How the Cloud Accounting is disrupting Accounting Industry in 2022
Cloud accounting strategy can transform your bookkeeping process, simplify your financial administration, and give you a real-time overview of your key numbers. There are so many options available, how can you choose the right one for you? This article will help you understand the key benefits of cloud accounting and provide advice on which platforms might be best for you.
What is Cloud Accounting?
It is not difficult to track the historical financial performance of your small business by recording its income and expenses. Accounting software, which allows finance teams to track and record the money entering and leaving the company, has existed for many decades. Double-entry bookkeeping is a tradition that has been in existence for centuries.
How does cloud accounting help? Let’s look at some of the key differences.
Traditional accounting software
Before the cloud, accounting software was mostly desktop-based. This meant that the application was installed on your desktop computer and ran from there. There are a few drawbacks to this approach, such as limited access to your data and the need for continuous software updates. Also, it is expensive to back up all financial information.
Cloud accounting software
Cloud accounting (or online account) offers all the functionality of desktop accounting but pushes the entire process to the cloud. Cloud accounting is not a desktop application. Instead, you log in to an online service that provides the most up-to-date information and all your data are stored on a secure cloud server. Open APIs are a feature of most cloud platforms. This means that third-party software can be connected to your system to add value to your business. Pimaccounting – the leading accounting firm in Bangkok offers a full range of cloud accounting implementation according to your business model and accounting process.
Cloud Accounting Benefits
The cloud is a big step forward in financial management. It removes many of the costs and drawbacks of traditional accounting. How does cloud accounting help your business?
These are some of the areas where cloud accounting systems can add real, tangible value.
You can access your accounts from anywhere, your office or in a co-working space in Bangkok.
Cloud accounting allows you to access your business numbers 24 hours a day, anywhere you have internet access. This eliminates the need to use a central office-based computer. You can log in from your laptop using a web browser or by downloading the mobile app from your provider to access your accounts.
Access to real-time data
Real-time reporting is possible by keeping your bank reconciliation and bookkeeping up-to-date. You don’t have to look at old reports that are weeks or months out of date. Instead, you can get a quick overview of the current financial situation of your company. This gives you a real-time overview of the company’s financial position. It is crucial when planning future spending, looking at cash positions and making major financial and strategic decisions for your management team.
Access to the app ecosystem
Open APIs allow you to add third-party apps or tools to your core business system. There are many options available, including cash flow forecasting tools, online invoicing apps and industry-specific project management software. These tools allow you to save time, reduce resourcing expenses, identify potential problems earlier, and alleviate the burden of unneeded admin that is weighing you down.
Live feeds from the bank
Cloud accounting platforms often offer live feeds that allow you to connect your banking with your accounting. A live feed pulls bank data directly into your accounts, instead of manually entering each line on your bank statements or uploading a file from your internet banking portal. This allows you to quickly reconcile your bank accounts and provides a better view of your bank balance.
Always using the most recent software version
You always have the most current version of your accounting software when you log into your cloud-based platform. You don’t need to wait for costly and time-consuming updates. Simply sign in and get started. You don’t even have to apply security patches – your software provider will do that automatically.
Secure data sharing
Cloud accounting software allows you to easily grant access your accounts when you are working with an accountant, bank, or other advisers. Cloud accounting software eliminates the need to send emails or use USB memory sticks. All your financial information is available to your advisers in real-time, which allows them secure and safe access. This makes it faster, safer, and gives your advisers all the information they need to help and advise you moving forward.
Online payment via connection
GoCardless is a payment app that can be connected with your online accounting and invoices. This allows customers to pay you instantly, speeding up payment times, and reducing admin burden for you and your staff.
Cloud Accounting: When is it best for your company in Bangkok?
Cloud accounting is a great way to get the most out of it. You can make the most of the digital connectivity and real-time data that the cloud provides.
Cloud accounting’s enhanced real-time data capabilities make it ideal for businesses that need quick access to financial information, key performance indicators (KPI) metrics, and management information. There are many options for building apps and customizing business apps, with almost all platforms providing an API.
Cloud accounting can be used in the following areas:
Automation can be used to reduce workloads
Cloud accounting ecosystem allows automated bookkeeping, automatic cash collection, and automated bank reconciliation. This drastically reduces your admin workload.
Get more insights from your financial data
You and your team can instantly access financial intelligence and real-time reports to help you make informed and sound decisions.
Online payment of VAT and GST
A cloud accounting platform makes it much easier to pay your taxes. All transactions are recorded and exported to the appropriate tax return templates. Then, they can be sent digitally to revenue.
Making Tax Digital (MTD) is Thailand’s transition to digital tax accounts. This requires digital record-keeping and tax returns. A cloud platform makes it possible to be digital-ready and send your returns in the required iXBRL format.
Cloud accounting is a great way for your business to take advantage of flexible or remote working. It allows your finance department and the management team to access key numbers from any location they have internet access. At the web agency, we have implemented cloud accounting during the covid time and it was definitely a game-changer.