Date
07 Feb 2024Category
Having up-to-date financial data is crucial to running your business effectively. This is where a best-in-class cloud accounting system plays a pivotal role.
Instead of waiting until the end of the month – or even worse, end of the year - when your accountant does your accounts, cloud enabled software and mobile apps give users access to instant information about business performance and allows them to monitor progress against overall business strategy. This valuable insight can help you meet your business goals, grow your business and save you time to focus on what really matters.
So, what are the key features that cloud accounting solutions provide and how can these enhance your business and give you time back?
Most cloud accounting software providers have integrated bank feed systems linking your business bank account to your cloud software, enabling you to see and process bank transactions as they happen.
One major advantage of linking your bank feeds with your cloud software is the ability to streamline and automate your bank reconciliation process, which saves a huge amount of previously manual processing time, improves accuracy, and lets you see an updated financial picture of your business in real time.
Cloud accounting solutions allow businesses to see exactly which stage of the invoicing process their customers are at by providing detailed reports of when invoices were created, sent, viewed by the recipient, and paid. This improves customer experience and reduces the burden of chasing invoices.
Cloud platforms offer several easy ways for your customers to pay such as “click here to pay” links on invoices, mobile payment apps or open banking transfers, and will also send automatic reminders and chasers to customers of what's still due.
Data compiled by Xero shows that businesses that fully utilise simple invoice management features within cloud software and payment services such as ‘GoCardless’ get paid on average 14 days faster, reducing cashflow headaches.
Perhaps one of the more obvious features of cloud accounting software is the ability to provide standardised and customised, financial reports in an easy to read format, including graphs and charts.
Not only can you view these reports instantaneously, through apps or a web browser, but they also allow you to drill down to the underlying transaction by simply clicking through a number or chart element – making it much simpler and intuitive to understand what is driving the numbers.
Your digital dashboard allows you to visualise and interpret reports in several ways, enabling patterns, trends and insights to be identified which increases your ability to make more informed decisions.
Customisable and detailed information can assist you in linking your business’ performance to your strategic goals and KPIs, allowing you to identify areas of opportunity as well as areas that require improvement.
A significant advantage of cloud-based accounting software is that it can help you stay ahead of your business’ cashflow situation.
Knowing how your cash reserves will be at certain points in the coming weeks and months allows you to plan ahead to ensure your business has the necessary contingency plans in place to safely navigate any unforeseen challenges.
Cloud accounting systems have basic cashflow forecasting tools embedded and these are readily enhanced through easy to integrate add-on cashflow forecasting and management apps. It has never been easier or more cost effective to stay ahead of your cashflow worries and get back the peace of mind you are in control of your business.
If you have any questions in relation to implementing cloud accounting software solutions or making the most of the myriad of features, please get in touch with a member of our specialist Digital Delivery team or your usual advisor.
