Cloud-Based Accounting

The accounting department of today should be a mean operating machine. How do you ask? You can move to the 21st century by integrating and automating your processes and using cloud-based software.

Accounting departments are now able to move from paper ledgers into computerized activities. To ensure that information moves smoothly within an organization, such a move should be carefully planned. This setup was not possible in the past due to the large program costs associated with setup and maintenance. But not anymore!

Cloud-based accounting programs are more common than downloadable ones. This has made it possible to quickly roll out updates and program fixes and requires no user action. A user can access cloud-based apps from any device (i.e. computers, laptops, mobile).

Processing accounting records used to be done on paper. All payments and vendor bills are sent electronically today, as well as sales invoices. It is rare that anything is received in paper format. Most documents can be digitized quickly with a scanner, or images captured on mobile devices.

What does this mean for an accounting department that is more efficient? The efficiency is found in reducing manual data entry. This in turn decreases human error. The next step is for an application to be read (via OCR), understood, and posted the transactions. Many applications can have parameters set up that allow repeat transactions to automatically be processed. This also includes taking into account sales tax.

Are there mistakes? Although no system is perfect, modern systems can provide an analysis of the final result. After data entry has been completed, including reconciliations with banks and credit cards, it's time to pull a detailed profit-and-loss report which shows the expenditure accounts. You can scan the accounts quickly to find anomalies, much quicker than manually entering it.

You must also examine where the accounting information is coming from to further improve efficiency. Does every third-party application connect to the end accounting software program? Is that possible? Perhaps you need to reconsider which applications to use in order to make sure all information is connected seamlessly. Many applications today can connect to the full general ledger accounting program.

Checks are another area of paper to be aware of. Cheques can also be replaced by electronic file transfers of payments thanks to today's technology. Many companies use the platform of their bank to do this, but it is not connected to their accounting software. Other platforms are cheaper and can be used to connect, which leads to savings of up twofold.

What about payroll? Over the years, payroll has been automated and accessed through employee portals. Connecting the payroll to accounting software, if it's a third-party solution, would be the last obstacle. If your current service doesn't support this, it might be time to switch to one that does.

Cloud-based bookkeeping and other related applications have transformed the industry. It is time to automate traditional accounting departments. This allows for more time to be spent on the analysis and reporting of results in real-time.