Benefit#3: Collaborative accounting
Because users are connected over the internet, they can collaborate on the same files with more flexibility, communicate more efficiently, and overall work together more efficiently.
Cloud accounting software like Xero easily integrates with popular online solutions like Shopify, Amazon, Zoho, Stripe, Salesforce, etc allowing for multi-platform collaboration.
Benefit#4: Integration with Third-Party Apps
For almost every business today, operations are being managed through online platforms like Microsoft Outlook, Google Contacts, Mailchimp, Hubspot, Amazon, Shopify, and so on.
If you’re using a traditional accounting software, the flow of real-time information between these platforms and your accounting software will be limited. But with cloud accounting software, everything is streamlined because all real-time information can be synchronized and managed in real-time.
Benefits include accounting for payments made through Stripe, Paypal or an equivalent payment processing software, synchronizing bookkeeping with Hubdoc integration, connecting your Shopify/Amazon account to manage accounting for orders in real-time, and so on.
Benefit#5: Time-saving through automation
Cloud accounting solutions like Xero have multiple efficiency gains over traditional accounting software through automation. Our favorite three of these?
1. Automating bank feeds
Xero can automatically import bank transactions and categorize them, saving hours of manual data entry work.
2. Invoice automation
You can create electronic invoices with payment deadlines, create recurring invoicing tasks, and get automatic alerts and reminders without a lot of administrative tasks required.
3. Expense tracking
Xero can automatically track all business expenses, notify you based on custom alerts you create, and make sure all expenses are efficiently tracked without any manual labor required.
Benefit#6: Real-Time Reporting and Insights
Real-time access to financial information allows cloud-accounting solutions like Xero to analyze information in real-time and provide up-to-date reports anytime your business requires it.
You can even get insights into the most recent status of accounting functions for your business by analyzing data in real-time. On the other hand, traditional accounting solutions are limited in their ability to do this because they store and process information on local machines.
Benefit 7: Scalability and Cost-Effectiveness
As your business grows and you need more out of your accounting software, you only need to upgrade your subscription plan with a cloud-based solution.
With traditional accounting software, it might require changing the software you use or long software installation/upgrade times. This makes solutions like Xero more scalable and efficient to use in the long run.
The subscription-based model also makes cloud accounting solutions more cost-effective. You only pay for the features and number of users you need, and there are no long lock-in periods or high upfront costs involved.
Understand your cloud accounting needs with Caltrix
Traditional accounting software works, but it doesn’t stick the landing quite right like cloud-based solutions like Xero. With multiple advantages like being more cost-effective, scalable, enhancing collaboration, being easy to use, and so on, cloud-accounting software is the way to go.
If you run a business and are wondering what exactly you need from your accounting software, reach out to us and get professional help.
We help you shift your accounting operations to the cloud, and are a certified Gold Xero partner in Malaysia. Book a session with our team here and get started today!
