8 min read
Cloud accounting is not just a buzzword anymore. It has been recognised as the most efficient way for companies – large and small – to keep their books of accounts in order.
At its simplest, the cloud helps you automate bookkeeping tasks and store all your data safely for any time, anywhere access. And yet, many business owners still hesitate to make a move and manage their bookkeeping with Xero or a similar platform. Little do they know that the cloud is a boon for them – but more on that in a bit.
Are you uncertain about the benefits of the cloud? Are you worried about your sensitive data ‘floating around’ out there? Is migrating to a cloud bookkeeping solution making you anxious? Read on to dispel your doubts and experience the power of the cloud, and feel confident about managing your bookkeeping with Xero:
1. Real-time financial updates
Business owners do not have the time to trawl through pages of bookkeeping data every day. If their company relies on manual books, it means that the owner is not always up-to-date about cash flow on any given day, which could lead to excessive spending or untimely investments.
By doing bookkeeping with Xero, business owners like yourself can get automated real-time updates about where the money is going at any point in time. It takes your accountant only a few seconds to quickly pull up a financial statement.
That means business decisions can always be taken with the company’s financial health in mind. You cannot go wrong with the cloud.
2. Easy collaboration
Migrating to the cloud is helpful if you have an external accountancy practice looking after your business accounts.
One of the main pain points of outsourced bookkeeping is the need for follow up. While many business owners complain that the accounting service providers are not providing timely updates, accountants also have to keep chasing clients for essential documents or approvals.
With Xero being on the cloud, everything is stored on a central information hub that accountants and clients can access whenever they wish. They can also work on documents in real-time, from wherever they are located, without having to resort to back-and-forth emails and calls.
3. Instant backups
Backing up accounting data can be a pain, especially when it takes hours. However, doing bookkeeping with Xero or a similar tool means you will automatically keep backing up your data on the cloud. So – no more downtime!
4. Constant improvement
With traditional desktop-based software, you are usually stuck with that version unless you pay extra for an upgrade – and those tend to be on the expensive side, too.
However, when you switch to Xero, you get the benefit of automatic upgrades as and when they come up with them, without the need to pay more.
Plus, many service providers like Xero will take feedback from their users and add features that are in popular demand. So in a way, you get to co-create your accounting software’s next version!
5. Date security
If you are concerned that moving to the cloud means your critical business data is floating around on a cloud for anyone to hack into, you could not be further from the truth.
Cloud service providers employ the highest security measures to ensure that your data is always safe, even if you are accessing it remotely. Plus, even in the unlikely event of a breach, the service providers can help you recover your data with their backup system.
6. Time management
For your accountant, cloud accounting systems are a blessing in terms of time saved and tasks automated. No more painstaking manual data entry for each transaction – accountants can simply upload your bank statement and let the software do the rest.
Modern cloud accounting tools also come with other valuable add-ons, such as automated cash flows and document workflows. In short, cloud tools free up your accountants to take on more strategic projects for your business, thus using their skills meaningfully while also helping you stay on top of things from an accounting perspective.
Why doing bookkeeping with Xero is the best option
You have decided to move your accounting to the cloud. Congratulations! There are several excellent cloud software providers to choose from, but Xero stands out from the rest in many ways. It has won several awards over the years and has over a million happy subscribers.
And if that is not reason enough to sign up, here are a few reasons why you should do bookkeeping with Xero:
1. Easy to use and time-saving
Xero set-up is a breeze, and new features and updates keep getting added automatically. You can store all your documents online, so no more sifting through and organizing paper records. From recurring invoices to payroll to bank statement importing, Xero helps you do everything automatically and thus saves your valuable time. Bookkeeping with Xero is actually hassle-free!
Xero saves you time by connecting to your bank and importing transactions every business day, which you would otherwise spend on manual data entry. Having automatic bank feeds allows you to reconcile on a daily basis, and your accounts always provide an accurate, up-to-date picture of your business finances. Who does not want to have key numbers at their fingertips?
2. Easy to navigate and collaborate on
How to use Xero software? Xero scores high on user experience and interface design. Every feature is easy to access, and the layout is clean and attractive. In addition, Xero integrates seamlessly with over 700 apps and tools. So no matter what systems you used before, Xero will fit into your workflow and help you make running your business smooth.
3. Real-time information
The dashboard offers real-time updates that make cash flow management a breeze. Leverage its powerful reporting capabilities to get a clear picture of your business accounts. For instance, you can quickly create reports for tracking your accounts payable.
It has a set of standard reports for P&L, VAT, and balance sheet and the functionality can be further enhanced by integrating third-party tools such as Spotlight or Fathom.
Xero basically acts as the financial hub of your entire business and gives you a real-time view of finances – regardless of where you are and from which device you are accessing the cloud platform. Doing bookkeeping with Xero is painless.
4. Excellent support
You do not have to be a professional Xero bookkeeper to make full use of the tool. Xero Central offers a wealth of helpful documents, training materials and tutorials for when you need some assistance. And if you want more input, their 24×7 email support team is among the best out there. Xero has a history of taking feedback from its users and incorporating upgrades based on what people want.
5. Get paid faster
Late payments are a massive concern in the UK. Research shows that 1/3rd of invoices are not paid within the agreed terms. So, if you want to avoid cash flow problems, do bookkeeping with Xero, as it is specifically helpful for sorting out your accounts receivable.
Xero can help you get paid up twice as fast by simply connecting the platform with payment tools like GoCardless, Stripe, and others. This allows you to add a “pay now” button to your online invoices and send PDFs directly to the client’s email.
What’s more – you can also see when an invoice has been opened by the client, thus making tracking and following up a lot easier for you. It is your money. Xero enables you to stay in control of how and when you are paid.
And if you offer recurring services, you can set up an automatic payment collection process for repeat customers that directly sends invoices on the due date.
6. Unlimited users
Doing bookkeeping with Xero has another advantage. There are simply no limitations on the number of users you can add to your accounts. In addition, your data is stored securely on a cloud server and is heavily encrypted. As you scale up, you can keep increasing the number of users.
Over to you
In conclusion, the cloud offers manifold benefits for accounting in terms of time saved and the accuracy of financial decisions. Xero is committed to making business accounting a hassle-free and straightforward process, and it has consistently lived up to its promise.
Therefore, if you are contemplating moving to the cloud, do the right thing and sign up to manage your bookkeeping with Xero. And if you are looking for expert Xero accountants in Essex, let us help you! Please reach out to us for any queries regarding accounts preparation, taxation, payroll, VAT, and bookkeeping. Unburden yourself!