We’re well and truly into the era of cloud computing and hosted storage and many of us know the great perks it brings. Your data is accessible from anywhere in the world as long as you have an Internet connection. That means you’re able to continue working, or outsource your work to just about anyone you’d like to, without needing to send hard copies of materials.
In this post we’ll take a look at a few reasons why you should move your bookkeeping to the cloud. Take a look below.
It’s More Affordable
If you’ve ever heard that cloud bookkeeping is too expensive, then you’ll be glad to know that that’s a myth!
Traditional entry-level desk based software (non-cloud based) is usually a few hundred dollars upfront, at the least. Then when you tack on monthly or annual costly software upgrades, to comply with government legislation, it can quickly cost thousands of dollars.
This is where cloud-based bookkeeping comes to the rescue. Subscriptions are extremely affordable, so much so that small startup businesses should have no trouble at all paying for their fees. There are even free plans available depending on your needs, and basic entry-level plans for simple bookkeeping needs start at just $5 a month.
You’ll Have More Choice
You may have heard of Xero, MYOB & QuickBooks but there are more than six major cloud-bookkeeping providers out there that are perfect for Australian small businesses.
Something important to remember is that each service provider will usually have different plans. That means it’s important to compare providers and their plan inclusions as well. A good few inclusions to compare are:
The number of employees that can be included in payroll.
Whether you can attach documents.
TPAR (taxable payment annual reports) reporting capabilities.
GST coding.
No matter what you or your business need, there's a perfect cloud-based solution out there.
Your Bank Feeds Will Be Added
This feature is a godsend for so many of us. A large majority of cloud-based bookkeeping programs will automatically link your bank accounts, saving you hours or weeks on data entry.
The transactions automatically appear in your feed so all you’ll need to do is tell the program how they need to be allocated. You can even have your accountant set up banking rules for more common transactions so the program basically does the work for you.
A Cloud-based Service Allows App Integration
As a business, there’s a good chance you’re accepting payments through multiple different applications and services. This is where cloud-based bookkeeping platforms come in most handy, with their ability to integrate applications.
A few common services that you’ll find seamlessly blend into your accounting software include Paypal, Shopify, Cin7 and Hubdoc. At Money Monarch, we love Paypal’s apps as they effortlessly track your fees!
Your Data Will Be Protected and Backed Up
Security and space issues disappear when you have your accounts in the cloud. A large majority of data centres are geographically separated from one another to prevent data loss in the event of major catastrophes.
The best part is that most cloud-based accounting services won’t have lock-in contracts. That means if you decide to cancel there will still be a period of time (usually 12 months) where you still have access to your secure data.
Exporting your reports is really easy too. If you decide to cancel or move on to another provider it takes just a few clicks to get a hold of all of your data and move it across. Remember though, even if your cloud software has remote protection, always ensure you have security installed on your local computers.
It Saves Paper in the Office
With cloud accounting, that's exactly what you get. Not only are all your everyday business financials in the cloud, but you can also attach the source documents in most programs as well. This means no bills, bank statements or loose receipts laying around the office. Everything is simply copied digitally and moved to the areas in the cloud where they belong.
Here’s the best part, if you're unfortunate enough to be involved in an audit, everything is there with no chasing-up necessary. No matter what you’re asked to find or provide, you’ll be able to do so in just a few clicks.
Always remember to check with your cloud software provider on how your attached documents can be backed up if the event you wish to cancel.
Talk to Money Monarch’s accountants about your cloud accounting needs. We can help you compare programs depending on your requirements and can even offer significant cloud-accounting discounts. Our relationship with many popular Australian software providers allows us to offer subscription prices well below retail rates.