By now, the word ‘digitalization’ shouldn’t be a stranger to you. Businesses (especially service providers!) going online would naturally pick up the thought to digitize their business to streamline processes, operations, and business flow. It is all through “cloud computing”.
Cloud computing means that your personal computers, usually with access to an Internet connection, can be used to store and finance the operations of a business with remote servers. Therefore, a business is able to store data on their computer using a software via ‘Cloud Computing’.
For accounting and finance-related cloud software, there are cloud accounting software available in the market for a business to adopt. In this blog, we will cover why businesses need cloud accounting software and how cloud bookkeeping can help put your business in good financial health.
Let’s start from the basics.
Cloud-based accounting software is basically a cloud software that helps business owners keep a record, analyze, do and update financial information (financial data) on their computers with the cloud software which allows them to monitor any business’ financials.
For a startup, cash flow is a crucial thing, and business owners love to keep an up to date (and most likely) useful information about cash flow. Therefore, shop around for a cloud accounting software which enables business owners to monitor the flow of cash and manage their expenses easily. To find the right one for you, consider these Top 5 Cloud Accounting Software in Malaysia.
Cloud technology has to be even more advanced now to allow a business to know how the finances are going to be used and how financial information is going to be managed.
Before we dive into the advantages of cloud bookkeeping, it is important to know that cloud bookkeeping and cloud accounting are not two separate things. They are both a part of the cloud accounting system in a cloud accounting software, coming together as an accounting solution for businesses to keep track of their financial records and accounting data online.
So, you don’t have to look for a cloud bookkeeping software because it can all be done in your cloud based accounting software. Thus, using a cloud accounting software as part of the business practice includes a wide range of benefits.
The presence of cloud technology like Xero means data can be exchanged with a bank account based on a static connection. It also means financial data will be stored in the cloud instead of your computer hard drive, keeping your business’ records safe and secure to be accessed in the cloud without manual backups.
Cloud technology is ever-evolving and they also have various ways of issuing orders for their cloud solutions; by coming up with new software products and by introducing the efficiency enhancements to fix issues associated with the major and small businesses that spawned them. Other functions are connected to the Internet or mobile phones to allow easy contact to access other customers as well, making online reporting a breeze.
The cloud solution also saves time and money for you as business owners because of its remote location. On top of it, you can gain real-time financial information at your fingertips no matter where you are. For example, you can view financial statements on the go through your phone or laptop and monitor real-time cash flow. Online cloud bookkeepers like CALTRiX can deliver accounting to your office (or home office!) on your computer. It enables you to gain control of your business at all times to the cloud platform while gaining rich information from real-time reports.
Traditional accounting consists of the bookkeeping process and an accountant spend time researching, data entry, and data security. Online invoicing specifically deals with the invoice and accounts receivable process, whilst bookkeeping supports other needs such as invoicing.
When used by businesses, the software is like a virtual machine. It helps fasten accounting processes by 5 times through automation and a synchronized and integrated system that operates within the cloud accounting software.
In fact, the main purpose of a cloud accounting software is to efficiently generate invoices and quotations, and also to reduce manual repeated work. It is a much friendlier software compared to traditional accounting software that runs on installed desktop programs and systems.
Cloud technologies are built with integration to sync every operation in a business. The cloud ecosystem that the cloud accounting software is in comprises of integrations to cloud payroll, expenses & claims, cloud document management, and more. It ensures that every operating system in your business works together to have a centralized system.
It works to allow you the capability to merge business apps together without leaving your computer system. This in turn can make it much simpler, faster and cheaper to think about.
Any small business owner would love to switch to a cloud based software that can handle their financial documents very easily. Additionally, a cloud accounting software would be a great team player among staff.
You’ll be able to create transactions and journal entries without data entry, saving you time and manual labour by eliminating the extra steps to get accounting processes done. Any repeating work can be automated and scheduled so you won’t miss out on serving your clients with top-quality service. It is one of the best features of cloud technologies.
Online accounting software can simplify accounting, increase productivity, and ensure your businesses are aware and accounted for from the start. Safe to say, using a cloud accounting software will open the doors to your business’s growth.
Xero is a good solution if you want to manage your monthly reconciliation, online invoices, receivables, bookkeeping, payroll, and more. There are 9 powerful features of Xero that can help support every part of your business.
Plus, the Xero app store enables you to enjoy all the benefits of Cloud accounting through the integration of cloud ecosystem that we mentioned above. Xero has more than 1000 integrated apps that could pair with your business needs. Some of the examples are Talenox, Unleashed, CIMB BizChannel, Hubdoc, Xero Expenses and many more.
Click here to read the 5 Best Xero Integration for Growing Businesses in Malaysia.
On top of being a burden-free software for life in an office, cloud bookkeeping may be the best option for improving finances for small business. They meet the demands of an outgrowth, social, and environmentally-friendly population as the industry embraces cloud computing. So, the best way for a small business owner to look out for a cloud accounting software that excels in books and staff is to help cover all the errors and issues that may lead to saving money, improving cash flow, and building profits.
A business owner should make every effort to consult a Xero Certified Advisor to get advisory and to stay connected with Xero – Cloud Accounting Software. Connect with one through CALTRiX, a leading Gold Partner of Xero that has specialisation in services such as Xero Migration, Implementation and Bookkeeping. Have a FREE Clarity Call with us to start your Xero journey today!