Having online access to bookkeeping and accounting is now almost a prerequisite for SMEs. The software is suitable to all type of business sectors, the ability to access your accounting software on most devices 24 hours a day makes it an essential tool.
Before you start this venture, it is important to discuss it with your accountant who can identify your needs and recommend a software that will be suitable for you. Below are the main points to consider when choosing the right software for cloud accounting.
Before you start, be sure to outline exactly what you want from your software and what you want to be able to do. There are plenty of providers out there which provide free trials and offer additional add-ons such as payroll and reporting modules. If you know what your objectives are, you will avoid signing up for modules you do not need.
Most businesses already have an existing e-commerce platform, it is important to consider how that will integrate with your chosen cloud accounting software. Or you may decide to take this opportunity to update all your additional software. It's important that the users of the software feel comfortable with the user interface and the ability to customise the dashboard to suit their needs.
It is important to check the internet requirements before you sign up to a software. The broadband speed can make a difference to the speed at which you can enter and access information which in turn will affect productivity. You need to also explore any offline options the software offers.
The pricing of the software can be misleading with initial discounts offered by the software companies. It is important to know what is included in the package and relatively easy to become bamboozled by pricing structures when searching for the right software. Make sure you know what';s included in your package. That way you will avoid any nasty surprises, and won’t have to pay for any additional add-ons that you thought were included. Monthly subscription seems to be the most popular method. It is not that difficult to change providers and be able to export your data. It’s important to factor your accounting costs into the cash-flows, and make the most of any savings.
It is important to undertake as much training as possible before and when you start using the software. Video tutorials are very popular and can be extremely useful which you can watch in your own time. It is important that support is offered you need to consider if email support will be sufficient or telephone support will be better for you. It is always advisable to discuss any complicated transactions with your accountant. It’s important that you utilise the benefit of having all your data readily available and up to date.
A majority of cloud accounting packages have the facility to raise and retain copies of sales and purchase invoices. Some also offer apps that let you record payments and take photos of invoices. The savings in efficiency, postage and storage cannot be underestimated.
Security is always a concern when it comes to cloud accounting. However, storing your data in the cloud actually increases your levels of security since the data resides in the cloud rather than on your hard drive. Most cloud accounting packages also involve a twostep login using a random code generator (like most online banking) meaning that should someone hack your password the data is still inaccessible.
A common mistake when moving to cloud accounting software is to consider it only from a finance perspective. The reality is that there are several efficiencies that can be made beyond finance, whether that's stock control, point of sale or CRM. It is of paramount importance that you avail all the opportunities that are offered by the accounting software.
Please contact us to start your cloud journey.
By Omar F. Siddiqui