Benefit#1: Easy access from anywhere, anytime

The nature of “the cloud,” which makes it possible for people to access information through the internet, is a major win in terms of accessibility.

Your accounting team might be scattered and located anywhere in the world, but has access to a centralized database where all accounting operations can be managed from.

The best part, you can make informed decisions on the go using a cloud-based accounting software like Xero, and work with talented accounting professionals located anywhere in the world.

Benefit#2: Prevents data loss through auto-backups

One of the greatest setbacks any business can face is losing critical financial data because of a hard drive malfunction or any related hardware storage error. It’s a common occurrence, and results in serious financial losses for companies.

With cloud accounting, the issue disappears because the information is stored on the internet. Software solutions like Xero facilitate auto-backups and make sure all important financial data is automatically stored on the cloud where data loss isn’t just possible.

Benefit#3: Collaborative accounting

Because users are connected over the internet, they can collaborate on the same files with more flexibility, communicate more efficiently, and overall work together more efficiently.

Cloud accounting software like Xero easily integrates with popular online solutions like Shopify, Amazon, Zoho, Stripe, Salesforce, etc allowing for multi-platform collaboration.

Benefit#4: Integration with Third-Party Apps

For almost every business today, operations are being managed through online platforms like Microsoft Outlook, Google Contacts, Mailchimp, Hubspot, Amazon, Shopify, and so on.

If you’re using a traditional accounting software, the flow of real-time information between these platforms and your accounting software will be limited. But with cloud accounting software, everything is streamlined because all real-time information can be synchronized and managed in real-time.

Benefits include accounting for payments made through Stripe, Paypal or an equivalent payment processing software, synchronizing bookkeeping with Hubdoc integration, connecting your Shopify/Amazon account to manage accounting for orders in real-time, and so on.

Benefit#5: Time-saving through automation

Cloud accounting solutions like Xero have multiple efficiency gains over traditional accounting software through automation. Our favorite three of these?

1. Automating bank feeds

Xero can automatically import bank transactions and categorize them, saving hours of manual data entry work.

2. Invoice automation

You can create electronic invoices with payment deadlines, create recurring invoicing tasks, and get automatic alerts and reminders without a lot of administrative tasks required.

3. Expense tracking

Xero can automatically track all business expenses, notify you based on custom alerts you create, and make sure all expenses are efficiently tracked without any manual labor required.

Benefit#6: Real-Time Reporting and Insights

Real-time access to financial information allows cloud-accounting solutions like Xero to analyze information in real-time and provide up-to-date reports anytime your business requires it.

You can even get insights into the most recent status of accounting functions for your business by analyzing data in real-time. On the other hand, traditional accounting solutions are limited in their ability to do this because they store and process information on local machines.

Benefit 7: Scalability and Cost-Effectiveness

As your business grows and you need more out of your accounting software, you only need to upgrade your subscription plan with a cloud-based solution.

With traditional accounting software, it might require changing the software you use or long software installation/upgrade times. This makes solutions like Xero more scalable and efficient to use in the long run.

The subscription-based model also makes cloud accounting solutions more cost-effective. You only pay for the features and number of users you need, and there are no long lock-in periods or high upfront costs involved.

Understand your cloud accounting needs with Caltrix

Traditional accounting software works, but it doesn’t stick the landing quite right like cloud-based solutions like Xero. With multiple advantages like being more cost-effective, scalable, enhancing collaboration, being easy to use, and so on, cloud-accounting software is the way to go.

If you run a business and are wondering what exactly you need from your accounting software, reach out to us and get professional help.

We help you shift your accounting operations to the cloud, and are a certified Gold Xero partner in Malaysia. Book a session with our team here and get started today!