Cloud accounting technology is a new player in the economic landscape. It is similar to traditional accounting; bookkeeping procedures are done on accounting software. Cloud accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent to the server into a ‘cloud’ where it is processed and returned to the user. All application functions are done off-site, in the cloud, not on the desktop.
The accounting functions are done online and not on desktop software. The internet or another network is used for the process. Users access cloud accounting software through a cloud applications service provider. The software does not have to be installed on a computer. It can be accessed from any place globally, provided the cloud applications service provider is present.
Features of accounting software must include:
- Inventory management
- Sales tracking
- Contacts management and contact history tracking
- Account to accept credit card payments
- Generating Invoices
- Financial statements, cash flow statements, and balance sheet
- Budget planning
- Payrolls
- Taxation matters
Benefits of Cloud Accounting for Small Business
Cloud accounting technology is a new player in the economic landscape. Why? We’ve listed the reasons below.
- Access to accounting and bookkeeping data anywhere and anytime in the world. It allows you to spend time on other business operations-related activities or quality time with family. You can access cloud accounting software online at home and keep updated with your business’s accounting and bookkeeping functions. It always will have an up-to-date view of the business’s financial status to make the right decisions at the right time.
- Go paperless in accounting and bookkeeping. This step is Eco-friendly, too. Paperwork takes a lot of time for accountants and business owners. Small business owners need time to interpret accounting information. Accounting software makes it easy to interpret accounting information.
- Cloud accounting software has multi-user access.
- The software is automatically updated.
- It reduces upfront business costs. You do not face regular maintenance and fees for upgrading the system.
A Few Cloud Accounting Software and Their Benefits
You can access FreshBooks from a desktop computer and mobile phone. It has many features used to simplify accounting processes. It makes it easy to track expenses, make online payments, generate customized invoices, generate reminders of late payments, purchase history with time-tracking and client records, and manage different projects with different rates.
A 30-day free subscription to FreshBooks is available for a new user. After that, it costs $19.95 a month.
QuickBooks is the central bookkeeping and cloud accounting tool for small businesses and handles accounting operations. It is developed and marketed by Intuit. The QuickBooks software is used to:
- Generate invoices with the logo of your company and with all the details required by the customers
- Process payrolls according to HR policies
- Manage all business transactions, including bills from suppliers and vendors
- Manage Inventory
- Track expenses
- Creating professional invoices
- Categorization of income and costs
- Connectivity with online credit cards and bank accounts
- Online Sharing of data with an accountant
- Reconciliation of accounts due to the double-entry accounting process
Twenty transactions per month are free.
Outright is an online cloud accounting system for small businesses that tracks expenses, profit, sales, and customers. Bank accounts and other services such as PayPal, eBay, FreshBooks, and web stores can be connected to Outright, and data can be easily exported from one app to another.
- Xero:
- Dashboard with bank balances, expenses, and invoices
- Customized reports required by the small business
- Tracking cash flow in real-time
- Graphical presentation of data
- Data can be shared and accessible to accountants and others
- Generating customized reports and reminders to customers
- Scheduling of Payments and returns
Apple, Blackberry, and Android applications are available. Many add-ons like CRM, invoicing, and inventory management packages are also available on demand.
Conclusion
Cloud-based accounting technology is changing the landscape by providing its customers with services that were not available a few years ago. One can access their company’s data from anywhere worldwide by logging into the account. Small business owners must avail of this technology as the costs are affordable and benefits are more abundant than ever.
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