Whether you are running a small business or planning to start one, you are perhaps familiar with cloud accounting. Maybe you are already storing your data in the cloud using Dropbox, Google Docs, Box and other cloud applications. While businesses are increasingly adopting the cloud as an accounting software, for data storage and data sharing in Singapore, many are still reluctant to fully utilize the power of cloud technology for accounting. Some SMEs are still using traditional accounting software that keeps them tied to one PC. If you are not sure whether to switch to the cloud, read on to know the top four benefits of using cloud-based accounting such as Xero accounting software.

Cloud-based accounting software like Xero, enables you to manage your accounts in a better way from anywhere as long as you have access to the internet. Cloud accounting outcompetes traditional accounting in many other ways. Here are some major reasons why your business should switch to cloud accounting at the earliest possible.

#1. Collaboration between team members 

Unlike traditional desktop packages, cloud based accounting software, allows unlimited users to access the same data files simultaneously from different locations. (Xero accounting software allows unlimited users for a single monthly subscription price per organisation) The users can work on the same files at the same time, which helps make collaboration easier. Each user will have their own username and password to access data from anywhere. This, however, does not mean that all members of your team will have access to all your accounting files. You can allow different users to access different files. This helps to maintain the security of data within your organization. For instance, you can allow your marketing team members to view invoices, but restrict them from editing or modifying those.

#2. Round-the-clock access to accounting data

With cloud accounting software, all your accounting data is stored in a virtual server that can be accessed anytime from anywhere, as long as you are connected to the internet. You can access your critical business data even from your mobile devices such as Smartphone or tablet.

#3. Improved data security with automatic data backup

Accounting data is the lifeblood of your business, and you cannot afford to lose it. Your data is never completely secure in a physical device like desktop computer, tablet or laptop. Remember that computers are susceptible to operating system failures, virus attacks and system crash. So you need to backup your data regularly to make sure that all the latest files are stored is a safe place. Taking regular backups is a time-consuming process. However, with cloud accounting solutions like Xero accounting software, you do not have to worry about data backup; the system will maintain data backup automatically.

#4. Cost saving with minimum hardware requirement

With cloud accounting solutions, you do not need to install many physical devices or require a lot of space for them in your office. Moreover, there is no need to invest a lump sum for buying software license, because most cloud accounting services are available on a subscription basis. 

Simply put, cloud accounting allows you to manage your accounts in a better, more organized and cost effective way. Consider using the power of cloud accounting to help your team members collaborate and make better informed accounting decisions for your business. Not exactly sure how cloud computing works? Come and attend our xero training to find out more!