Not so long ago, businesses only had the option of storing their accounting records in the form of hard copies in their filing cabinets under lock and key. These records were easily lost and hard to find.
During the tech boom, we saw companies store their data on centralized hard drives. This eliminated clutter and made it easy to find your files. However, storing your data on a centralized server (especially financial data) can expose a businesses confidential information to hackers and even losing all of the data completely if that server goes down.
Both situations required a bookkeeper for manual entry and an accounting to view and analyze the data that was entered by the bookkeeper. This required a lot of man hours, with little room for error.
We are now seeing more companies store their data on the cloud and even conducting their accounting through cloud services.
What is the Cloud?
Put simply, the cloud is a database connected to the internet. This database is fully encrypted, accessible by you and by anyone you give permission to. The cloud is used to back up data already stored on a centralized server, and even used as the sole storage method by some businesses.
What is Cloud Accounting?
Cloud accounting is accounting that can be done remotely by integrating data stored on the cloud with accounting software that is readily available. QuickBooks is one of the big players in this space.
If a company integrates their bank account and credit cards with QuickBooks, all the transactions that the business has can be easily recorded in QuickBooks. This information then can be easily analyzed by the accountant, saving the business lots of time and money that can go into manual entry for the books. The data can quickly be reviewed and recorded giving the business owner and his/her accountant the power of viewing the financial state of the company in real time, all in one application.
Why Do I Need Cloud Accounting?
Some businesses spend hundreds to thousands of dollars per month on bookkeepers, depending on their size. With cloud accounting products, you can reduce the need for an in-house bookkeeper and outsource your bookkeeping for a low monthly fee. Cloud accounting can help you get organized financially as a business quickly and cheaply so you can receive some sort of financing to grow your business.
Cloud Accounting saves you time and money. But most importantly, it gives you a better chance to grow and scale your business.
How Do I Get Started?
1) Sign Up with QuickBooks
The first step would be to sign up for a cloud accounting service. We recommend QuickBooks. Right now they have a special offer of only $10 a month for their basic package. Consider talking with April to see what level of QBO may be right for your business.
2) Link Your Accounts
The next step is to link all of the bank accounts and credit cards that you use for business transactions, so they can be automatically be recorded on your account.
3) Find an Accountant
Some smaller businesses are capable of managing their own books, but it is usually worth bringing on a QuickBooks Pro-Advisor to do the accounting to make sure things are posted correctly, handle the reconciliations, and prepare the financial statements and tax forms.
If you would like to work with us, you can view April Miller’s QuickBooks profile here.
To learn more about April, visit the About Us page.