You can’t have a business without a website. There are just too many advantages to being online- it’s such a great way for new customers to find you. It’s common sense at this point that investing in your website makes more sense than, say, getting yourself in the phone book (if people still make those).
There is plenty of merit to utilising online accounting software for small business too. Ideally, it will cost you less, make your work life easier, and maybe even make you more money in the long run.
Switching to a new software format can seem like a daunting task at the least and impossible at the most. At the same time, all this talk about the Cloud might have you wondering whether or not your business can benefit from it. Don’t worry: it can! Hopefully, this simple list of reasons will give you some inspiration to try out cloud based accounting software.
1. Focus on your work. Get paid quicker.
It’s hard enough to get the job done without worrying about when you are going to get paid for it, and receiving payments quickly is a real problem for businesses of all kinds.
According to a study from market risk analysts at Atradius, businesses in the U.S. wait on average 41 days to get paid. Worldwide, small businesses utilising cloud software for accounting are getting paid 15 days faster overall.
Wouldn’t it be nice to get paid for the work you already did? Of course! It’s a complete waste of time to keep tracking down clients who owe you money. That’s time that should be spent getting new customers or working on new business.
Simple accounting software for small business streamlines this process, allowing for instant and automatic invoicing.
2. Keep the money you make.
Chasing people down who owe you money is bad enough- it’s even worse to get taken advantage of. An eye-opening study from the ACFE shows that the problem is more common than you might think, and more destructive: Fraud impacts 29% of businesses with fewer than 100 employees.
Using cloud-based software to handle your finances actually reduces the risk of fraud or embezzlement. It might not make your business impenetrable, but it greatly increases recovery time and chances.
According to the study, proactive data monitoring and analysis that is standard in cloud accounting software was used by only 35% of the victim organisations, but when it was used, it lead to frauds that were 60% less costly and 50% shorter in duration.
This cuts down on the biggest issue of the study, which is that 58% of the victim organisations had not recovered any of their losses due to fraud, and only 14% had made a full recovery.
3. Access at Anytime, Any place
Accounting software for business can help keep track of your money for you, but you’ll want to be able to keep track of it yourself as well. Here’s one of the biggest advantages of cloud-based services, whether they are for business, accounting, or anything else.
Anywhere you have access to the internet, you have access to all of the financial information about your company that you might need.
Forget keeping a notebook full of receipts, or a bunch of different Excel documents. Locked behind the cloud, your important financial documents are safer than they would be in a filing cabinet in your office. On top of that, integrated document scanning will cut down on time and human error.
Spend more time doing your job and less time trying to wrangle paperwork. Plus, watch your account info get updated in real-time after you scan or input invoices.
The point is, watch exactly where your money is coming from- and where it is going, from anywhere.
4. Feel secure.
We’ve already talked a little bit about security and how scary fraud can be, but what about hackers and theft? Despite what common convention might lead you to believe, the cloud is actually safer than hosting everything in house. Cloud users flat out experience less attacks: according to a study from Alert Logic, customers using the cloud experienced an average of 27.8 attacks vs. the 61.4 attacks that on-premises users faced.
In the event of a different disaster, you won’t have to worry about losing hard copies of documents. Your data will be automatically backed up to the cloud, which is much more secure.
They cannot be stolen, destroyed, or lost. Even if your computer explodes, they will still be there, waiting to be accessed by you from a different device.
5. Build your ROI
Grow your ROI just by using a different set of programs. How? By cutting down on costs like larger IT departments, more employee training, and even the costs of running a server room full of computers.
According to the Open Group, the four easiest ways of increasing ROI are “decrease the investment, increase revenue, decrease costs, and make the return faster.”
Coincidentally, cloud software requires lower investment because it allows you to scale as you go. It allows you to increase revenue by functioning as CRM, which will help you keep customers coming back and help you to market to the right people, increasing your profits. It decreases costs in the ways we just mentioned.
And it allows you to get your return faster by getting paid quicker!
Of course, every industry is different. But using cloud-based accounting software for your small business will more than likely help you grow your business faster, all the while making more money and cutting down on mistakes and losses.