With various technological advances, business processes have also become more streamlined and automated. One of the major advancement in recent years is the rise of cloud-based accounting software.
In this article, we'll be looking into the various areas where cloud-based accounting software can help increase business productivity and efficiency through various automation.
e-Invoicing and Billing
Traditionally, a simple chore of issuing an invoice or bill can prove to be very time consuming.
Aside from issuing the document, you'll also have to ensure that the information is being recorded into your accounting books, draft an email with the attachment and setup up a tracker based on the payment terms. Not only is this a tedious process, it also create a lot of room for potential human errors.
With most cloud-base accounting software today, you'll only be required to issue your invoice or bill and the software will take care of the following for you:
- Journal Entries – DR: Accounts Receivable, CR: Revenue/Sales Income or DR: Expense, CR: Accounts Payable
- Send e-Invoice – You’ll have the option to send an online copy directly. No longer requiring you to export a pdf.
- Outstanding Payment & Collection Tracker – Based on your payment terms, a basic tracker will be updated, allowing you to easily track outstanding payments and collections. You’ll even have a aged receivables and aged payables report to refer to.
This significantly reduces the time spent on tedious processes and potential human errors!
Reporting at Your Fingertips
If you’ve been using an excel sheet for your business bookkeeping, you are probably very familiar with VLOOKUP and Pivot Tables when it comes to generating all the necessary reports such as the Profit & Loss report and Balance Sheet.
With today’s technology, all your reports are updated live whenever a new entry of sales, purchases and other expenses is made. No longer do you need to spend hours pulling together necessary information across various excel sheets to generate your reports.
Better yet, because everything is hosted on cloud, you are able to access these information from anywhere at anytime so long you’ve got access to the internet.
Multiple Users for Collaboration
Unlike excel sheets where only a single user is permitted to access at a time to avoid risk of overwriting a previous action, most cloud accounting software allows the creation of multiple users where collaboration can take place.
The admin can also set specific permission levels on each sub-account to assign specific roles to each one. Through proper collaboration, work processes can become more streamlined and efficient.
Some accounting software comes with a basic built-in inventory tracker which is very handy for businesses that carries an inventory. Financio being one of the software with this feature allows you to input your product information along with a SKU Code or Serial Number.
With this function, your stock balances are automatically adjusted when the payment is collected or issued for your invoice or bill respectively.
Last but not least, cloud-based accounting software comes equipped with live backup feature. One of the worst-case scenarios is having completed all your accounting only to find that your file has been corrupted and you’ll need to res. Even a simple habit of constantly saving your files and backing them up in a local server may also end up costing you a whole lot of time when accumulated.
Financio offers secure real-time + daily backup (Up to 7 days) in two locations. This ensures that your data is always safe with an additional backup should anything goes wrong. That’s one less thing you’ll have to constantly worry about.
This is merely the tip of the iceberg as far as how cloud-based accounting software can help a business become leaner and meaner in its day-to-day operations.
We’re certain you’ll find many more little features and functions along the way that helps automate your business processes.
Looking for a suitable cloud-based accounting software? Check out this article to learn more
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