Importance of Cloud-Based Accounting Software for SMBs
August 12, 2022
August 12, 2022
In 2019, the US alone spent $124.6 billion on adopting cloud computing. In other parts of the world, for instance, in Europe and Australia, 38% and 42% of businesses respectively are using cloud-based accounting software. In 2022, 92% of businesses across the world are expected to shift to multi-cloud systems and thus the market is expected to become worth $800 billion by 2025. These basic facts and figures are the easiest route to figure out the growing importance of cloud-based accounting all over the world and particularly for small and medium businesses (SMBs) as more than 40% of them found cloud accounting a preferable option. Hence, they make a life savior especially for SMBs because of some incredibly supporting features. Let’s find out how.
Expansion of Scale
If a small or medium-scale business has only a few hundred transactions, it may suddenly experience a boom in the near future with the number of transactions exceeding multiple thousands. Only cloud accounting software, in that case, is smoothly able to deal with such a shock. It allows a small business to expand its scale and even develop into a multinational corporation one day.
Every business is looking to grow its revenues regardless of size, and as a business grows, especially SMBs, the infrastructure and resources need to scale with it. This is where cloud based accounting software or SaaS solutions beat on-premise, desktop applications. Cloud software can easily scale with the business, without the need for expensive server upgrades, additional IT resources and associated overheads. With near-zero maintenance costs and no infrastructure expenses, cloud software including cloud accounting software is the ideal solution for a growing SMB.
Moreover, these software have built-in automation features that protect bookkeepers and accountants from entering tons of data manually. They are consequently able to save a great deal of time that they then invest in other valuable activities for their business growth. Automation of complex accounting processes also leads to increased efficiency where the chances of errors are minimal and easy to correct. You can also easily detect frauds. Cloud software like QuickBooks Online come with features that can check for any missing detail and immediately notify you about that.
Pocket & User Friendliness
Most ERP or financial accounting solutions can be cost-prohibitive which prevents SMBs from enjoying the amazing benefits that come with these digital solutions thus, putting them way behind in the race with more aggressive or cash-rich competitors. Cloud accounting software have leveled the playing field as they completely eliminate costs of maintenance, installation, servers and upgrades required on traditional desktop or on-premise software. Cloud based accounting solutions like QuickBooks Online are thus a wonderful budget-friendly option for SMBs.
Additionally, these software like QuickBooks Online are very popular among SMBs, accountants and the bookkeeping industry, for their ease of use. There is little to no learning curve and most stakeholders can use the product with limited training. Accountants and bookkeepers tend to start using the product without any additional training needs.
Cloud computing, furthermore, comes with endless integration possibilities. The service providers usually make their cloud solutions compatible with a relevant set of applications that you can use for all the different tasks in your company ranging from payroll management, online invoicing, marketing, e-commerce, etc. Integrations keep each of them on the same track with a shared database that helps you have an even deeper clarity about where your business is heading towards. It keeps you free from the worries of hiring different people for these different tasks.
Compliance to Laws
Cloud based accounting software helps you stay compliant with tax and other regulatory compliances. From revenue recognition to generating tax returns, financial statements, P/L reports, cash flow statements and more, cloud accounting software does everything expected of accounting software. In fact, in the UK as per the new compliance rules, desktop accounting applications are expected to be phased out by 2023 as they fail to meet certain regulatory standards, and businesses will need to switch to cloud accounting solutions by then.
Quick Decision Making
Cloud accounting products assist with rapid decision making due to ready access to real-time financial data. . So, instead of monthly or quarterly historical reports, cloud accounting enables you to have the most current picture of your business with further capabilities to add business intelligence modules for forecasting and analysis in real-time.
Supporting Remote Work
Cloud software like QuickBooks Online, Xero, etc. are also a blessing in disguise for businesses having remote working environments and employees distributed over different parts of the world. Since cloud computing does not require installations on specific desktops, an employee in the USA and an employee in Europe, both can easily access the company files on the same version without any major lag. This feature became of immense importance, particularly in recent times when the world dealt with the pandemic and people had to work remotely. The savior cloud accounting helped them combat the pandemic with equal force.
QuickBooks Online – A Viable Option
A cloud-based accounting software is important for SMBs but it has to be the right choice to be able to benefit the businesses. QuickBooks Online is the perfect choice for it is the enabler of all the aforementioned reasons why cloud-accounting software are significant. It is a cost-effective solution that offers transparent pricing. With 5 different plans, the software offers over 600 integrations meaning 600 different applications that you can associate with the software and support your business with. Its self-employed plan is for freelancers and contractors. It helps them automatically track mileage, generate invoices and also have access to an accountant. Its Simple Start plan automatically calculates sales tax, provides a review of your accounts through two reputable firms, and also schedules over 20 financial reports whereas the Essentials plan schedules over 40 of them. It also allows granting access to three users and transactions in several currencies. The Plus plan, on the other hand, can track locations, generate over 60 reports, add up to five users, produce customized budgets, etc. Lastly, the Advanced plan allows up to 25 years, an application to keep a track of everything, a dedicated accounting manager and so much more with a superbly user-friendly interface and a user-manual to constantly guide you through. Based on your requirements, you can choose any of the five plans and enjoy incredible levels of ease in your accounting.
Accounting Solution to Solve Today’s Needs
Cloud accounting software is the need of the hour, especially after the pandemic and because remote working is the new normal. SMBs can now hire financial talent from across any part of the country or the world thanks to the advent of cloud accounting. Businesses no longer have to settle for a local mediocre service when their bookkeeper on the west coast can access the company files and update transactions, while the accountant on the east coast can update reports at the same time a manager can approve expense requests or the business-owner could review weekly financial report while enjoying a break at their summer cottage. QuickBooks Online, for that matter, is a cost-effective, user-friendly and comprehensive accounting solution.
Get Professional Help with SaaS Direct
If you are looking for a leading QuickBooks migration service and for finding the right accounting software for your company, look no further! SaaS Direct is a multi-award-winning official QuickBooks Service Provider (QSP) in the US and Canada. A leader in data conversions with 20+ years of experience with clients across North America, Asia-Pacific, Europe & the Middle East. We move data error-free with zero downtime across 50+ major accounting systems and ERP. Talk to us regarding your data conversion needs for a session of expert advice.