the cloud service provider.
Cloud technology provides backup functionality to prevent the possibility of data loss. You can control the privacy access of confidential data. So even if your computer is stolen, your data is safe and backed up because it is stored elsewhere.
Most cloud accounting software can integrate with other cloud-based software, which makes for greater control and flexibility. If you have specific needs, say a payroll system or a management tool, you can often integrate systems using add-ons.
With these advantages, overall efficiency and productivity are sure to be improved. There’s no need to constantly worry about installations and maintenance; spend more time focusing on revenue-generating activities. Seeing your data streamlined gives you a clear overview of your finances at a glance.
These advantages, among others, are why businesses are switching to a cloud infrastructure for their accounting. Not only does it offer a great user experience, it also adds value to your client services.
At Taxgain we partner with Xero and we are specialist Xero accountants in Sydney CBD.
Our clients love Xero and so do we. That’s why it’s included in our fixed price bookkeeping packages at no extra cost. By sharing your latest business numbers over the cloud with us, we can work together to make your business succeed.
Taxgain are Xero Accountants in Sydney. We are Xero Partners which means we know our stuff and can help you know yours.
Guest post by Intuit