Defined as accounting software that is held on an isolated server and not installed on your devices or done by hand, cloud-based accounting software is often the first thing people think of when you say “cloud-based”… and for good reason!

In this article, we’ll look at cloud-based accounting software and how it works, how to choose the right one, and how cloud-based accounting software streamlines your business when used right.

What is Cloud-Based Accounting Software and How Does It Work?

Cloud-based accounting software is software found on the Internet rather than on your computer’s hard drive. It is also commonly referred to as “online accounting software” or “web-based accounting software”. Whichever one you choose to refer to it as, cloud-based accounting software offers both flexibility and affordability, allowing you to focus on your needs both at work and at home. 

How does it work? In short, user data is sent to the cloud to be managed and, once this process is complete, the data is sent back to the user within minutes. 

Because it’s available on-demand on the Internet, you can access it on the go, making it particularly helpful for small businesses and/or mobile businesses.

The Benefits of Using Cloud-Based Accounting Software for Your Business

No matter your industry, there are a multitude of benefits to using cloud-based accounting software to keep track of your business finances. 

To name only a few, it is cost-effective, saves time, and is environmentally friendly. Paper trails such as receipts and invoices not only cost money, what with buying the paper and ink required to print these two business devices, but they also use a great number of trees. 

One of its biggest draws is its ease of use. By using online accounting services, the submission of receipts and distribution of invoices is made easier for you, your team, and for your clientele. Furthermore, this accounting software allows you to keep tabs on your account activity, namely heightened clarity and ensuring that your account funds are not exploited and used in ways that have the potential to harm your business. 

How to Choose the Right Cloud-Based Accounting Software for Your Business

There are a number of cloud-based accounting software available. Software like HubDoc, Plooto, and WagePoint are used primarily by small businesses for their accounting purposes.

Our number one choice for accounting software? Xero. Xero software allows:

  • Shared access to business numbers so everyone is on the same page
  • Connection to 500+ Xero applications
  • Customer connection: sending invoices and online payments
  • Link to your bank accounts
  • Tools like payroll, fixed assets, expense claims, budgets and complete financial reporting
  • The flexibility to log in on your Mac, Windows, iPhone or Android

This software is used by business owners just like you across North America and is easy to set up an account and start using right away.

How to Get Started with Cloud-Based Accounting Software

What’s the easiest way to get started with cloud-based accounting software? By working with a virtual accountant, of course.

Since virtual accountants are well-versed in software like Xero, they should be your go-to for frequently asked questions, tips on how to maximize your accounting software usage, and any troubleshooting concerns you may run into.

Once you’ve become familiar with cloud-based accounting software, you can use it anywhere that you can connect to Wi-fi. You’ll never go back to spending your lunch breaks going back and forth between the bank and the office, and if you have any questions or require assistance, a virtual accountant is just a phone call or text message away.

Start Using Cloud-Based Accounting Software to Streamline Your Business Processes Today

Now that you have more knowledge of what cloud-based accounting software is and the different benefits it can bring to small-to-medium sized businesses like yours, are you ready to use it for yours and save yourself time and money? 

Get in touch with us today to set up a consultation and find out how we can help you with your business goals.