The benefits of cloud accounting
Last updated on 22 April 2022
As the digital age progresses, more companies are embracing cloud accounting services that integrates a whole range of benefits that traditional bookkeeping cannot provide. With the advances in technology, cloud accounting has become more affordable and ubiquitous in companies providing accounting services in Singapore. Below are some benefits that may help convince you to embrace the future of accounting.
Set once, use forever. Cloud systems provide the ability for accounting to integrate with systems of other parties, so that data can be exchanged freely. One such feature would be automated bank feeds, which enables information of bank transactions processed to be mapped directly into your accounting system, replacing the need for manual work.
Intelligent features are also built into modern accounting systems to enable efficiencies and reduce the risk of errors in the routine work. One such feature is the logic systems, or memorisation features, which allow the identification and matching of connected and similar transactions. Thereafter, these systems propose entries for current transactions, bringing about more efficiency. Through these intelligent features, the need for manual work is reduced, which in turn, frees up resources to focus on other more constructive tasks.
Your data will be secured behind the multiple levels of security of the cloud accounting services provider. You are also able to set multiple level of access rights for different levels of staff so only authorised personnel can access sensitive information. Your data is also regularly backed up in the cloud so a lost or damaged laptop will not cause you to lose your financial records.
Real Time Updates and Invoicing
With cloud accounting, you are able to see real-time updates on your financial position, your invoicing situation and your accounts receivables. As most services provide access on mobile applications, you can even invoice a customer on-the-spot when you close a business deal. You can also access all your financial data while on-the-go, thus reducing lag-time and improving efficiency.
Scalability and Flexibility
As your business expands, it becomes a challenge if your accounting system cannot match your expansion. Cloud accounting offers the flexibility to customise the offerings to match your business needs. More features can be added or reduced when the need arises.
With all your data being stored in the same place and everyone using the same data source, it becomes easier for the various departments in your company to collaborate. Gone will be the days when there may be missed communications or instructions that may affect a business deal. Even if you outsource your accounting services in Singapore, cloud accounting will help you reduce the paperwork you need to provide your service provider.
The advance technology used in cloud accounting software will be able to support your compliance requirements. One such example is the GST enhancements in Xero system, which now has enabled customisation of transaction reports, so that users would be able to sort and group transactions by the fields required by IRAS. Xero has also announced that their teams have already started working on direct filing of the GST forms with IRAS.
The nature of cloud accounting systems allows them to be able to integrate with systems of other parties, which means that there are much more opportunities to further streamline and build more efficiencies in your business processes. This mean that as these systems continue to advance, compliance processes such as those of XBRL, GST compilation and corporate tax are very likely to improve. With automation of calculation already baked into the software, you will reduce the error rate of your compliance obligations.
Reduce Upgrading Cost
As cloud accounting services are subscription-based, you will always be using the updated version of the software. This will reduce costly upgrades in the future as well as the integration cost should your old software become incompatible with the latest version.