By James Lanning, General Manager at Keen
If the pandemic showed us anything, it showed us that companies need to be agile and adaptable to changing circumstances. One way to achieve this is to adopt a cloud accounting software. Cloud accounting software is an internet-based application that enables businesses to securely manage their finances from anywhere and at any time. Here are some of the benefits of adopting a cloud accounting system for your business.
Flexibility and convenience
Gone are the days of being chained to your office desk. During the pandemic, we learned that in many roles, employees can be productive when working from home. Organizations adopted tools that would allow their workforce to perform several job duties, including bookkeeping and accounting, remotely. Traditionally, accounting software was installed on a computer or server and required manual updates, backups, and maintenance. This meant your accounting staff or bookkeeper needed access to the computer or server through remote access software, VPNs, or a physical presence at the office. With cloud accounting software, organizations can access their financial data from anywhere, anytime, as long as they have an internet connection. This means that employees can work remotely or while they’re on the move, improving productivity and efficiency. Additionally, providers of cloud accounting software typically take care of backups, updates, and maintenance, reducing the burden on the business.
Cloud accounting software offers third-party integrations so you can connect to your bank and credit card account, point-of-sale system, or online store. This provides you with real-time access to financial data and reduces the time it takes to record transactions and produce financial reports. Real-time access enables organizations to make informed decisions and respond to changing circumstances promptly.
Traditionally, businesses would wait to receive their bank and credit card statements at the end of the month before reconciling their accounts and producing accurate reports. This led to delays in processing information that ultimately resulted in inaccurate and out-of-date financials. Direct connections with banks and other systems allow transactions to be captured into your cloud accounting software in real time, so they can be recorded throughout the month, quarter, or year, instead of at the end. There are even third-party apps that allow you to capture pictures of your receipts and code expenses at the point of purchase, reducing the gap between the time when a purchase is made and when it is recorded in your financial system.
Scalability through automation
If used correctly, cloud accounting software will allow businesses to do more with less. The ability to automate routine accounting tasks through machine learning and artificial intelligence is built in to most cloud accounting software. You can also pre-program the software to complete invoicing, expense coding, and reconciliations, so that accounting staff can spend more time reviewing and analyzing the data. Eliminating routine tasks from key personnel allows businesses to focus on growth, serving more customers, and improving the quality of their offering.
Cloud accounting software often integrates with other business software applications, such as CRM (customer relationship management) and ERP (enterprise resource planning) systems. When these systems “talk” to each other and allow information to be transferred seamlessly from platform to platform, organizations can streamline their operations and improve productivity by reducing the need for manual data entry and improving the accuracy of financial data.
Collaboration and visibility
Cloud accounting software enables greater team member collaboration. With configurable permission levels, some users may have full access to input and edit data, while others may have read-only access. This helps break down the wall between accounting and operations, allowing key personnel in your business to pull reports instead of having to request them from the accountant or bookkeeper. Cloud accounting software is often equipped with customizable dashboards that display important information about the operation in a format that is easy to digest, rather than requiring the user to generate several different reports and aggregate the information.
Adopting a cloud accounting software application will increase the speed and accuracy of processing financial data and making it accessible to organizational leaders. As a result, those leaders can make decisions grounded in numbers that are timely and accurate. This leads to cost savings for your business and allows you and your staff to focus on higher-value activities that require human expertise. If you are thinking about making the switch to cloud accounting and are looking for more information, please reach out to Keen and schedule a meeting (www.keenpayroll.ca/letschat). We can put together a transition plan that meets the needs of your business and ensures a seamless migration process.
James has over eight years of accounting and business experience working in positions ranging from financial controller to director of operations. He graduated with a BComm in 2014 and received his CPA designation in 2017 and a Certificate in Project Management in 2018. In 2021, he completed the Oxford Strategic Innovation programme. A perpetual learner, James is keen to help entrepreneurs grow their businesses by providing accurate, timely, and consistent financial information.
At Keen we believe financial information is empowering and that your time is valuable. That’s why we work with our clients as partners, focused on understanding your unique needs and challenges. Learn more about how we help entrepreneurs and organizations manage and grow their business at www.keenpayroll.ca.