In today’s digital age, technology has revolutionised how businesses operate, and bookkeeping is no exception. Traditional manual bookkeeping methods are becoming outdated as more and more small businesses are turning to cloud-based bookkeeping solutions. Cloud-based bookkeeping offers numerous advantages over traditional methods, providing small businesses greater efficiency, flexibility, and accessibility to their financial data.
Long gone are the days of manually inputting your account information. This tedious work takes too much time and can put you out of business if you’re not careful.
This blog post will explore the benefits of cloud-based bookkeeping for small businesses and how Verbeek Consulting specialises in offering such services using popular platforms like Pastel, Sage 50, QuickBooks, and Palladium.
What is cloud-based bookkeeping accounting?
Cloud-based accounting allows you to keep your books online on the accounting software of your choice. Your information is hosted on remote servers and accessed through the Internet. Instead of installing and running accounting software on a local computer, you can access your accounting data and perform financial tasks through a web browser or a dedicated application.
In cloud-based accounting, financial information is stored securely in the cloud. The information is stored in servers equipped with advanced security measures and backup systems that ensure the highest protection of your information.
Cloud-based accounting software offers a range of features and functionalities similar to traditional, locally-installed accounting software. Users can perform tasks such as invoicing, expense tracking, bank reconciliations, generating financial reports, managing accounts payable and receivable, and more.
How cloud-based bookkeeping accounting works
Users subscribe to an online accounting software solution (Pastel, Sage 50, QuickBooks, or Palladium) and move their books to the cloud. From then on, they can access their accounts from any web browser or an app on their phone. Most users connect the software to their business bank account so that banking transactions flow automatically from the bank to the books. This saves them from manual data entry and minimises input errors. Users can be assured that their banking information is safely stored on the server, and accounting packages usually have a two-factor authenticator for increased security measures.
Problems with traditional based accounting software
Here are the common problems our previous clients have had with traditional software:
- The system isn’t always up to date.
- It only works on one computer, and data gets moved from place to place, for example, on a USB drive – this is not secure or reliable.
- Only one person has user access, meaning key people can’t access financial and customer details and cannot collaborate.
- It’s costly and complicated to keep backups (if they’re done at all).
- It’s expensive, difficult and time-consuming to upgrade compared to cloud accounting software, which updates automatically.
5 advantages of cloud-based accounting
Running your business accounts online has many advantages.
- Data about your sales or income and purchases can flow straight from your bank to your books, so you don’t have to spend hours interpreting or understanding them.
- You can see your current financial position at any time online.
- Multi-user access makes it easy to collaborate online with your team and advisors.
- It’s online software, so there’s nothing to install or update, and all your data is backed up automatically, so you will never lose any of your important information.
- You can set up a dashboard showing important financial information like who owes you money, what bills are due, and how your cash flow looks.
Enhanced Accessibility and Flexibil
One of the primary advantages of cloud-based bookkeeping is the accessibility it provides to small business owners and their accountants or bookkeepers. With cloud-based bookkeeping solutions, financial data is stored securely on remote servers, allowing authorised individuals to access it from anywhere, anytime, using any internet-connected device. This flexibility is particularly beneficial for small businesses with multiple locations, remote workers, or those on the go.
Small businesses can reduce their reliance on paper-based systems, which can be time-consuming and prone to human errors. Digital records can be accessed instantly and securely, saving time and improving data accuracy. Mistakes can easily be rectified and addressed, reducing small business owners’ stress from accounting.
Verbeek Consulting specialises in cloud-based bookkeeping services, supporting various platforms such as Pastel, Sage 50, QuickBooks, and Palladium. These platforms allow small businesses to choose a solution that best suits their unique needs while ensuring their financial data is accessible whenever and wherever required.
Improved Collaboration and Real-Time Updates
Cloud-based bookkeeping facilitates seamless collaboration between small business owners, accountants, and bookkeepers. Instead of sharing physical copies of financial documents, cloud-based platforms allow users to share files, make updates, and leave comments in real time. This instant collaboration enhances communication, reduces delays, and ensures that all stakeholders have access to the most up-to-date financial information.
