It’s not always easy to know which accounting system you and your business ought to choose, how it differs from other systems, and how to integrate it with other systems the company uses. To follow is an article on the difference between traditional and cloud-based accounting systems, why the majority opt for moving their accounts to the cloud, and what opportunities advanced cloud-based solutions can offer. Are interaction, simplification, user-friendliness and benefits in the form of enhanced efficiency important to you?
Then now’s the time to switch to a cloud-based accounting system – if you have not already done so?
What’s the difference between traditional and cloud-based accounting systems?
The biggest difference between traditional and cloud-based systems is that the latter create a totally new platform on which to interact. A cloud-based accounting system gives you and your accountant access to exactly the same data at any time.
Why are cloud-based accounting systems often preferred?
By using a cloud-based accounting system, you can log directly into your accounting system via a web browser, giving access to figures and the vouchers related to them. You can go back any time to see invoices if any queries ever arise. All you have to do is to log in using user name and password, regardless of whether on your mobile, PC or tablet.
In principle, you can switch over to a cloud-based accounting system without changing your workflow or processes. There is nothing to prevent using the new accounting systems in exactly the same way as traditional systems. The difference is that the new systems give more opportunities for efficient interaction precisely in line with your needs.
An efficient attestation process can be added in some cases, to reduce the number of steps. In a cloud-based accounting system, it’s possible to approve an invoice received once, after which it will be sent directly to the bank. You will thus be able to approve and forward it to the bank with just one click. In other instances, an effective attestation process can be linked to the process of sending invoices to one or more specific people. This reduces the use of approval via email, and the accounting system will also log who attested the invoice at the same time.
Another process that is much more efficient in the new systems are customer invoicing. It often used to be necessary to send invoice data to your accountant and await an answer on whether you had provided the information necessary. In a cloud-based system, you can set up and send out invoices yourself. This means you can invoice regularly, and receive payments correspondingly faster, while saving time on discussions to and from with your accountant.
Liaison with colleagues and your accountant becomes much easier using new accounting systems
Cloud-based accounting systems make it possible to adapt delegation of work between you and your accountant. If you want to take on more, such as partial entry of vouchers, you and your accountant can agree a proposal for posting and which VAT code will be used. Your accountant will thus become more like a controller for your accounts. When accounts are updated continuously, it becomes simpler for your accountant to also fulfill the role of financial adviser.
By using ‘role management’ in the system, you can give your employees access to those parts of the accounting system you believe are appropriate. If, for example, you have multiple Department and Project Managers, they can be given access to relevant financial data for their specific role. The most common is to give your staff access to timekeeping and the ability to submit travel expenses. This involves them in the system solution, by receiving and giving information in real time.