by Charmel Flemming
Adapt or die. That was the theme for businesses throughout 2020 and 2021. If it has taught us anything, it's that businesses and companies who took the chaos, uncertainty and vulnerability of the last two years and turned it into opportunities to learn, pivot and regroup were the real survivors of the pandemic onslaught.
Numerous businesses closed and multiple jobs were shed, due to various factors including, poor systems that couldn't cope with the sudden and inevitable changes. Companies have had to become agile, implementing lean processes as a result, and this is the new normal.
One way to achieve a lean, agile approach in your business is through cloud accounting. Access your data in real-time, streamline your processes, store everything in one place, control access to information, and cut down on unnecessary expenses incurred.
The Future Is Now
Cloud accounting (or online accounting) has the same functionality as desktop accounting but moves the complete process to the cloud and expands upon it. Your business's books are kept online and can only be accessed by those with login details. All information is encrypted, much like online banking, ensuring maximum protection of your sensitive information.
Cloud-based accounting not only moves your accounting information into the cloud. It also alters how you access your data and information, how you interact with documents, your communication with your accountant and collaboration with other team members or stakeholders who have access to the online portals. With cloud accounting, you have peace of mind by knowing that no load-shedding, hard drive crash or Y2K apocalypse can hinder your data. You have access to your files no matter where you are in the world, from any device you sign into and at any time. Another great benefit is that the data you are viewing is always up-to-date, so you don't have to wait on your accountant or bookkeeper to send you a report that has already aged by the time you receive it.
The great thing about living in 2021 is that technology is so advanced, anyone can utilize cloud-accounting technologies for their benefit, starting today. Platforms like Xero, Sage, QuickBooks and FreshBooks, are making it easier than ever - for small businesses to own their finances, collaborate with their financial service providers and generate an instant overview of their business's financial standing. This agility allows business owners to make informed business decisions quickly and accurately.
Intelligent solutions can help you run your business smarter, allowing you increased time to focus on things that require more energy like customer relationships, growing and scaling, product testing and ensuring your employees are happy. In this anxious time, we find ourselves - smart innovations can surely alleviate some of the pressure and overwhelm that we as business owners often experience.
7 Benefits Of Cloud Accounting
Instant access. Access your online portal from any device instantly. Whether it is your phone, tablet, or laptop, you can sign in on the go without being tied to a physical space.
Environmentally friendly. As all your documents are scanned and uploaded to the cloud - or even created online - you can be proud of decreasing your carbon footprint with less paper and ink wastage.
Maximum security. You can sleep easy at night knowing that your data is stored safely in the cloud. There is no chance of fire damage, theft, or even accidental loss. Cloud-based software companies invest millions each year in security infrastructure to ensure your data is safe and prevent any malicious breaches. There are also constant improvements to cloud-based platforms to guarantee secure access like two-factor authentication and biometric logins.
Time saved. Having all the information ready at your fingertips helps you save time from; sending back and forth emails requesting reports, printing out documents, making copies and meeting your accountant in person because you all have access to the same information making a virtual call sufficient. With features like scheduling recurring invoices, you can ensure on-time payment with minimal effort.
Transparency. The simplicity of modern cloud-accounting software makes it a favourite amongst small business owners. Say goodbye to only possessing the information your accountant or bookkeeper shares with you and not even being sure it is an accurate reflection. With cloud technology, everyone has access to the same information so that all relevant parties are held accountable and can pick up on errors more effectively.
Low maintenance. Gone are the days of heavy binder files, storage cabinets, heavy-duty printers, and costly ink. Everything happens online including, creating, sharing, and storing documents. Your subscription to any cloud accounting software also automatically renews. The only maintenance would be to make sure you update your software regularly as the service provider recommends.
Collaboration. 2021 has seen a massive uptake in online collaboration tools and many software platforms and programmes introducing improved methods of virtual team collaboration. Cloud accounting allows you to collaborate in real-time with your team or accountant and bookkeeper, allowing you as the business owner to be more involved and learn more about your business.
Remote. Rewarding. Reliable.
In conclusion, cloud accounting may seem daunting, but most software platforms function with the business owner in mind. Easy-to-understand layouts, helpful prompts, and the availability of support personnel make it easy to do it yourself. However, access across the board, real-time data and multiple logins help improve collaboration between business owners and their accountants or bookkeepers. Bid farewell to outdated processes and say hello to the future of running your business.
Charmel Flemming founded F Twelve in South Africa, fuelled by the desire to ease the burden of small and medium businesses and only the slightest hint of FOMO in the accounting space. An experienced Chartered Accountant with corporate experience primarily within the Mining Space, she focuses particularly on the areas of Risk and Governance. In her professional and personal capacity, she has taken on a number of Board / Trustee positions in order to enhance this knowledge area. Charmel is particularly strong in roles which require ‘big-picture’ thinking. She enjoys working in an entrepreneurial environment and seeks opportunities that leverage both her technical competence with her entrepreneurial inclination. Charmel accepts non-executive director positions of listed and unlisted companies. She is a “critical friend” and acts in the interests of the company’s stakeholders.
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Are you an entrepreneur or small business owner who feels like there aren't enough hours in the day? Do you feel so bogged down with daily tasks that you can't get around to implementing strategic plans in your business? Do the phrases "accounting", "tax submission", "compliance", "forecast" make your skin crawl? Don't worry; this is not one of those tiresome infomercials.