5 Reasons You Should Transition To Cloud Bookkeeping

Cloud bookkeeping may have received a lot of traction in North America, but elsewhere, many traditional companies are still using paper documents to keep track of all their bookkeeping.

Despite the many benefits of online bookkeeping and transitioning to a cloud based solutions, many companies are reluctant to make the switch, mainly due to the effort it requires to actually move everything into the cloud.

However, there are a TON of benefits to switching to a cloud based accounting solution and outsourcing to an online bookkeeping firm.

Here are 5 reasons for why you should switch to cloud accounting and having everything online:

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1. Reduced duplicate workload

In traditional bookkeeping, many bookkeepers and accountants are required to enter the same transaction more than once in multiple places.

For example, they might need to enter Transaction A in their books for account reconciliation.

But management also requires them to maintain a cash flow spreadsheet, and thus they need to enter Transaction A again.

Then, management requires them to track expenses going towards Department X, and they then have to enter Transaction A a third time.

This type of duplicate workload can be substantially reduced when you move to a cloud based accounting solution like Quickbooks, as modern accounting software nowadays have third party integrations that reduces the amount of duplicate work required.

2. Real Time Updates

By transitioning to a cloud based bookkeeping service, you'll essentially get all the financial data you need real time.

In a traditional workplace, management only gets the financial data they need on maybe a weekly, bi-weekly, or monthly basis, which might not always be sufficient in a fast paced environment like today's world where things are moving so fast.

When you move everything online, your bookkeeper would enter a transaction and it would get updated and displayed automatically, which allows management to quickly make the decisions they need based on the most recent information available.

3. Paperless

I probably don't need to explain the benefits of going paperless, but imagine if you're a business that has been running for over 10 years.

Just imagine how much paper there would be in 3650 days of bookkeeping!

If you ever needed to look back at what happened three years ago.. Well, you aren't going to know.

But not only this, with a paperless bookkeeping solution, your bookkeeper will be able to work much more efficiently without needing to file documents away.

You'll also be able to access the documents you need remotely from anywhere around the world.

4. Security

In a traditional organization where bookkeeping is still done by paper, there are a LOT of security issues that go along with it.

For example, if there was a fire incident and you don't have a copy of the document stored elsewhere, you'd lose all your important documents and data.

It's also very easy to lose paper documents compared to storing them online.

As your business scales larger, security becomes a much more important issue, which goes to show why so many businesses are quickly transitioning to an online, cloud based bookkeeping solution.

5. Reduced costs

It's much cheaper working with online accountants and bookkeepers, because they do things so much more efficiently.

Many accountants nowadays use accounting software like Xero and Quickbooks, which include a lot of automation tools that help them reduce the data entry required on a month to month basis.

This reduction in time spent on data entry translates to a reduction in cost, which, of course, gets passed down to the client in a free market where competition is stiff.

Conclusion

Online bookkeeping services and the transition to cloud-based accounting solutions is starting to become the norm for both small businesses and corporations alike.

The five reasons above are just some, but not inclusive of all the reasons for which you should transition to cloud bookkeeping.

If you are transitioning to the cloud, consider outsourcing your bookkeeping needs, which is also becoming a norm in today's digital world.

Thank you for reading!