Every successful business has its finger on the pulse. You need to know the key numbers. Not the numbers in last year’s accounts; they’re out of date. Redundant. You need today’s numbers.
And that’s where a cloud accounting system comes in. If you don’t have a cloud accounting system this blog will explain the benefits & how to get started.
There are essentially 4 types of accounting systems:
Type 1: The Manual System – A manual system is cheap; you only have to buy a book. But that’s a false economy. Manual systems simply take too long; data is outdated.
Type 2: The Spreadsheet – Excel and other spreadsheet-based systems are also cheap. While you can automate some processes, they take time to set up, you need advanced Excel skills to produce management reports. You can waste hours changing the spreadsheet.
Type 3: The Desktop system – Then there is the old-fashioned desktop system that come with a host of hidden costs: customization, implementation, hardware maintenance, dealing with software upgrades, and scheduling back up routines.
Type 4: The Cloud Accounting System – In contrast a modern cloud accounting system gives you the following benefits:
(a) It saves you a significant amount of time, (b) It saves money, and (c) you get more value from an accountant or bookkeeper.
In short, a cloud accounting system will make your life so much easier giving you the critical numbers for your business in real time.
Now the bad news…
Your first problem is deciding which cloud accounting system to adopt for your business. There are a myriad of different systems. They are all different. Some are better than others. Some suit different types of business. And getting the wrong solutions will cause you a big headache. Assessing all of the options is time-consuming.
Then, once you’ve settled on the best system for you and your business you have to set it up.
Unless you’re familiar with setting up accounting systems this typically takes a full day or more. Not only do you have to enter all the key details of your business (accounting year end date, sales tax registration number and so on) you also need to set up you chart of accounts (that’s the specific types of sales, income, expenses, assets and liabilities unique to your business). And once that’s done you need to transfer any opening balances.
While you can do that yourself, your time is precious and valuable. So, we recommend you talk to your accountant or virtual financial manager (bookkeeper). Every good accountant or virtual financial manager will be able to set up your cloud accounting software.
We specialize in cloud accounting, so if your accountant doesn’t offer this service we can help. And you don’t even need to be in the same part of the U.S.… we can set it up online for you. We provide cloud setup services nationwide in the U.S.!