One of the key themes that we see with smaller businesses, is their tendency to opt for manual accounting.
This is the traditional route that many businesses choose to process, record, and present the financial situation of the business. Usually, it involves registers, vouchers, and account books. Although manual accounting is the traditional route, this does not necessarily mean that it is the best option for your business. Let’s discuss this further…
The Benefits of Manual Accounting:
Although manual accounting is not necessarily something we would recommend, it does have a few perks. This includes the fact that there is no delay due to power or internet outages and there is no risk of personal information being hacked online.
The Disadvantages of Manual Accounting:
Most business owners are exactly that, business owners. Accountancy is an extremely complicated field and if you are not trained, you could be making it harder for yourself.
The process is also extremely time-consuming as you might be having to rifle through bunches of paper to find the correct information.
The final downside is that due to the entire process being down to a human being, human error can be a big problem. Whether this be entering information incorrectly or accidentally swapping figures, there is an increased risk of human error compared to cloud accounting.
Why Should I Use Cloud Accounting?
Cloud accounting has been a huge breakthrough in financial management with the drawbacks of traditional accounting finally being eliminated. With several different features, cloud accounting software appeals to businesses of all sizes and has found its way onto the ‘must haves’ for many businesses, even ours!
Here are some of the main positives of utilising cloud accounting to handle your finances:
- You can access your accounts anywhere! No matter where in the world you are, providing that you have the necessary Wi-Fi connection, you are good to go. As well as this, all you need for someone else to access is the username, password, and permissions allowing you to restrict people if need be.
- You can access real-time information! Cloud accounting allows you to have a better grip on your finances due to it being extremely easy to keep up to date. Therefore, instead of looking at an accounts book that is days, weeks, or potentially months out of date, at that moment, you can get an accurate screenshot of how healthy your business’s financial situation is.
- Security is a top priority! No matter who you are working with, you can easily grant them access using cloud accounting software compared to an accounts book or emailing across sensitive data. This keeps your information and business records safe thus preventing them from being accidentally leaked.
Ultimately, the way the world is moving forward, manual accounting will become a thing of the past and businesses will need to move towards a more digital method of working. Therefore, get ahead of the game and reach out for advice when you need it. If you do feel you need some support, you can contact us here to see how we can help.