The Benefits of Cloud-Based Bookkeeping
Bookkeeping is without a doubt one of the most tedious administrative tasks that consumes a significant portion of small business owners’ time. As they are not aware of the benefits of cloud-based bookkeeping, many small business owners choose to maintain their accounts in excel spreadsheets and fail to harness the power of cloud accounting. When done right, cloud-based bookkeeping frees up small business owners’ precious time to run and grow their businesses. In this blog post, we outline the components of good bookkeeping and the benefits of moving your bookkeeping to the cloud.
What is Good Bookkeeping?
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. The components of good bookkeeping are as follows:
Timely recording of transactions and reconciliation with bank statements
Integration of accounting system with business operations (for e.g. invoicing and purchasing systems and expense claims administration) to ensure data integrity and accurate financial reporting to Accounting and Corporate Regulatory Authority of Singapore (“ACRA”) and Inland Revenue Authority of Singapore (“IRAS”)
Integration with a management reporting system to enhance management decision-making process
Robust data retention policies to ensure compliance with statutory requirement for records-keeping
What is Cloud-Based Bookkeeping?
Under cloud-based accounting, users are able to access accounting data from a web-based interface (i.e. the internet) instead of via a desktop application. This is juxtaposed with traditional accounting, where accounting data is stored in a dedicated hard drive and users can only access the information from a single location.
Make Better and Faster Business Decisions
With cloud-based bookkeeping, you will be able to assess real time information from any device and location to make better and faster important business decisions concerning investment, recruitment, bulk inventory purchases, etc. You can manage cash flow better by monitoring real time information regarding collection of accounts receivables and payments to suppliers.
Enhanced Financial Reporting System
Cloud-based accounting software seamlessly integrates the accounting system with the remaining business operations (for e.g. invoicing and purchasing systems and expense claims administration) to ensure data integrity and accurate financial and management reporting. It also eliminates manual data entry and human error as bank feeds automatically import bank statements into the system.
Share information in different locations with key stakeholders
With cloud-based bookkeeping, you can share key financial information in a timely manner with business partners, employees, and accountants in different locations.
Is Cloud-Based Accounting Right For You?
The security of accounting data recorded in a cloud-accounting system is a major consideration for many business owners. By partnering Xero, who is certified as compliant with ISO/IEC 27001:2013, we ensure that their robust security management program, and comprehensive Information Security Management System (ISMS) will keep your accounting data highly secure. Read more here.
We understand that juggling bookkeeping on top of running your business can be overwhelming at times. If you have any queries on cloud accounting, feel free to drop us a message or email us and let us know how we can assist you. Our general response time is one business day.
