Adam Croney, Director at Thomas Westcott Chartered Accountants, outlines the ways in which cloud-based accounting is creating new opportunities for businesses.
The changing restrictions during 2020 have acted as a catalyst to many business owners migrating to cloud accounting and digital finance tools. While some have been forced to take the leap through necessity rather than choice, they should now be seeing some of the benefits this digital approach delivers.
- You can do business anywhere
The dramatic move to remote working has perhaps now become the key driver of businesses moving over to cloud-based finance systems. It means you can do business from anywhere and monitor everything remotely.
Moving to a cloud-based expenses system is a quick efficiency-saving for any business. More businesses are now also using data capture tools, which automatically input into the finance system.
- It gives you real time data
A cloud-based accounting system gives you access to real time data, which creates opportunities to spot issues as they arise. Managing your accounts becomes less about retrospective analysis and more about constant reviewing and adapting. That means you can respond much more quickly to challenges and opportunities.
- You can make better decisions
Having access to real time data can help you to make better decisions. Over time, you can start to use this data in a much more sophisticated way to inform your strategy.
If you are making decisions about the future direction of the business based on data, you need to ensure that data is as accurate as possible. There are a number of cloud-based tools that check the quality of your data, highlighting duplication and other potential errors.
- It reveals profits and losses
Most time tracking software, which service businesses use to record their employees’ time and accurately cost work, can be integrated with finance systems to accurately track costs. This can provide really insightful data, identifying any losses and demonstrating where profit is being made and where the growth opportunities are.
An inventory management and stock reporting system that integrates with the cloud can enable you to constantly track which products are making money for the business.
- You could rethink your workforce
Adopting some or all of these new approaches could significantly free up time within your business. With less administration, could your employees be contributing in a more impactful and meaningful way, working on more value-driven tasks?