As accountants, we’re used to working in the past. We operate under the principle that reporting on historical information, whether it be financial statements or tax returns, is highly relevant to our clients due to its use in critical instances like bank financing and creating benchmarks on operations. That being said, if you're a business owner or decision maker, you also want real-time information that empowers you to make informed financial decisions—anytime and anywhere.
Enter cloud accounting. In the past decade or so, cloud-based accounting software has made a sizeable impact on the accounting industry, empowering us to provide clients with up-to-the-minute data whenever and wherever they need it. If you’re thinking this sounds like something you and your business could benefit from, here’s a few more reasons why you should consider moving your accounting services to the cloud.
Document Management and Organization
Cloud-based software solutions are like Swiss Army knives for your business; they do so much more than simply storing information off-site. Take audits, for example. Cloud accounting neatly packages all the documents required for a successful audit, organizing them in a more accessible format that makes your auditors' lives much easier. And for small businesses, forget about stuffing your office with piles of paperwork—cloud storage saves space and keeps your records safe and sound for a reasonable fee.
Data Protection
Most cloud-based platforms offer comprehensive security features that can be a lifesaver for your business. These systems give you the ability to manage user access and permissions, ensuring that only authorized individuals can access sensitive financial information. They also offer built-in disaster recovery plans, storing your data on secure, remote servers that are often situated in multiple locations. This ensures your financial data is safe from natural or digital disasters like fires, floods, or power surges and can be quickly restored from the cloud in an emergency.
It also goes without saying that modern, reputable cloud accounting platforms invest heavily in their product’s cybersecurity. In addition to using state-of-the-art encryption and firewalls, these companies employ monitoring teams that will flag potential issues and raise alarms at the first sign of suspicious activity or attempts to access your data.
Systems Integration
Integration is the name of the game when it comes to cloud accounting. These platforms are designed to seamlessly connect with various other business tools and systems, maximizing the automation and accuracy of your financial processes. One significant integration feature is the ability to link your bank account directly to the software. This integration enables the automatic import of transactions, eliminating the tedious task of manual data entry and making bank reconciliations a breeze.
Cloud accounting platforms also recognize your need for flexibility, especially when making payments to vendors or invoicing customers. As such, they offer the ability to incorporate electronic billing capabilities directly into your systems. From one platform, you can send out invoices via email, take online payments, complete payroll, and even issue vendor payments. Regular software updates mean these platforms are pulling in the most recent tax rates and information, keeping your payments accurate and your operations compliant without the need for purchasing annual updates.
AI Integration
But the magic doesn't stop there. Cloud accounting software is leveraging the power of AI to revolutionize bookkeeping practices. With AI algorithms in action, these platforms can predict and suggest the appropriate coding for transactions, making your bookkeeping tasks more efficient than ever before. By learning from patterns and historical data, the software becomes increasingly accurate in coding transactions, reducing the need for manual intervention and speeding up the reconciliation process.
An experienced cloud accounting team can support you through the implementation and rollout of cloud-based software, assist with reconciliations and even be your off-site virtual cloud accountants. If you think cloud accounting is a good fit for you and your business, reach out to your CPA advisor to see how you can get started.
Written by Amy Duncan, CPA, CGA from DMCL. This document was written for our quarterly bulletin, Canadian Overview, published by Canadian member-firms of Moore North America.