As the digital world continues to expand, so do the opportunities to streamline internal processes. In fact, cloud-based software solutions are becoming more and more common. As a result, businesses can enjoy a variety of benefits by utilizing cloud-based accounting software. From saving time and money to improving efficiency and cash flow management, incorporating cloud-based solutions will have a positive impact on your company’s performance in all areas of accounting. Read on to learn more about the five benefits of using cloud-based accounting software.

1. Reduce manual data entry

If your organization is still manually entering data into its accounting software, you’re missing out on the biggest advantage of cloud accounting. While on-premise software requires you to manually enter all financial data into an application, cloud accounting software allows automated data entry. With an automated data entry tool, you can quickly import financial data from your core accounting system and feed it into your accounting software. This process saves time, increases accuracy and reduces the risk of data entry errors.

2. Auto-sync data between platforms

If your business uses more than one accounting software platform, you know the hassle of manual data transfer. To stay on top of all accounting activities, many organizations rely on different accounting software platforms to manage different parts of their accounting process. With each platform managing a different aspect of accounting, companies need to manually transfer data between platforms. This is not only costly in terms of accounting for time, but the risk of human error is also high. Fortunately, cloud accounting software allows for automatic data transfer between platforms. This ensures you have the most up-to-date data in all areas of your accounting process.

3. Streamline collaboration

If you’re using traditional accounting software, you’re automatically limiting your organization’s ability to collaborate. With on-premise software, team members must be physically located at the same office as your accounting department to access the data and reports they need. Cloud accounting, on the other hand, allows you to access data remotely. This allows each member of your organization to access accounting data from any computer with an internet connection. With cloud accounting software, every person at every location can easily view data, collaborate on projects and generate reports when they need to.

4. Track key performance indicators (KPIs)

If you’re tracking KPIs, you already know that accounting has a significant role in these measurements. With cloud accounting software, you can easily track and manage KPIs. You can also create automated workflows to help ensure data accuracy and timely processing. With cloud accounting software that integrates with your other business applications, you can easily track KPIs and ensure your accounting system is feeding the data you need to make informed decisions.

5. Automate recurring tasks

With cloud accounting software, you can create automated tasks to help improve efficiency, save time and reduce the risk of human error. For example, you can create an automated task to create and send a new vendor payment every time you receive an approved purchase order. This helps ensure you always have the latest data, keep vendors informed and stay on top of your company’s financial obligations. You can also automate recurring tasks like creating and sending out a payroll report. This allows you to quickly and easily stay on top of all payroll activities and make adjustments when necessary.

From saving time and money to improving efficiency and cash flow management, incorporating cloud-based solutions will have a positive impact on your company’s performance in all areas of accounting.

Conclusion

Cloud accounting software puts a wealth of benefits at your fingertips. By choosing this type of online accounting software, you can reduce manual data entry, auto-sync data between platforms, streamline collaboration, track KPIs, and automate recurring tasks. With cloud accounting, you’re guaranteed ease, efficiency, and cost savings.