The rise of cloud-based services is changing the way businesses handle their processes, especially accounting. Cloud-based software can be easily used by SMEs and the accounting firm servicing them, or large enterprise business with an in-house accounting department.
Cloud-based accounting provides a means to improve business productivity across multiple functions such as accounts payable and receivable, inventory control, reporting and payroll.
Cloud-based software improves services for SMEs
With the functionality to support any sized business, cloud-based software provides additional value to SMEs than ever before. This is one of the reasons SMEs are adopting cloud computing – including cloud-based inventory management software – at a rapid rate. Cloud technology helps SMEs to become more efficient and organised along with providing the convenience of any time, anywhere accessibility.
Cloud software also integrates with other systems and robust security checks and balances give confidence to SMEs. It is important, therefore, that accountants verse themselves in the specifics of different cloud system offerings to help find the right solution specific to individual client needs.
Where larger businesses have internal accounting departments and capabilities to undertake data analytics, small businesses don’t. With cloud solutions, small businesses are able to access tools that used to only be available to large enterprises. For example, SMEs’ accountants can now work with live data and inbuilt analytic tools to offer quick analysis of that data, enabling them to provide a greater scope of financial advice and services to their smaller business clients. The power to customise systems and permissions for individual clients has expanded with the ability of accounting software to connect clients to web portals and document management systems.
Accountants and cloud-based software
Cloud-based software can influence an accountancy firm’s growth. Recent research by Xero found that accounting and bookkeeping firms with higher rates of growth are the ones with the highest instance of clients using cloud-based accounting software.
Using accounting software means that accountants can concentrate on providing key financial advice and offer a complete service to their clients, including identifying cloud priorities and performance indicators for client SMEs. Ensuring direct, secure data flow.
Accountants, however, need to manage their own internal systems and procedures while having the versatility to understand the numerous business systems and processes of clients.
Cloud software enables accountants to facilitate back-office functions, focussing on account activities such as receivables and payables, payroll, inventory control and taxation advice while allowing business owners to concentrate on their business.
Cloud-based software gives single operator accountants and their small businesses clients, access to capabilities they couldn’t afford before. Allowing both to streamline their business processes.
Cloud-based software trends
The shift to cloud computing will continue to dominate small businesses, providing greater productivity and capabilities and making it easier for businesses and their accountants to work from anywhere.
Automation will provide huge opportunities for auditing, taxation and client accounting services in the future, generating complete data sets, data collection and processing to pave the way for increasingly sophisticated technological data analysis.