Online or cloud business accounting software is a tool that helps accountants, bookkeepers, or business owners manage and automate bookkeeping transactions and accounting For a company.
Simply put, business accounting software helps automate tasks in the accounting process. For example, you’re can automate the process of creating journal entries each time you’re make a payment through you’re business bank account. Alternatively, you’re can generate financial reports with one click. Using a spreadsheet can take hours. There are many advantages and benefits of using accounting software, but the main ones are:
7 benefits of using Business accounting software
1. Access you’re accounting data anytime, anywhere
The most obvious advantage of cloud business accounting software over traditional accounting systems is that computerized accounting software allows you’re to access you’re data anytime from any device. Our online accounting software is available from you’re PC, laptop, tablet or mobile phone. All you’re need is an internet-connected device and a browser (or mobile app). 2. Easier collaboration
One of the key benefits of cloud business accounting software is that everyone has real-time access to accounting and financial data. Therefore, all employees have to do is log on to the platform and do what they are supposed to do. No traffic jams, no wasted time.
Multiple users can work on the same accounting data in real time without interfering with each other. Additionally, online business accounting software allows you’re to grant different levels of access to different users. This allows customization of privileges based on the bookkeeping or accounting functions that a user needs to perform
3. Save time with automation
Most of the work an accountant or bookkeeper has to do on a daily basis is highly manual and repetitive. For example:
- Create an invoice For each sale? I repeated.
- Track transactions and enter journal entries separately?
- Would you’re like to send a payment reminder to you’re customer? You know what’s important. Most steps in the accounting cycle can be automated. And this is the best online accounting software.
First, you’re can automate the creation of journal entries. All you’re have to do is integrate you’re bank directly into you’re business accounting software. This way, every time you make or receive a payment, a journal entry is automatically created and assigned to the correct account.
You can also automate things like financial reporting (e.g. Generates a report every X days of every month). Alternatively, you’re can set up automatic payments to you’re suppliers. Keep in mind, however, that not all cloud business accounting software offers the same level of accounting automation. If you looking for accounting software that excels in automation, try Deserta. Click this link for a free trial. No credit card required.
4. Improved accounting security
One of the biggest advantages of cloud-based accounting software is that all you’re accounting data is safely backed up in the cloud. This means you’re data is protected with layers of high-end encryption algorithms, making it much more secure than storing it on you’re office shelf.
And the best part is that all you’re data is always in sync. So not only is it safer, it’s also fresher. To put it more plainly, if you’re company uses desktop-based accounting software, you’re need to continuously back up you’re accounting data. Finally, this data is saved to you’re hard drive. As you’re probably already know, hard drives are very complicated. They may be destroyed, removed or damaged and rendered unusable.
As a result organizations spend less time integrating accounting and bookkeeping data into their disaster recovery plans. This means more costs and more wasted time. With online accounting software, you’re never have to worry about backing up you’re data. The system will do the backup for you’re.
5. Improving bookkeeping and accounting accuracy
Online business accounting software allows you’re to say goodbye to the most common accounting mistakes. Online accounting software ensures that you’re accounting records are always properly and accurate organized. Remember when you’re wasted 5 hours trying to figure out why you’re balance wasn’t balanced? Well, you’re can say goodbye to those times.
If you use cloud business accounting software and there is an imbalance in the newly created journal entry, the system will immediately notify you and point out the possible error. This way you will be notified of the error before committing it (e.g. Click Submit. This is just a very simple example of how accounting software can help you maintain more accurate accounting and financial data for you’re business.
Another common accounting mistake that can be avoided by using accounting software is errors related to data currency. Imagine editing a spreadsheet, or a spreadsheet that hasn’t gotten the latest version of a previously modified one.
Understanding how to merge changes from two different files can be time-consuming. But with online accounting software, all you’re data is synced on the cloud, so you don’t have to deal with that problem
Overall, using online accounting software will ensure that you’re accounting records are proper organized and accurate. This way, you’re financial reports will be more accurate, and you’re team will be able to make decisions faster aprioritize better.
6. Real-time reporting
Real-time tracking and reporting is likely one of the main advantages of accounting software. To track you’re accounting data in real time, all you have to do is integrate you’re online business accounting software with you’re business bank account and you will be able to track things like expenses, sales and inventory in real time.
The accounting software provides you with a custom dashboard (like the one in the screenshot below) that lets you’re track all the accounts and metrics you’re want to track. No more wasting time waiting for something as simple as a bank reconciliation. With online business accounting software you can perform bank reconciliation with just a few simple steps.
7. Reduce Costs & Save Money
You may be asking yourself, how can paid software help my business save money? The answer is simple. Using online accounting software will save you’re business, on average, about 300 hours a year. It takes into account the time wasted on things like doing repetitive tasks, correcting accounting errors, creating financial reports, and so on.
And since online accounting software typically only costs between $9 and $50 per month per user, it basically pays for itself, ten times that. When compared to ERP software, which can cost upwards of $10,000 per month, using online accounting software is without a doubt the best and most affordable way go accounting for a small business.
And that’s the advantage of using accounting software. Try to use accounting software so that you’re business can increase very rapidly. Good luck.