Businesses need access to professional, reliable financial advice, but finding an accountant can be a challenge. Some business owners assume the only way to get professionals on their teams capable of ensuring tax compliance, providing personalized business advice, and keeping track of financial systems is to hire a full-time accountant. In fact, that’s rarely the best solution.
For most businesses, it makes more sense to outsource payroll, bookkeeping, and tax preparation to professional third-party accountants in Vancouver. Remember, the times have changed. Working with an outside company no longer means paying more money and creating extra hassles. It opens up possibilities for businesses of all sizes.
What Is Cloud Accounting?
Before discussing the benefits of cloud accounting, let’s nail down a definition. Cloud accounting refers to the use of cloud-based software solutions to manage a business’s finances, taxes, payroll, or other related tasks. Some cloud accounting solutions are designed for very small businesses with few employees that could benefit from fully DIY systems, but most combine the benefits of cloud computing with the advantages of traditional accounting firms.
The Benefits of Cloud Accounting Services
Cloud accounting systems have already begun to change the ways that businesses manage their finances. Most people already understand the general benefits of moving key operations to the cloud, so this article will focus exclusively on the advantages of using cloud accounting services. They include:
1. Security
Accounting firms that provide cloud-based services offer a much greater level of security than individual on-site accountants using legacy software tied to company databases. These companies take securing their clients’ financial information very seriously and are subject to numerous data protection laws and regulations. Cloud-based accounting firms also keep data backups of all their clients’ most essential information, so they can help with protecting against not just cybercrime but also the damage caused by natural disasters and other unforeseen issues.
2. Scalability
One of the most frequently cited benefits of cloud computing is that it offers a far greater level of scalability, and cloud accounting is no exception. It allows small businesses to pay for only those services they need and then scale up plans as the companies begin to grow and thrive. There won’t be any need to worry about how to transition to a more comprehensive solution when the business expands.
3. Accuracy
Accuracy is essential when it comes to accounting, in general, and tax preparation in particular. Thankfully, cloud-based accounting software and services make it easy to reduce human error and cross-check data to ensure its accuracy. Frequent data reviews ensure that nothing gets missed and nothing is added or double-counted.
4. Efficiency
The buzzword of the day in today’s business world is efficiency. Streamlining a company’s business processes, including how accounting tasks are handled and integrated into the daily activities of different departments, can increase efficiency dramatically. Instead of worrying about busy work, employees will be able to access accounting information easily on an as-needed basis and spend the rest of their days focusing on core tasks instead of data entry.
Is It Time to Make a Change?
This may come as a surprise to some people, but there are still businesses out there operating on legacy accounting systems and preparing taxes personally by hand. The problem is that business owners don’t always realize there is a better way. Working with a cloud-based accounting service will save time, money, and a lot of headaches. It’s time to make a change.
