An Ultimate Guide to Cloud Accounting Services

The importance of accounting services to businesses in Singapore is undeniable. It efficiently manages business finances by ensuring that business owners make educated financial decisions, helping them focus on growing their business, keeping them on track with all business expenses, and saving time and money. Traditionally, accounting services were executed using locally hosted software on a desktop computer’s hard drive. But with cutting edge technology, managing business finances can be done remotely online through cloud accounting services.

Savvy bookkeepers and accountants know the benefits of cloud accounting services. Despite that, getting clients on board with nontraditional accounting methods is not as easy as it seems. New and unfamiliar ways can be hard to accept, and changing any process can be complicated. And that is why new clients of cloud services will likely and rightfully question the perplexing “cloud” along with data security, cost of services, and so on.

The hesitation in engaging in cloud accounting services comes from the method’s unfamiliarity. If you want your clients to be confident in managing their finances, prepare yourself by learning the information you need to share with them. This article takes an in-depth look at clouding accounting services, including its benefits to businesses, how it works, and more! Continue reading below to learn more.

What Is the Cloud?

To better understand what cloud accounting is, let us begin with the word “cloud” and what it stands for. The cloud refers to servers accessible over the internet, including the software and databases running on those servers. Cloud servers are located all over the world in data centres, making them easier to access. There is no need for businesses and other users for physical servers or to run software applications at their own expense if they use cloud computing.

Moreover, the cloud gives users access to the same files and applications from different devices because computing and storing happen on servers in data centres. It is the same concept when users log into Facebook on another device, and they still find the same content, photos, videos, and conversations intact. It works similar to cloud email providers, like Gmail and Microsoft Office 365, and cloud storage providers, like Dropbox and Google Drive.

Additionally, the cloud is a metaphor for the internet. Its origin traces back to when flowcharts and presentations were used to represent the server-farm infrastructure of the internet as a puffy, white cumulus cloud that accepts connections and gives information as it floats.

What Is Cloud Accounting?

After learning what cloud is, we will now take a closer look at cloud accounting. In its simplest form, cloud accounting consists of basic accounting tasks, such as managing and balancing business accounts, using software located in the cloud. Accountants and bookkeepers can manage accounts payable, receivable, the general ledger, and more through this. Since cloud accounting software runs on servers in cloud centres, users can easily access the tools they need over the internet. It means that employees and third-party staff no longer need to be in a certain place to be up-to-date with their business’s financial situation.

By switching to cloud computing, businesses can reduce costs and overhead associated with IT because they no longer need to manage their own servers. The cloud vendor will get things done on behalf of their businesses. Cloud computing significantly impacts small businesses that, in the first place, may not have the resources to build an internal infrastructure. If they outsource their infrastructure needs from a third party, it is affordable via the cloud. It also makes operating businesses internationally easier because employees have access to the same files and applications even if they are located in various places.

The Benefits of Cloud Accounting Services to Businesses in a Competitive Market

Singapore is considered one of the best places to do business and invest. All this is owed to its business-friendly environment, stable economic and political disposition, and pro-foreign business policies. These are similar reasons why competition in this business landscape is very tight. If businesses want to get ahead, they need to ensure that their operations are streamlined to perform efficiently. Getting cloud accounting services is one way to be on top of the game.

Here are the benefits of cloud accounting to businesses in Singapore:

    1. Automation

Transactions are regularly updated when business accounts are connected to the accounting system, and it makes data entry and manual imports faster. Besides that, cloud software automates account reconciliation and matches bank statements as well as invoices to ledgers so that you can close the books without hassle. Some accounting applications can even automatically pay vendors and issue invoices to customers on user-defined schedules.

    1. Accessibility

Anyone can access a cloud accounting service with an internet connection, web browser, and login credentials. Users can log in using a mobile device, like smartphones and tablets, and they don’t need to be in a certain location to gather information or complete tasks.

    1. Reduced Expenses

Businesses that use cloud technology are likely to spend less on IT maintenance than those who manage in-house infrastructures. According to a report by Datometry, more than 60% of IT experts said that reducing costs was their priority. However, most of their funds are allocated to IT staff to manage the system. But you don’t need to pay more for system upgrades and maintenance with cloud accounting services.

    1. Data Security

Extensive security protocols in top cloud software compared to most businesses can provide for their on-premise systems. To reduce the risk caused by a fire or natural disaster, cloud providers never miss backing up your data to servers in many locations. Your hard drives or devices with sensitive information won’t be prone to looting because they don’t have data stored in them.

    1. Faster Implementation

It is easier for a business to get running on a cloud because there is no need to purchase services and set them up, and no IT team will be involved. Cloud providers have implemented thousands of services; thus, this process will be a piece of cake for them.

For Reliable Cloud Accounting Services, Turn to ContactOne Today!

Reach out to us, and we will be more than willing to walk you through more accounting options. Call us on +65 6333 0633 or +65 8666 3633. You may also visit our website to learn more about us and what we can do to help your business be on top of Singapore’s competitive business hub.