In today’s world small businesses are evolving at a fast pace and ideas are turning into business models. To achieve high efficiency and achievement of goals technology nowadays plays a vital role.

Ever wonder if you can travel across the world along your business? Well now it’s a dream come true, through cloud technology facility you can have all your business reports at the ease of your palm.

Cloud and Cloud accounting

It is a platform through which we can access softwares online anywhere, anytime and via any device. Using cloud accounting you can have insight of your business daily cash ins and outs without even approaching your accountant or financial advisors. Your information is saved and processed in the cloud from which you and whomever you want (Like Financial advisor, Tax preparer etc.), can view the financial reports with a dashboard view.

 

How does it works

With the facility of working 24/7 and without being compelled to work from only an office computer, through cloud accounting you can work on your accounts and business financials just by recording proper business transactions accurately. 

Unlike conventional accounting software, in cloud accounting you can keep track of your businesses income and expenses just by creating an account on cloud accounting service provider’s platform (Yes as easy as creating a Facebook account). 

 

 

• Setting up your company

After creating your account along with your legal status of business you will set up your company. This is the foremost and important step as many business documents will have the details of the business that you will mention in this step.

• Creating Chart of Accounts (COA)

Chart of accounts or listing of accounts are the skeleton of our business accounting. It is the primary stage to set up accounting functions, business reports are based on the design of COA. In cloud accounting software you have a default chart of account design properly to suit different industries, having said that you can always design and import your own chart of account.

• Migrating your books

If you are a startup and this is your gestation or first fiscal year then you can skip this step. But if you’re running a business and want to migrate your existing accounting books to cloud accounting software then you can start by importing excel or CSV files (as supported) to the new system. Or you can start by putting opening balances to the new Cloud accounting facility (CAF).

• Recording income and expenses

Start by creating invoices to customers for the business and recording invoices from vendors (expenses). You can keep and store a copy of invoices in CAF linked with the respective transaction. Many conventional desktop accounting software do not provides dashboard view but in cloud accounting softwares you can view real time changes on the dashboard comparing the different accounts and most importantly assets comparison with liabilities.   

• Report settings

For ultimate results and reports you have an option in the CAF to customize as per company and title report as per relevancy. Some CAF providers allow report customization more than others you can titled your report, set fiscal year, clubbing of accounts and much more.

Benefits of Cloud Accounting Facility (CAF)

• It is a cost saving solution.
• You can access your business dashboard, giving you business insight at any time anyplace.
• Collaboration between teams in different parts of the world is as easy as in the same office.
• It provides a 100 percent paperless environment (saving earth).
• Real time bank reconciliation through direct bank feeds (an advantage that is not available in desktop versions of accounting softwares.
• Highly secured with no tension to take backups at periodic ends
• No updation is required compared to the traditional accounting softwares. Instead you will always work on the updated version.
• You can directly send invoices to your clients after creation and can see if your client has viewed them or not.

App Ecosystem

You can have add-ons as per your need in these accounting softwares, many of them provide third party applications integration and whole market space having hundreds of applications. They get integrated with cloud accounting software, speed up the information flow in the organization and reduce admin tasks to minimal level.

There are countless advantages to move your books on cloud and scale your business by keeping track of business along you.

Some Cloud Accounting Facility Providers are

• Xero
• QuickBooks online
• Sage Business Cloud
• Wave accounting
• Zoho books

And many more.

Amidst corona virus (COVID19) world is realizing the power of using cloud technology in businesses. Cloud accounting is now more than necessity. If you need any assistance in cloud accounting feel free to write to me.

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To consult about cloud accounting software feel free to contact me.