An electronic record keeping system using conventional accounting software is quickly becoming irrelevant for SMBs. SMB owners need up-to-date financial information at their fingertips to stay ahead of their competition. Cloud-based accounting is revolutionizing the way owners capture and run their businesses, analyze and report their financial information and even how they engage with their customers.
According to an Accounting Today 2018 Survey, 45% of small companies, 57% of midsize companies and 58% of large companies utilize cloud accounting over desktop alternatives.
This article outlines the key benefits that SMBs can reap by leveraging cloud-based accounting platforms
1. Real-time financial reporting
It has become much easier for the owners to keep their data up-to-date with cloud accounting software. SMB owners no longer have to rely on just a single computer holding all their financial records, or having to use a USB drive to get the data from one place to another. Traditional non-cloud accounting restricted key people in the organization from accessing financial data and reports when and where they needed to. But now, cloud-based accounting helps SMB owners to see a clear overview of their business’s current financial position in real-time – no matter where they are.
2. Provides data security & backups
One of the biggest challenges for an SMB is the security of their business infrastructure, as it involves regular monitoring and maintenance which typically require large outlays of cash and expensive expertise. Some of the most common security breaches that might occur are outages in networks, failures in hardware and even simple human errors resulting in data not being accessible. Cloud-based accounting helps in minimizing these security pitfalls. Cloud accounting platforms facilitate data backups at regular intervals and have a systematic process to retrieve the backups whenever needed.
Last year, a study commissioned by Microsoft found that 60% of small to medium - sized (SMB) business owners that hadn’t yet adopted the cloud were concerned about the security of their business.
3. Flexible working and outsourcing becomes possible
With the help of cloud-based accounting platforms, data is accessible wherever there is an internet enabled device and internet link enabling a team to be able to work anywhere in the world. Cloud technology enables SMBs to bring employees onboard from anywhere which can certainly save office expenses and expands the area from which they can seek talent. SMBs can even outsource their back office functions easily and painlessly leaving the owner and staff to get on with serving their customers and focusing on their strategic business growth.
Moving to the cloud is an opportunity for the SMBs to transform their business and succeed in the competitive economy. By adopting cloud-based accounting platforms, SMBs can keep their costs low, better manage their cash flow and streamline compliance.
Quatrro offers a broad range of platforms and cloud-based accounting services by leveraging the industry’s leading accounting platforms designed to create economies of scale resulting in enhanced financial visibility, lower costs and improved business processes. Its client base includes more than 6500+ small & medium businesses across the auto parts, restaurant, retail, healthcare, hospitality and nonprofit industries, including franchises of some of the most iconic brands in the nation.