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What Is Cloud Accounting? And How Can It Can Help Small Business Grow?

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What is cloud accounting? Have you ever lost vital business data in your external or internal hard disk? Even if you haven’t, the effort of manually updating the latest data on your work computer is tiresome and time-consuming. However, thanks to cloud based accounting software, securing your business data has never been so easy, flexible and inexpensive.

All you need is a computer with internet connection to automatically back up your business data online. The advancement of cloud based technology is that it allows your data to be securely stored online instead of on a computer hard-disk.

In fact, small business owners that do not know accounting can efficiently utilize cloud accounting technology to grow their business.

What is cloud accounting?

User friendly interface and integration

Usually, accountants accustomed to traditional accounting platforms such as Excel, embark on time consuming tasks to manually create an accounting sheet that befits the particular business.

However, cloud accounting enables small business owners to select accounting software that integrates the specific business records without a manual input. In addition, most cloud based platforms include marketing tools, payment structures and third party add-on's.

The user friendly interface allows small business owners to monitor every aspect of their finance without relying on an accountant for interpretation.

Flexibility

Imagine running your small business while you are on a vacation half way across the world. Since the basic requirement of cloud accounting is internet connection, all you need is a smartphone to check out your outstanding invoices, account balances and latest sales figure. Installation is not necessary since the software is accessed online.

Better decision making

Unlike old fashioned accounting methods where the data is usually filled in after a week, cloud technology updates data in real time. That allows you to know immediately whenever there is an accounting discrepancy rather than to find out a few days or weeks later.

Moreover, the cloud accounting subscriptions fees are relatively low and do not increase whenever the business grows.

Security

Do not worry about losing your data to unforeseen events such as a fire, burglary or a computer virus. In fact, banks often use cloud services to store confidential data yet cases of hacking are very rare due to the advanced security system in place. For those who are not familiar with the system, cloud services offer free customer support such as online training and email inquiry.

LUXA Enterprises specializes in both Xero and Quickbooks cloud accounting implementation and software applications. If you have more questions about the cloud or outsourced accounting services for small business or just want some advice, contact us today!

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Topics: Cloud accounting