Modern technology and the Internet has changed a lot of things for everyone. From the way we communicate with one another, the way we shop and even the way we do our business. As a matter of fact, much of today’s small businesses conduct a part of their operations online.
Experts believe that a large percent of companies will rely on cloud technology by the year 2022. Frankly speaking, the benefits of working online are too good for business owners to pass up. But at the same time, they often find themselves intimidated by everything — and the fact that there are now thousands of providers offering various solutions doesn’t help too.
For smaller companies, such changes or migrations is considered as detrimental moves that can heavily impact them. They want to make sure that they know what these so-called software for small businesses are all about and that’s totally understandable!
With this in mind, Lumos has decided to create the ultimate guide to the best cloud accounting solution! Today, we’ll discuss what this accounting service really is, how it works and the seven mistakes you should avoid. To get us started, let’s break down what it really is.
What is Cloud Based Accounting For Small Businesses
In a nutshell, cloudbased accounting functions similarly to normal accounting — except this time, the management software, balance sheets and other financial data is hosted by the Internet. This means much of the operations and the quickbooks are online.
It allows financial businesses to access important files real time anywhere and anytime! And over the recent years online accounting softwares has changed the way businesses operate.
What Are the Pros of Cloud Based Accounting Software
The benefits of modern accounting softwares for small businesses go beyond mobility and flexibility. And while advantages may vary on each solution, they generally have seven main assets.
Automated Manual Processes For Data
Traditional accounting and bookkeeping takes time but with the help of the internet and today’s technology, the process will increase its efficiency and will allow companies to focus more on important things like business growth.
Real-time Updates Online
Being able to access updated data will empower business owners to make informed decisions sooner rather than later. They no longer need to wait before making detrimental moves!
In instances wherein a business experiences sudden growth, adjustment period may take quite a while for traditional operations. Your team will have to first meet up to discuss the changes you’ll make to accommodate the transactions you are accepting.
Luckily, online accounting is adaptable enough to support sudden jumps in the business
Paperless operations matter most today and automating your accounting process makes this shift much easier. Aside from being a big help to the environment, it’s beneficial from an office space perspective!
A cloud-based software does not come with extra costs such as maintenance, upgrades as well as system administration!
All of the additional fees will be shouldered by the cloud provider. Additionally, server failures will no longer be much of an issue!
Should an enterprise decide to fully integrate their operations online, they won’t have a hard time doing so! Doing so will improve the efficiency of your processes and increase the overall power of your online accounting software!
Is Accounting Softwares Safe?
One of the more pressing concerns business owners often have with online accounting is security. Given the sensitivity of the data they’ll be uploading online such as bank account and credit card details, just how safe is the software?
In comparison to a normal desktop software that can be easily compromised if a unit is stolen, lost, or damaged, cloud based applications have several security benefits. Each software comes with its own security policies outlining the protection of sensitive data. Additionally, the majority of solutions in the market use innovative measures to protect sensitive data!
7 Key Mistakes to Avoid on Cloud Accounting Software
Investing in accounting solutions is a great way to streamline your business. But that doesn’t mean you can’t or won’t’ make mistakes when you’re getting started. Here are some of the most common mistakes you’ll want to avoid from the beginning.
Being Unfamiliar with Your Current System
The only way to fully understand the types of cloud accounting and web-based financial solutions your company needs is to understand where your current system is falling short. Look at the features that your current software provides and ask your accounting team what they wish was different.
When you understand precisely how your software works and where it makes life harder for your team, the better equipped you’ll be to start looking for new or better online accounting solutions options. If you’re feeling confused about the software that you currently use, ask your accounting team for a walkthrough. This will give you a basis to compare programs.
Not Listening to Your Accounting Team
Unless you handle your business’s accounting yourself, you’re likely unaware of the major challenges the department faces. Before you start looking for and utilizing a cloud based provider, talk to your accounting team. Ask them to explain the features they absolutely need to do their jobs well.
Create a list of these things and ask each vendor you speak with how their software will meet your team’s needs. If the vendor can’t answer your questions or tells you that their service won’t be able to fit your needs, keep looking.
Ignoring Your Company’s Budget
Though many there are more affordable than other options and simplify the process for your team so you can save money on labor, they will still cost something. Before you commit to a certain program, make sure it’s one you can afford.
Look at how much your business is currently spending on accounting software and think about how much money you’re willing to pay over that amount for a better solution. Look for cloud accounting and web-based financial solutions that fit your budget and don’t fall into the trap of paying more than you can afford.
Failing to Research Vendor Options
When you’re in a hurry to find the best solution for your business, it’s easy to settle for the first service you find. Instead of falling into this trap, take your time and choose a service that’s worth your time and money. Do your research and see what other business have to say about the cloud based service. Get to know their representatives and make sure you have all of your questions answered before you make a decision.
Not Demoing the Software Before Purchasing
Once you have a few vendors in mind, you need to see how their program interacts with your company’s setup and find out what your team thinks about the service. The best way to do that is by requesting a demo from each vendor and getting insight from the people who will be using the interface the most.
Not demoing the software before you agree to subscribe to the service almost always guarantees a more difficult transition. Take the time to let your team go through the demos in detail so they can give you feedback.
Not Using the Support Your Provider Offers
The best providers offer support during and after the implementation period. Not utilizing that support is one of the biggest mistakes you can make especially as your team starts to work out the kinks of the new process.
Support is just a phone call or online chat session away and it’s the fastest way to troubleshoot and resolve issues that would otherwise disrupt your business’s flow. Use it to your advantage and never hesitate to reach out to the provider if you run into trouble or experience ongoing issues.
Forgetting to Reevaluate Your Company’s Needs
Your needs will change over time and the cloud based solutions you’re currently using might not be the ones your business needs in the future. Take the time to reevaluate your company’s needs each year and make sure the service you’re using works with your needs at the time.
Get the Best Cloud Based Accounting Software for Your Business
Ready to invest in the best cloud based accounting solutions for your growing company? Reach out today to discuss your business’s needs with our team. We’ll help you find the best solution for your company.