Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
Can I trust my financial matters to the cloud? It's probably the first question you had in mind upon discovering cloud-based technology. That's understandable; after all, you'll be saving data in sources that are accessible anywhere and anytime with an internet connection. So naturally, you might doubt its safety and stick to your own devices.
However, we don't want you to miss out on this excellent feature. Contrary to your doubts, cloud technology is more beneficial than you think. It's primarily designed to make file storage easier while retaining solid security.
If you're a small business owner, there is a good chance that the idea of keeping up with your finances and bookkeeping stresses you out. You have to juggle marketing, sales, customer service, and more on top of balancing your bank accounts. That's where cloud accounting technology comes in! This blog post explores the key features of cloud accounting software that can save you from financial headaches.
The Basics of Cloud-Based Accounting Software
Cloud-based accounting software allows you to access files and information from anywhere in the world, mostly with an internet connection. It has similarities with Software as a Service (SaaS) and is hosted on remote servers.
The way it works is simple: businesses will store their important financial data on remote servers managed by the cloud service provider. Then, the data you send into the cloud is processed and returned accessible by users. This eliminates the need to set up individual computers for each team member because they can already access these data on their own devices.
What are some of the top benefits of cloud accounting software? When it comes to cloud technology, it's all about solid data security and backup. Physical documents or portable storage devices can get lost easily, but if you have copies of them on the cloud, consider yourself saved.
Moreover, they're more secure than the storage features in your device. A strong cybersecurity protocol is strictly practiced to protect any sensitive data you upload on the servers. Consequently, the best cloud accounting software reduces the risk of potential hacking incidents.
6 Key Features of Cloud-Based Software for Your Bookkeeping and Accounting Needs
Now that you understand how cloud-based technology works, let's move to its key accounting features. What features make it a handy tool to prevent bookkeeping and accounting mistakes? What can cloud accounting software do for a small business?
Remote Storage Access
Cloud technology hosts data on the cloud, which means that you can access them anywhere and anytime, no matter the device you're using. This is arguably the biggest advantage of cloud software. That said, ensure you have an internet connection (or set up offline access beforehand) to get the data you need, such as bank account updates and financial reports.
Frequent Auto-Backup Systems
Another benefit of cloud software for accounting is the automated backup system. Your data is frequently backed up, so there's no need to worry about losing them. Whether you delete data by accident or experience a computer crash, cloud-based software ensures you'll always have access to the latest version of your files.
Strong Protection Against Malware
Scared of getting your desktop-based files corrupted? With cloud services, the provider takes care of the security for you. They have a team of experts who protect your files from corruption, malware, and ransomware attacks. In addition, cloud-based systems incorporate encryption, which means they rewrite information into a highly secured code. As a result, it keeps the files safe when sent or stored in the cloud.
Easy and Controlled Access
Cloud-based software allows you to choose which users can access certain files. You can also revoke their access rights at any time if necessary. This feature helps companies who want tight control over sensitive data and ensure that only authorized individuals view or edit company information. Financial information is particularly confidential. Usually, you'll only need to allow access to your bookkeepers, accountants, and higher-ups when it comes to management.
Software Integration and Automation
Accounting and bookkeeping are key aspects of a business. So why not integrate these functions with software to make work easier? Fortunately, most cloud-based accounting software features integration with other tools such as invoicing, CRMs, project management tools, and more.
This allows you to automate tasks that usually require manual input. For example, you can use configuration to allow Quickbooks to integrate with Office Exchange Online. You can now automate creating new records whenever you receive a customer email in Outlook.
Paperless and Sustainable Management
Traditional accounting methods often require a lot of paperwork. From bills and invoices to receipts and bank statements, you have to keep track of everything and store them in an orderly fashion. It can be time-consuming and tedious, not to mention that it's also easy to lose or misplace documents.
Thanks to cloud-based software, you can now work in a paperless office. No more manual data entry, traditional bookkeeping, and printing hard copies of documents. Instead, you can just email them to the designated recipients and process speedy transactions online. Moreover, you can save lots of trees and storage spaces. Cheers to a sustainable professional life!
Trust Your Financial Affairs to the Cloud With Unloop
Cloud-based accounting software is a great way to manage your company's finances. It's secure, efficient, and easy to use. At Unloop, we understand the importance of cloud-based accounting. We can help you start with the right software for your business.
The list of bookkeeping and accounting tools that we use include Quickbooks Online, Hubdoc, DEXT, and Taxjar. All of these platforms use cloud-based technology, so rest assured it makes your accounting duties easier, faster, and more time-efficient. Contact us today for more information.