We love cloud-based accounting software here at Cottons. It’s efficient, powerful and accessible, making it easy for us to connect with our clients and give them informed advice.
Here’s how it can benefit your business, and why we recommend Xero cloud accounting in particular.
Benefits of cloud-based accounting software
To start with, you might be wondering: why cloud accounting, rather than more traditional desktop platforms?
The main difference between the two is that cloud-based accounting software stores data online, using remote servers, rather than on your device. This is helpful for various reasons – here are a few:
- Easy access: Access your financial data anytime, anywhere. As long as you have an internet connection, you can log into your accounting system on any device.
- Real-time information: Most cloud accounting platforms provide real-time updates. This means you can see your financial position at a glance – no more waiting until the end of the month or year for a report.
- Cost savings: Compared to purchasing a license for desktop software, there’s no need for significant upfront investments in hardware or software installations. You typically pay a monthly or yearly subscription fee which can scale with your needs.
- Automatic updates: Cloud software providers handle maintenance and updates, ensuring you’re always working with the latest features and up-to-date with regulatory changes.
- Enhanced security: Reputable cloud accounting software companies invest heavily in security to protect users’ data, employing encryption, two-factor authentication, and regular backups.
- Collaboration: Multiple team members or stakeholders (like your accountant or bookkeeper) can access the data, making collaboration easy and efficient.
- Scalability: As your business grows, cloud-based accounting software can scale with you. You can upgrade your plan or integrate new features as needed.
- Automation: Automate repetitive tasks such as invoice generation, payment reminders and bank feeds, saving time and reducing errors.
- Integration: Cloud accounting platforms often integrate smoothly with other business software (eg CRM, eCommerce platforms, payment gateways), creating a connected digital ecosystem.
- Disaster recovery: Cloud platforms usually back up your data in multiple locations, ensuring that, in case of disaster, your financial data can be quickly recovered.
- Support: Most cloud accounting providers offer support through chat, email, or phone, ensuring you have help when you need it. We’re also on hand to help you set up and learn the software.
Why we recommend Xero cloud accounting
With so many software options on the market, the choice can be overwhelming. But we always recommend one platform in particular to our clients: Xero.
Founded in New Zealand in 2006, Xero has gained something of a cult following ever since, with many accountants and business owners singing its praises.
Its user-friendly interface makes it easy for anyone to get to grips with, while its scalable pricing system means you can expand the features you use as your business grows.
But one of the biggest benefits of Xero is the huge variety of integrations available on its app store – more than 1,000 to date. Whatever app you need, there’s a good chance Xero will provide the option to connect with it.
We’re Xero Platinum partners, which means we can offer in-depth support with Xero to our clients.
And we’ve seen several success stories so far. One client we worked with recently used to spend about 10 hours every week on setting up payments for invoices and verifying info. With Xero, they were able to completely automate this process.
By implementing Xero and finding more tasks to automate in your business, we can help you achieve similar results – all while keeping your books up to date.