Cloud accounting: 7 reasons to make the change

When it comes to managing the finances, a lot of small businesses are using dated accounting software, a system of spreadsheets, or relying heavily on their bookkeeper.

Cloud accounting has well and truly arrived, and if you haven’t already, you should be looking into how this simple and easy-to-use technology can help you and your business.

Integrating your ServiceM8 setup with one of our supported cloud accounting solutions, like Xero, QuickBooks Online, and MYOB, further streamlines the management of your business, covering jobs from the moment they’re created all the way through to tax time, and providing great visibility across your operations.

So, what is cloud accounting? And why is it so great for small business?

Cloud computing and cloud accounting

Cloud computing is about using the internet to access software and store data, rather than your computer’s hard drive. Examples of cloud computing in action include netbanking, Hotmail, Google Drive, Dropbox, iCloud, and of course, ServiceM8.

Cloud accounting is the same: using the internet to access, manage and store your business accounts. The data is stored in data centres around the world, and transferred over the internet in encrypted data format. The portals you might use to do this vary – some cloud accounting products require the installation of basic software, while others are accessed only through your web browser. Most products also have apps for phones and tablets.

Seven benefits of cloud accounting solutions

1. Visibility.
   Get great visibility across your business’s financial position, with concise and real-time reports to keep you up to date and offering key insights for better decision-making and planning – information you can use use to improve your business.
2. Business continuity.
   All of your finance information is automatically backed-up and stored with bank-grade security in the cloud – one less thing to worry about in the event of a fire, break-in, or natural disaster, and no more relying on USBs or manual backups to the office server.
3. Flexibility.
   Working in the cloud means you and your staff have the freedom to view and manage the business accounts on the go, on a range of devices and wherever there is Internet access.
4. Collaboration.
   With the capability of multi-user access, you can share information, improve efficiency, and reduce bottlenecks. Maybe you need to discuss some issues with your accountant? Just provide them with access and you’ll each be able to review the accounts in real time while chatting over the phone.
5. Accuracy.
   Because you’re working in the cloud, everyone in the business is working with the same set of data, all the time. There’s also a lot less room for error due to the automation of a lot of manual data entry and reconciling tasks. They can hook into live feeds from your bank accounts, and generate reports and statements at a click of a button.
6. Scalable and cost effective.
   Cloud accounting solutions offer a range of pricing plans and feature sets to best match your business’s needs. Working in the cloud also means you’ll save on admin and IT costs, and won’t have to pay to upgrade to the latest version of the software.
7. Integration with ServiceM8 and other apps.
   There’s an expanding ecosystem of cloud-based software, and a lot of opportunity to combine your cloud accounting package with powerful apps like ServiceM8 which streamline and improve aspects of your business e.g. reporting, analytics, marketing, and customer relationship management.

So, if you haven’t jumped into the accounting cloud yet, check out our supported cloud accounting solutions:

• Xero
• QuickBooks Online
• MYOB

There can be tradeoffs when moving to a cloud-based accounting solution. Make sure the product meets your business needs, and if needed, get assistance from a bookkeeper or accountant who specialises in cloud accounting setup services.