Small business owners must monitor transactions to assess their company’s financial health, comply with Australian law, and make sound, long-term decisions. However, accounting is a challenging field that requires professional assistance. Cloud accounting software is a cost-effective, time-saving strategy that helps organise your organisation’s finances.
What Are Cloud Accounting Programs?
Cloud based accounting packages are internet-based solutions that help small business owners with their financial management concerns. This strategy allows users to access vital financial information from the web instead of a hard drive.
Cloud accounting saves valuable accounting data online, giving business owners valuable peace of mind. However, it’s critical that they set up reliable internet connections to access information from anywhere. Cloud accounting allows users to monitor transactions on a mobile phone, providing transparency and convenience for busy entrepreneurs.
These small business owners can produce financial reports and access real-time data without an accountant, empowering them to manage their finances. If you decide to hire one, you can still generate financial reports and share information with your accountant using a cloud based system.
Why Choose A Cloud Accounting System?
As a trusted team of Gold Coast Xero accounting professionals, we strongly recommend that entrepreneurs and financial managers consider cloud accounting.
Here are ten questions worth asking before integrating this software into your business:
1) Does the software work with my budget?
Cloud accounting program prices vary. Many Australian service providers charge reasonable fees with no required maintenance costs after the initial payout.
Hire a software company that offers clients free updates. For instance, some service providers don’t charge customers for software updates when the system upgrades. If you find a similar company, it’s worth adding to your short list.
2) Is It Time-Saving?
Monitoring your financial transactions is time consuming. Unfortunately, small business owners who spend too much time managing their finances tend to overlook other business aspects.
Fortunately, a reliable system such as Xero cloud accounting can do the work for you. Cloud accounting systems manage your financial data automatically so you can focus on other important things. Setting your finances on auto pilot frees up valuable time and allows you to grow your business.
3) How Complex Is The Software?
User-friendly software allows small business owners to navigate the dynamic financial landscape easily. Simplicity rules the day if you’re looking for a dependable cloud accounting system. Some service providers offer customers free trials, providing valuable reassurance. If you receive a similar offer, it’s worth considering.
4) Does The Software Align With My Business Objectives?
Each small business has specific accounting requirements. Some of them require industry-specific features to help manage their financial issues successfully. For instance, a restaurant owner will only consider accounting software that monitors individual transactions. If you’re in the same predicament, please carefully consider your system requirements before committing to one.
Cloud accounting doesn’t always meet the individual needs of every Australian business. Although service providers offer various accounting features, their systems may have limited customisation attributes. Hence, some organisations with unique accounting concerns may encounter issues with this setup.
5) What Do I Want The Software To Do For My Business?
Determine the accounting features your organisation requires and look for software that meets those requirements. Doing ample research prevents paying for unnecessary extra features, which wastes money.
As your company expands, determine if it needs more accounting features. If it does, ask your service provider if it offers the features you’re looking for.
We recommend that your cloud accounting system has the following features:
- Create invoices
- Save customer information
- Monitor expenses
- Pay bills
- Generate financial reports
6) Does My Service Provider Have Reliable Customer Service?
Some cloud accounting providers have customer service representatives. You can contact them via phone, email, or online chat, providing valuable reassurance that help is always available.
Check your shortlisted candidates’ customer feedback on their social media accounts. Ensure they receive positive feedback to guarantee reliability, promptness, and professionalism. If your cloud accounting system encounters any issues, the customer service team can rectify them immediately.
7) How Safe Is My Information?
Reliable accounting software protects sensitive financial data, including the following:
- Customer contact information.
- Account numbers.
- Invoices.
- Expenses.
- Bills.
- Daily transactions.
Your service provider’s customer service team shouldn’t gain access to sensitive information or passwords. We strongly recommend that the software company should be bonded and insured. Ensure your business signs a written confidentiality agreement with the cloud accounting company to retain data integrity and prevent unauthorised data disclosure.
8) Can I Preserve My Financial Data?
A dependable web-based accounting system can prevent the loss of critical financial information. Instead of storing the data on your computer’s hard drive, you can access it from a secure remote server from anywhere in the world with a reliable internet connection. This setup preserves sensitive accounting information in unforeseen circumstances, such as natural calamities and hardware malfunctions.
9) Do I Need An Internet Connection To Use A Cloud Accounting System?
Cloud-based systems rely heavily on the internet. Although a web-based accounting platform’s accessibility from remote locations is a significant advantage, heavy reliance on the internet is also a drawback.
For instance, accessing the system in areas with unstable internet connections may be challenging. Hence, users cannot obtain the required information, complete vital transactions, or make important decisions.
Additionally, some cloud accounting servers are prone to regular downtimes due to frequent maintenance, human error, customer demand, or unforeseen technical and security issues. Small business owners should implement contingency plans, including the following:
- Check backup data availability: Many cloud accounting service providers store information in multiple data centres. If one crashes, small businesses can access financial data from other sources.
- Back up essential files: We recommend uploading critical financial data to a secondary location for easy access during server disruptions.
- Contact your service provider: Ask your contractor for an estimated timeline for normal service resumption. Rely on your backup files while your service provider fixes the issue.
10) Does It Require A Subscription Plan?
Although most cloud accounting subscriptions don’t require steep upfront fees, their long-term fees may drain your financial reserves. Hence, small business owners must consider the long-term repercussions of recurrent subscription charges.
Contact Us
TW Accounting has provided clients with over a decade of reliable, efficient accounting services on the Gold Coast. We have a proven track record and vast industry experience to assist you with any cloud accounting concerns. Please contact us today to start a discussion.