Verbeek Consulting understands the importance of collaboration and leverages cloud-based bookkeeping platforms to streamline communication between clients and their team of experts. By utilising Pastel, Sage 50, QuickBooks, or Palladium, Verbeek Consulting enables small businesses to collaborate efficiently, ensuring accurate and timely financial reporting.
Verbeek Consulting can help your business set up your accounting software and enable you to understand your financial statements every month.
Increased Efficiency and Time Savings
Manual bookkeeping processes can be time-consuming and prone to human error. Cloud-based bookkeeping automates various tasks, reducing the time and effort required to maintain accurate financial records. For example, cloud-based solutions can automate bank reconciliations, invoicing, and expense tracking and generate reports with just a few clicks. Small businesses can save time, increase productivity, and focus on core business operations by minimising manual data entry and automating repetitive tasks. This will help you grow your business at the same time.
Verbeek Consulting specialises in cloud-based bookkeeping services, allowing small businesses to leverage the power of automation. With platforms like Pastel, Sage 50, QuickBooks, and Palladium, Verbeek Consulting streamlines bookkeeping processes, eliminating redundant tasks and providing clients more time to concentrate on growing their businesses.
Enhanced Data Security and Backup
The security and backup of financial data are crucial for small businesses. Physical documents can be lost, damaged, or destroyed, resulting in a complete loss of financial records and can take up costly space. Cloud accounting software can provide enhanced security features, such as automatic backups, encryption, and multi-factor authentication. This ensures financial information is protected from cyber theft, damage or loss.
Verbeek Consulting understands the significance of data security and backup for small businesses. Using cloud-based bookkeeping platforms, they offer robust security measures to safeguard clients’ financial information. Pastel, Sage 50, QuickBooks, and Palladium are renowned for their stringent security protocols, ensuring that sensitive data remains confidential and protected.
Cost-Effectiveness and Scalability
Cloud-based bookkeeping eliminates the need for expensive on-premises infrastructure, such
as servers, hardware, and software licenses. Small businesses can leverage the cost-effectiveness of cloud-based bookkeeping by paying for the services on a subscription basis, typically with affordable monthly fees. This eliminates the upfront investment and ongoing maintenance costs of traditional bookkeeping systems.
Furthermore, cloud-based bookkeeping solutions offer scalability, allowing small businesses to adjust their service level based on their needs easily. As a business grows, it can easily upgrade its subscription to accommodate the increased volume of financial transactions and data. Verbeek Consulting specialises in providing scalable cloud-based bookkeeping services through platforms like Pastel, Sage 50, QuickBooks, and Palladium, ensuring that small businesses can adapt their bookkeeping solution as they expand.
Conclusion
Cloud-based bookkeeping has transformed the way small businesses manage their financial records. The advantages of cloud-based bookkeeping make it an ideal solution for small businesses looking to streamline their bookkeeping processes.
Verbeek Consulting specialises in cloud-based bookkeeping services and offers expertise in popular platforms such as Pastel, Sage 50, QuickBooks, and Palladium. By leveraging these platforms, small businesses can take advantage of the numerous benefits that cloud-based bookkeeping provides, allowing them to focus on what they do best—growing their business.
As cloud technology continues to expand and evolve, small businesses will continue to have more powerful tools to help them succeed in the ever-changing business landscape.
For more information, please feel free to get in touch with us. Our friendly staff members will be happy to help.
References
- FinTax Bookkeeping LLC. (2023). 5 Key Benefits of Cloud Accounting for Small Businesses. https://www.linkedin.com/pulse/5-key-benefits-cloud-accounting-small-businesses/?trk=pulse-article_more-articles_related-content-card.
- Xero. (2023). Why cloud accounting is good for business. https://www.xero.com/za/guides/small-business-cloud accounting/#:~:text=Online%20accounting%20software%20keeps%20small,applications%20over%20a%20desktop%20computer.
- Visram, O. (2023). 5 Reasons to Move to a Cloud-Based Accounting System. https://smallbusinessbc.ca/article/5-reasons-to-move-to-a-cloud-based-accounting-system/.