What is cloud-based software?
Cloud-based software, or cloud technology, is becoming part of how most people store and access their information, especially now that more people are working from home. The term “cloud-based,” refers to how data is stored.
Cloud-based software applications store the bulk of the information (documents, files, etc.) on the internet rather than on the local computer’s hard drive. Doing so means that team members can access the information from any device or computer, wherever they are – as long as they have an internet connection.
Why use bookkeeping services that embrace cloud-based software?
Jonathan Carter, CPA, CMA, and Principal Accountant of KATA Accounting Solutions Professional Corporation says that there are many benefits that come with adopting a cloud-based system for bookkeeping and accounting. Organizations can:
- Save time
- Improve information
- Communicate better
- Document faster
- Protect intellectual property in real-time
- Make happier teams
“Using technology to organize your information can also result in better recordkeeping with less time required. If the owner of a small business has delegated these tasks to a team member, time savings can go towards more valuable tasks such as financial analysis.
Analyzing financial performance in the cloud helps the accountant identify threats and opportunities for small business owners in real time,” explains Jonathan. “If the owner is doing it themselves, these tools can make the job faster and easier than in the past.”
How does small business use cloud-based software for accounting?
Most businesses start with a cloud-based organizational system like Microsoft Office or Google Workspace. From there, they add cloud-based software for accounting.
Jonathan explains, “The foundation of all cloud-based accounting ecosystems is the accounting application. When selecting a platform, it's important that it can connect to tools that will help satisfy specific needs without too much difficulty. We recommend QuickBooks Online and Xero as the accounting applications. Accounting ecosystems are complemented by data processing applications such as Dext and Hubdoc, which perform data-extraction and data-entry tasks with great speed and accuracy.”
“There are thousands of apps available that can integrate with Quickbooks Online and Xero,” Jonathan continues. “When systems are designed and integrated correctly, and the systems are used appropriately, time savings equal money savings. For instance, the basic connection of bank feeds to accounting software - something all of the cloud-based platforms provide - presents significant time savings in data entry.”
Virtual accounting firms in Canada can help
Feeling overwhelmed? Don't want to make a transition? There are many benefits that make the transition worthwhile, like saving time and making more money. Of all the virtual accounting firms in Canada, KATA Accounting Solutions PC is headquartered right here in Orillia - #shoplocal and enjoy the benefits of cloud-based software.
“One of the key differences between cloud-based software systems and traditional systems is the ability to handle larger volumes of data in less time. By making the user experience easier, it is easier for businesses to stay up to date and avoid the pitfalls of falling behind,” says Jonathan.
Working with cloud technology also allows team members to enjoy a better quality of work life, which is important to Jonathan and his team at KATA Accounting Solutions PC. “Our team loves having schedule flexibility, work-life balance and the ability to work from anywhere. Recently, one of our team members spent three months abroad while only taking eight vacation days for family time. Last week, I had meetings with customers in Europe and Mexico. Without cloud technology in place, these would not have been possible,” he says.
Read more about the benefits of cloud-based bookkeeping technology for your small business today. KATA Accounting Solutions PC is here to help small businesses embrace change as an opportunity - visit their website or call 1-800-491-4803 to take your business into future success.