What if we told you that the majority of your accounting problems could be solved with one simple answer? Adopting cloud-based accounting apps and processes can be the solution to many of your biggest pain points. Done right, the solution goes far beyond accounting, positively impacting many aspects of your business. But that’s the key—you must choose the right applications for your business and create processes with a purpose. Below are five of the most common problems that bring businesses to the cloud, as well as the ways they’re solved.
Fraud and theft
As remote work is proving to stick around for the long haul, cybersecurity has taken center stage (or at least it should). Along with cybersecurity threats, organizations of any size can sadly fall victim to internal fraud and theft. If your company doesn’t have proper internal controls, you may be exposing yourself to unnecessary risks. Cloud-based accounting apps reduce the risk of cyber threats and can help business owners implement internal controls while adding world-class security standards that are compliant with Privacy Shield and GDPR requirements. Apps also offer standardized processes for approving payments that go a long way in adding internal controls on the movement of funds.
Lack of financial insight
Businesses rely on financial insights to make decisions. Without those insights, running the business is a guessing game that can lead to costly mistakes. If your books are out of date, still running in Excel, or you’re unable to pull accurate reports, making business decisions will be a struggle. A survey showed an astonishing 69% of those interviewed believe their organizations have made significant business decisions based on inaccurate financial data. Cloud-based accounting apps give business owners a real-time, accurate picture into their business. Accounts, inventory, and sales are always up-to-date with automated entry and management. From overall finances to payroll and inventory, apps give you the details you need to know. No more waiting for your bookkeeper to manually enter in expenses and revenue. View details, pull reports, and make financial decisions collaboratively with your team and financial advisors from anywhere, at any time.
Have you ever gotten to tax time, only to realize you are completely unprepared? Your books are all over the place, reminders are on sticky notes, receipts are piled high on your desk, and you have yet to collect 1099 information. You’re not alone, but that doesn’t mean you need to go through another nightmarish tax season. Disorganized books can lead to stressful tax situations, and can also lead to incorrect financial insights, which as mentioned above are incredibly important to have accurate and up-to-date. Cloud-based accounting apps are the most powerful tools to get your accounting organized. You can capture your expenses with one-click receipt scanning. Inventory management is simplified and more accurate with QR codes. Payroll becomes seamless with automated payroll taxes and the ability to manage W-9 information from freelancers.
Although the digital world enables remote collaboration, it doesn’t always come easily. Ever tried to open a file and receive a permission denied notice or send countless emails back and forth with your CPA? Accounting can come with collaboration challenges, especially when your books are saved on your computer. Cloud-based accounting is the solution to collaboration challenges we have all faced at one point in time. When the books live in the cloud, collaboration can be done in real-time without the need for emailing files back and forth. Team members can virtually work together on the same project without any delay. Sharing your books with your CPA or bookkeeper is secure, enabling virtual collaboration that improves productivity.
How many hours per day, per week, per month, do you (or someone on your team) spend entering data into your accounting software? Chances are that the cost associated with the time spent entering accounting data is far more than the cost associated with investing in a solution to automate the process. Manual data entry is a thing of the past. With cloud-based accounting, data entry is automated, saving valuable time. As a business owner, your time is better spent on tasks that will move the business forward. Building an accounting tech stack also eliminates the need for double data entry, increasing efficiency.
If you’re experiencing any of the above problems within your business, it’s time for a new approach to accounting. Cloud-based accounting apps offer the solution to your business problems. It’s time to get organized, save valuable time, increase efficiency, reduce the risk of theft, and get insight into your company’s financials. Send us a message to see how accounting apps can be the solution to your business pain points.