For years, small business’ accounting software was a closed off system that gave information only privy to the accountants on the team. There was no easy way of seeing what cashflow looked like, which invoices were still outstanding and whether or not it was going to be a strong quarter.
Of course, the accountant could prepare daily reports for the business’ executive team, but there’s nothing better than being able to pull up your smartphone or tablet and see a quick, easy-to-read dashboard that shows you all of that information and more.
Here are some reasons why it’s time to switch to a cloud accounting platform in 2015.
Truly understand your cash flow
You should never be at a loss for words when someone on your team asks you what cashflow is looking like for the week. Cloud accounting software, such as Xero, can provide you that up-to-date information in real time. Xero’s dashboard, for instance, shows you how much money you have, where it’s being spent, who still owes you money and who you still owe money. Better yet, all of this can be accessed from the convenience of mobile applications.
Work on the go
Today’s modern-day business worker isn’t constantly in an office. In fact, many small businesses operate remotely. That’s why it’s important to use cloud accounting software that allows you to work wherever there’s an internet connection. You can reconcile your bank account from an app, and even snap photos of receipts that can be earmarked as expenses.
Total integration with everything you do
Software like Xero and even Quickbooks to a degree now, integrate with a slew of business-related apps. When you mash all of your apps into your accounting software, you can receive a more comprehensive overview of your business. If you use Expensify for your business’ expenses and don’t want to switch, it can communicate with Xero or other cloud accounting software, and show you exactly where the money is traveling.
Cloud can get you paid faster
Cloud accounting is just an overall faster process. You never have to worry about forgetting about collecting on an invoice because your dashboard — or any alerts you set up about overdue invoices — are blankly staring at you. You can set alerts on your mobile devices, or even collaborate with invoice-specific apps to send out email reminders to your clients. As a result, you’ll get paid faster and improve your cashflow.
The days of traditional accounting software are numbered. Expect more businesses to transition to cloud accounting in the very near future.