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June 05, 2019 | Posted in:

4 Reasons Why it Might be Time to Consider Cloud Accounting

Going paperless with your accounting is a big decision, but for most businesses, moving records to the cloud is a smart move. A paperless accounting system can save you money. It can also
give you better control, better access to information and better insight about your financial performance. It can also help you work more efficiently. How?

 

1. Cost savings

A study by Bill.com reveals that a company writing 500 checks per month can save $20,000 or 93% on the costs of check writing alone when they move to a cloud-based system. Those savings include labor, materials, bank fees and postage. A cloud-based system also allows you to instantly collaborate with your banker, CPA, attorney, etc., saving travel costs for you and your advisors, while getting advice more quickly.

 

2. Increased control

With a cloud-based system there is only one version of the books. There are no updates and adjustments needed from your desktop-based system to your accountant’s system and vice versa. All information is in real time and can be seen immediately, making for faster decision making. Cloud systems also allow you to see who is and isn’t opening invoices. What’s more, data is secure and backed up in the case of a malfunction, theft or disaster.

 

3. Better access

One of the best things about the cloud is that you can login from anywhere. Whether you and your team work in multiple offices, travel for business, or work from home, access is 24/7.

 

4. Efficiencies

Cloud technologies allow for some interesting efficiencies. Take expense reports for example. With the right app, employees can scan receipts from their phones right into the system the minute the expense is incurred. This eliminates scanning receipts in the office, entering the data into an expense report and keying it into the general ledger. The task is now automated with potential for mistakes eliminated. Reimbursements can happen faster too, which is always great for morale.

There are hundreds of third party apps that can be integrated with cloud-based general ledger systems — for everything from recording supplies used on a job, to tracking time spent on different clients.

 

Cloud Readiness Checklist

When is it time to go to a cloud-based accounting system? If one of these scenarios describes you or your business, a move now might just make sense:

  •  I am on the go more than I am in the office.
  •  Monitoring cash flow is a priority for my business.
  •  I believe we could benefit from getting paid by customers two to three times faster.
  •  We have QuickBooks 2016 (or earlier).
  •  I am overwhelmed with gathering data, receipts and or paperwork come tax time.
  •  I would like to sync my bank, credit, and/or merchant accounts.
  •  My preference is real-time reports instead of after-the-fact data.

 

Our Cloud Coaches are here to help you throughout the transition. Contact us today to get the conversation started.

 

Caution: When considering cloud providers, apps and services, be sure that their data security and confidentiality agreements are stringent and well documented. Data should be encrypted and the access to your data should be strictly controlled.

 

This article was published in Alloy Silverstein’s Summer 2019 Newsletter. Click here for more content or to subscribe.

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