Your finances can be a complicated part of business operations, but with the right cloud accounting software, you can streamline accounting tasks, improve your cash flow, and gain valuable knowledge about your business.
From improved accuracy and efficiency to real-time insights, cloud accounting is a great way to set your business up for success. Keep track of business expenses, reduce risk of error in tax calculations, and scale your operations with one of the most cost-effective and streamlined ways to manage your business’ finances.
With so many options available, choosing the right cloud accounting software for your business can be difficult. Before starting your search, it can be helpful to think about the size of your business, the specific financial processes you need to automate, and the features you require. This will help you narrow down your options and find the best solution for your business.
Accounts receivable and accounts payable
A good cloud accounting system allows you to record both accounts receivable and accounts payable. Cloud accounting software can help you manage your receivables more efficiently by creating professional invoices, sending payment reminders, and collecting online payments, therefore improving your cash flow. Your software should also help you keep tabs on your payables, such as vendor bills and operating expenses, and offer reminders to make sure that you pay them on time and avoid costly penalties.
Automation
Automation is one of the most valuable features of cloud accounting software, because it helps you accomplish more in less time. At the invoicing and billing level, you can automate transactions, payment reminders, and recurring payments. Auto-scan is another feature of accounting software automation that captures data from receipts and turn it into transactions with minimal effort.
Integrations
Integrations allow you to work with different apps without leaving your cloud accounting platform. Changes you make in an integrated app are automatically updated in your cloud accounting platform, removing the need for repeated data entry.
Project and time tracking
Cloud accounting software offers options that work for your billing process, whether it’s tracking billable hours or by setting a fixed cost for each project. The programs also offer billing oversight by allowing approvals before you create invoices.
Bank reconciliation
Accounting software that fetches your bank statements automatically and allows you to set up custom criteria and bank rules to automatically match and categorize transactions will help you reconcile accounts quickly and accurately.
Reporting
To keep track of your business’ performance, choose software that’s capable of generating comprehensive financial reports, dashboards and visualizations, providing valuable insights into the financial health of your business. The software you pick should also help generate reports for different accounting functions that will tell you how you’re performing in specific areas of your business and be able to track specific KPIs for your company.
Tax readiness
Being tax ready is one of the many benefits of having good cloud accounting software. Your cloud accounting software needs to be able to calculate your tax liability, work with multiple tax rates, and generate tax reports to help you comply with the tax rules laid out by the CRA.
Data security
Choose apps from well-known vendors that provide two-factor authentication, secure communication, and encryption, and educate yourself about the security mechanisms before you start using them.
Simple interface
Software with a simple user interface makes it easier to focus on important tasks and can reduce the learning curve for you and your team.
Mobile access
Mobile versions of cloud-based apps allow flexible and easy access to your numbers. You can run your entire business accounting process instantly, even when you’re not at your workplace. If your work requires frequent travel, choosing software with a mobile option lets you accomplish your accounting just as easily on your mobile device as on your desktop.
Role-based access
Certain areas of your accounting need to be kept secured from unauthorized access, and the best accounting apps on the market allow you to give your employees role-based access to specific accounting modules.
Pricing
The software won’t do your business any good if you can’t afford it. Take the time to understand how the price compares to the value you’ll receive and always remember the most expensive software isn’t necessarily the best for your business.
Cloud accounting with Grant Thornton
A powerful cloud accounting ecosystem can transform the way you work and boost your business’ performance and growth potential. Contact us today to learn more.
