Why Source for Cloud Accounting Services: Top 5 Benefits
It is common for small- and medium-sized enterprises (SMEs) to be struggling with filing spreadsheets as they grow. There are so many details to consider, and it can feel like there is no end in sight. However, you should not overlook the amount of paperwork to tackle in the accounting department – not when there are regulatory compliance requirements to observe when running a business in Singapore.
There is no better time than now to implement cloud accounting services, especially during unprecedented times when the way we work has been vastly changed by the current COVID-19 pandemic. With work-from-home remains the default arrangement in Singapore, companies can continue exploring more efficient ways of working remotely as part of the new normal. In fact, according to a survey commissioned by Xero, about 62 percent of SMEs used online business solutions during the pandemic, gaining a 30 percent increase in overall cloud adoption in 2020 compared to 2019.
If you are evaluating your business continuity plans, consider sourcing for cloud accounting services that will not only enhance your business success but also give you peace of mind when you know your work is being handled by professionals in the field.
Top 5 Benefits of Cloud Accounting Services
1. Enhance the efficiency of your business
With cloud-based accounting solutions, your financial transactions will be inputted into the system. This eliminates the hours required for manual recording of accounting entries and minimises the risk of errors. The cloud essentially comes with a wide range of tools to help you process your financial data more efficiently so you can save time and do more work without stress. At Chartsworth, we use Xero cloud accounting which supports InvoiceNow to send invoices digitally between the accounting systems of business suppliers and customers. Now, you no longer have to manually handle invoices and instead, enjoy a speedy process of managing payments all in one platform.
2. Secure data sharing
As businesses become more reliant on technology in their day-to-day lives, the need for a safe place to store data becomes apparent. When compared to traditional accounting methods, cloud accounting stands out from a security viewpoint. When your data is securely stored in the cloud, you won’t lose important business information if your system needs maintenance or is infected with a virus. There are also some regulations and certifications that can give you the reassurance that your information is safe.
For example, Xero cloud accounting is certified as compliant with ISO/IEC 27001:2013 and globally recognised as the premier information security management system (ISMS) standard. Besides logging in to the Xero software with your login and password, you can also employ multi-factor authentication for more control on who accesses your information. Coupled with industry-standard TLS (Transport Layer Security), 24/7/365 monitoring and more features, rest assured you have one of the safest options when it comes to storing and managing information.
3. Flexible usage in and out of the office
Cloud accounting wins with the ability to provide accessible, real-time information from anywhere in the world and from any device as long as there is an internet connection. The ease of access to business data provides you with a good indication of your company’s performance at any time, enabling you to make timely business decisions based on the numbers.
4. Have a better view of your business
Additionally, the process of finding and accessing information on a cloud accounting software program is also much quicker than the traditional method. You no longer need to scroll through pages of outdated reports to understand where your business currently stands. Cloud accounting allows you to have a complete view of your company’s finances in real-time, here are some of the reports that can be generated as and when the need arises and why they are important to the business:
- Invoices owed by customer – you could use this to have early communication with customers with long overdue balance to avoid letting any receivables slip through the cracks. You can also stop further goods or services to be performed to these customers until they settle their outstanding amount.
- Bills to pay – you could use this to estimate the upcoming cash outflow and how the business can generate sufficient cash inflow in time to meet the financial obligations.
- Financial performance indicators – this gives you an overview on how the business is performing in terms of gross profit margin, net profit margin, current ratio etc
5. Easy set-up
While manual accounting involves recording transactions on excel – making it prone to errors -, desktop-based traditional accounting may also not be the most secure or reliable. Besides having no proper backup, it can also be costly to maintain the IT infrastructure with limited scalability options. You may have already experienced these inconveniences currently while adopting these methods.
On the other hand, the monthly subscription of cloud accounting allows you to instantly do away with upfront costly investment of purchasing software and installation. Any software updates are easily done in the cloud, so essentially all you need is a working internet connection. Should your laptop crash, you can be assured that no data is lost in the process.
Moreover, when scaling up your infrastructure to keep pace with the company’s growth, it is also simple to upgrade your cloud accounting plan from single-currency to multi-currency when handling global transactions.
Take Your Business in the Right Direction
Many businesses are turning to cloud accounting for a number of reasons. Some have found it’s easier to use, while others appreciate the security and updates offered by the service. Chartsworth’s monthly accounting plans come with a complimentary Xero cloud accounting software subscription while letting the accounting experts handle it for you. Get in touch with Chartsworth today to find out how we can help.