It isn’t easy to let go of the processes and tools you’re used to. And when these systems involve company finances, the change becomes even more challenging. You cannot help but think that you are throwing away years of financial data in just a snap. However, even good things can become better!
If you are among the business owners looking into switching to cloud accounting software for bookkeeping and accounting, this article is for you! In this blog post, we’ll discuss why it is time to let go of your Excel sheets and enjoy the benefits of cloud accounting software. Keep reading. This is just the push you need!
Why Let Go of Excel Sheets?
We understand that Excel sheets are your comfort zone. There are routines you’ve built and tasks assigned to individuals throughout the years. However, you cannot deny the flaws in using spreadsheets.
Some of the reasons to let go of Excel sheets we mention below might be things you’ve already experienced. If you are torn between choosing Excel or cloud accounting software, these are the red flags shown by spreadsheets.
Difficult To Access
Excel sheets are difficult to access as they require individuals to log in to a computer where the file is. If one needs a copy of their own, they need a USB, an email address, or a shared drive. And if changes are made to the main copy, they need to repeat the process of file acquisition to get the same file with the most updated version. This is time-consuming.
Prone to Human Errors
Data input for Excel sheets is manual, which makes it more prone to human errors. Although you can add formulas and rules on the sheets to make computation and summarization of data automatic, if the data source has mistakes, the results will also be inaccurate. Even the formulas are prone to error, so to make sure that data on the sheets are correct, you and your team need to do frequent and detailed checking.
Susceptible to Corruption
When you use Excel sheets, you should always have a backup file as they are prone to corruption. Scenarios like trying to open the Excel sheet but receiving a prompt that the file is broken or lost and having no backup are the worst. The financial data you’ve worked for and collected can disappear quickly, and you need to start from scratch again.
Doesn’t Encourage Collaboration
To manage your business finances, different departments in your company need to submit their income and expenses. The bookkeeper and the accountant should work together to ensure books are updated and accurate for reports and the tax season.
However, this collaboration is difficult with a single Excel sheet you can access on one computer. The burden of data collection and updates is also only on the person who has access to the file.
Limited Integrations
Integrations are a part of online accounting software development. Even Excel acknowledges this need as you can now integrate a couple of tools like Outlook, Mailchimp, Google Sheets, Trello, Hubspot, and Slack with it.
Although these are helpful, they are limited. Businesses also need to integrate applications for banks, payment channels, optical character recognition (OCR) technology software, inventory, timesheet, project management, and more!
Why Go for Cloud Accounting Software?
If you’ve been using Excel sheets for a while now, there are plenty of good reasons why it is time to move on to cloud accounting software. If you are still hesitant to let go, these cloud accounting benefits may give you the push you need.
Accessible Anywhere, Anytime
One of the first benefits of using online accounting software is its accessibility. With cloud accounting software, data is stored in the cloud, not in a single computer. With that, anybody who has the login details to the company’s books can access them anytime and anywhere as long as there is an internet connection.
Access isn’t only within office hours. The cloud is available 24/7, so you won’t have issues if you have employees working in different time zones. They can check the books anytime.
Work With a Team
Gone are the days when only a single person could update the books and then send the most updated copy to stakeholders. Now, your team does not need to log in on a single computer or transfer data to have access to the books. With cloud software, teamwork and collaboration are encouraged.
This feature benefits companies that follow a hybrid work setup, with employees working at home, in the office, or on the go. Time disparity isn't an issue. If one team member updates anything, everybody will see the changes immediately.
Extremely Accurate
Cloud accounting is also great with accuracy because it takes away manual inputs that are prone to error. To begin, you can use OCR technology to turn details in receipts and documents into soft copy text. You can integrate the OCR application into your accounting software for the data to automatically go into the books and be categorized.
When your bank accounts are integrated into the cloud accounting software, bank reconciliation also happens automatically. If there are any disparities, you can spot them immediately and correct the details.
Many Integrations
Aside from OCR and bank integrations, here are more tools you can connect to your cloud accounting software to keep all your financial data in one place.
- Data from ecommerce sites like Amazon, Shopify, eBay, Etsy, WooCommerce, Walmart, etc.
- Different payment applications such as various banks, PayPal, Stripe, Plooto, Bill.com, Rotessa, Expensify, etc.
- Inventory management software like SOS inventory, Fishbowl, cin7, Sortly, Netstock, etc.
- Customer relationship management software like Method:CRM, Housecall Pro, Insightly, Salesforce, Zoho, HubSpot, etc.
- Project management tools such as Bigtime, Trello, Buildertrend, etc.
- Payroll and HR management software such as Gusto, TSheets, Guideline, Justworks, QuickBooks Time, etc.
- Tax software like Turbotax, TaxAct, TaxSlayer, Libertytax, etc.
- OCR software like Hubdoc, Tilpati, Datamolino, DocuPhase, Grouper, etc.
Forget about extracting data from the software and pasting it into your Excel sheets. With integrations, data will be automatically seen in your accounting software. The process saves time and eliminates the possibility of committing mistakes.
Automatic Updates
Because various applications are already integrated into your cloud accounting software, updates are automatic. Your accounting software will reflect whatever changes happen in these integrated applications.
Since many of the tools integrated into the cloud accounting software are also cloud-based, they update automatically. This feature is especially beneficial when it comes to the ever-changing sales tax rates. Be confident that you’ll always have correct taxes as the software updates the rates automatically.
Use Templates or Customize Reports
Reporting is easier using cloud accounting software as dashboards containing key performance indicators of your business finances are readily available. You can also get many other templates for essential reports like income statements, cash flow statements, and balance sheets in just a few clicks. And if you ever need to customize to include more financial details, many cloud accounting software lets you do so.
World-Class Security
With all the important data you’ll store in your software, security is surely a top concern. Cloud accounting provides advanced encryption, which many systems use to protect electronic data.
On top of this, you can control who can access your financial information in the cloud by giving logins to trusted team members. No malfunctions or natural environmental causes can corrupt the important financial data you have.
Grows With Your Business
Lastly, cloud-based accounting software can grow with your business. To begin, when you choose a software, you’ll most likely have to choose between different plans.
As a business rookie, your accounting needs may include tracking income and expenses, creating invoices, connecting banks, and handling taxes. However, as your business grows, you may need to track your inventory, set recurring transactions, manage projects and your employees’ timesheets, and keep track of your budget.
There are beginner, intermediate, and advanced plans which vary in offers. Which plan to pick depends on your business’s size and needs.
Unloop’s Utilization of Cloud Based Accounting Software
If you’re still on the fence about whether or not cloud accounting is right for your business, we hope this article has helped clear some things up for you. There are so many benefits that come with switching from Excel sheets to cloud-based accounting software, like working with a team, having access to your account no matter where you are, and taking advantage of integrations that make life easier. Not to mention, cloud software can update and grow along with your business.If you want to learn more about how to streamline your accounting processes, contact us today at Unloop! We’d love to help you get started!