Flexibility and Profitability for your Business: The Cloud Accounting Advantage.
Your ability to successfully manage finances is essential for the long-term success of your business. You know that traditional accounting and bookkeeping methods are rapidly being replaced by cloud accounting services. Cloud business accounting is the process of managing all your accounting needs in the on-line cloud, using secure, cloud-based software. You’ve heard of the accounting platforms QuickBooks Online and Xero – plus there are many more software tools integrated with your accounting platforms that allow you to upload and report your data in real time.
Here are 6 major advantages that cloud accounting brings to the world of finance:
1. Saving Time and Money
One of the largest advantages of cloud accounting is efficiency. Cloud accounting tools eliminate the lengthy, time-intensive and expensive process of entering financial details into a desktop program. This is especially beneficial for businesses with high transaction volumes.
Guildstreet clients simply snap a picture of their receipts or email-in their bills directly into their own dedicated Dext inbox. This seamless process avoids the frustration of back-and-forth paperwork. Cloud accounting technology allows an efficient and streamlined process and every detail is reviewed by our accountants and bookkeepers to ensure accuracy.
Cloud accounting is super efficient, and this efficiency has a direct impact on cost. With a level of automation involved that removes the labor-intensive work, now businesses can save money and realize greater quality. What do we mean by saving money? Consider the cost of hiring a part-time bookkeeper, paying them hourly, providing an office and computer and compare that cost with a cloud business accountant’s fixed fee. Cloud accounting can reduce your accounting costs by as much as half.
2. Security
The risk of lost or stolen data is a reality every business faces, and that risk increases when you use paper documents. Paper documents pose several security threats given that paperwork can easily be lost, stolen, and damaged. Although converting to a digital setup helps, data stored on a local device is also at risk of hardware malfunctions or failed backups.
The step up to Cloud accounting offers a secure solution by harnessing the power of encryption, regular backups, multi-factor authentication, and intense security measures that ensure your information is safe. Data security is one of the most critical aspects of managing your finances, which is why the software used at Guildstreet protects your data with bank-level encryption.
And since all your records are in the cloud, encrypted and secure, there is never a need to download any data onto a laptop and risk your security for the sake of portability.
3. Accessibility
More and more companies are embracing the hybrid work model. Your finances can also adapt to an on-the-go lifestyle. A major perk of switching to cloud accounting is that all your financial records are ready to view at the click of a button—allowing you to make important decisions in real-time from any location.
Unlike traditional bookkeeping which involves manual data entry, cloud accounting transactions are immediately recorded and stored. Giving you the ability to view relevant information, such as cash flow, profits, and expenses, quickly and conveniently. Guildstreet clients benefit immensely from this level of flexibility, especially since it allows them to track their financial performance throughout the entire year and not solely during tax season.
4. Ecommerce Integration
Ecommerce and digital commerce businesses especially benefit from the flexibility, scalability, and security of cloud accounting solutions. Ecommerce platforms like Shopify or Amazon and payment platforms such as Stripe and Square integrate seamlessly with cloud accounting software. Guildstreet uses Dext commerce which allows us to review and then flow through sales and payment data into your accounting records quickly and very accurately. And this allows us to produce quick and accurate financial reports.
Since ecommerce is such a fast-paced data-driven environment, the integration of cloud accounting is crucial. Cloud accounting provides real-time inventory tracking and management, consolidated sales data from multiple channels, and powerful reporting features that simplify tax management.
5. Information to help you run your business.
Right now, do you have timely access to reports showing your gross profitability? Can you reliably see how much of your gross profit is taken up with shipping costs? Can you see why your profit is high and your cash flow is low?
Another advantage of having accurate and timely records in the cloud is that your standard accounting data can produce a variety of informational reports allowing you to see the real results that your business is achieving.
6. Future-Proofing your Business
Business markets are increasingly fast-paced and competitive, especially in digital and ecommerce. Embracing new technology as your business grows helps you remain a frontrunner in your industry. Scaling your company means evolving your accounting needs, and as the volume of receipts, transaction and financial data increases, traditional bookkeeping methods will weigh you down.
The power of cloud accounting gives your business access to advanced features and integrations that give you a competitive advantage in the market as you quickly adapt to changes and challenges.
And another advantage, tax authorities like the CRA are taking a digital approach when it comes to auditing, making cloud accounting solutions crucial when keeping up with new regulations and meeting compliance requirements. Guildstreet stores every financial record safely and securely so when the CRA comes calling, providing accurate, up-to-date information is simple and stress-free. And we will deal with the CRA reviewer on behalf of your business.
Worried about the learning curve of switching to cloud accounting? Don’t be! With the right expertise, this transition is not only seamless but will benefit your business long-term and help you scale up.
Did you know that Guildstreet is 100% paperless? We leverage cloud accounting tools to offer our clients fast, secure, and accurate financial management.
Let Guildstreet handle the heavy lifting while you focus on growing your business and grow your prosperity. Learn more about our services here or book a call with us today to discuss your options. The first call is always free.
Written by Hannah Lemiski
