If you’re a business owner of a startup or a small business, you might want to look into transitioning your company’s accounting, bookkeeping and finance functions to digital. This will enable you to focus more on growing business revenue instead of balancing the books and financials.
Cloud technology has revolutionized the world of accounting and finance in a big way. With cloud accounting solutions, financial information and documentation can now be uploaded, processed and maintained in remote computer servers real-time. It means that you can perform all accounting, bookkeeping and finance related activities as long as you have an internet connection and have been granted access to the solution.
So, how do you go about this? You have two options: you either subscribe to an accounting solution and manage it internally, or you can outsource to an online accounting and bookkeeping services provider that will handle all the accounting and finance services of your business. So which of the two should you choose?
First, let’s find out the difference between the two. Below, you can find an explanation of the differences between subscribing to a cloud accounting solution and outsourcing to a provider of online accounting and bookkeeping services in Manila and the Philippines.
What is a Cloud Accounting Solution?
Before cloud-based technology was even a thing, accounting solutions, or the technology that enables users to perform accounting and bookkeeping services, were only accessible on the computer or computer network where the solution was installed. It means that users could only access their finances when physically on company premises.
But because of the recent technology advancements, founders, owners and business managers now have the ability to access their finances from anywhere and anytime— this is cloud accounting.
What should you look for in a Cloud Accounting Solution?
While there are numerous cloud accounting solutions available, you must look for one that is intuitive and cost-efficient. Keep in mind that no one cloud accounting solution is the same and in order to fully maximize the functionalities of the solution, you should consider the industry, model and size of your business or organization.
It’s also important to ensure that your chosen cloud accounting solution can be set up to align with the compliance of the country in which the business is operating. Choose cloud accounting solutions that are used by businesses globally and have key functionalities that will make your finance and accounting management easier.
Check out Quickbooks Online and Xero, two efficient cloud accounting solutions that are used by many businesses across the globe. These accounting software are used by SMEs to manage and monitor their daily accounting, bookkeeping and finance activities such as daily transactions, sales and revenues, expenses, receivables, payments, cash flow, payroll, petty cash, and many more.
Businesses that subscribe to cloud accounting solutions will have access to an incredibly efficient tool for managing their finances. However, while most users can learn to record simple transactions, a certain level of accounting and finance knowledge is needed to utilize the cloud accounting solution to its full potential.
How does outsourcing to a cloud accounting and bookkeeping services provider work?
When a business outsources to a cloud accounting services provider, the company will have access to both the tool and to accounting and bookkeeping services experts.
The cloud accounting service provider would effectively manage the cloud accounting solution on behalf of the business. The business owners or managers will also have full access to review the company’s financial data any time.
What are the benefits of outsourcing the management of your cloud accounting solution to a provider of accounting and bookkeeping services?
There are many benefits in outsourcing the management of your cloud accounting solution to a service provider. For one, you will have full access to the accounting management tool, while also having top talent to do the nitty-gritty of the accounting and bookkeeping functions of your company. Below are six benefits that you can get when you decide to outsource to a cloud accounting and bookkeeping services provider.
- Implementation- an outsourced accounting provider will help you implement your accounting solution, set up your Chart of Accounts, upload existing balances and ensure that your accounting solution is fully optimized.
- Expertise- when you outsource your company’s accounting and bookkeeping services, you get access to a range of talent and expertise including tax compliance experts, finance advisers, CPAs, skilled bookkeepers, and more.
- Integration- Across the world, more and more businesses are moving parts of their business to digital. An outsourced accounting provider will have the knowledge and experience to help integrate the accounting solution with other platforms and technologies within your business.
For example, in the restaurant and e-commerce industries, an outsourced accountant can advise on how to migrate key data from the Point of Sales system (POS) or the back-end shop platform to the accounting solution.
- Functionality- cloud accounting service providers are experts at ensuring that the full spectrum of capabilities are utilized for the benefit of the business. From invoicing, report generation, inventory costing, to country specific tax compliance, cloud accountants from the service provider know how the technology should be used.
- Industry experience- In outsourcing to an established provider of accounting and bookkeeping, you will have access to bank experts who have a wide experience in managing accounts of businesses in similar industries and with similar business models.
This kind of experience and knowledge is invaluable because the outsourced accountants and bookkeepers can advise you on typical pain points, industry specific legislation and tax treatment relevant to your business model.
How will a cloud accounting services provider help my business grow?
A cloud accounting service provider will give you outsourced accounting, bookkeeping, and other finance services. No matter where you are or your business is in the world, an efficient cloud accounting services provider will utilize cloud accounting solutions to its full potential and give the maximum benefit to your business.
At CloudCfo, we provide efficient outsourced accounting, bookkeeping, tax compliance, and payroll services to global startups and small businesses anywhere in the world. We advise all our clients on the key ways to generate cost and resource efficiencies for their businesses through the use of effective cloud accounting solutions, and implement and manage the accounting solution on their behalf.
To learn more about the key benefits of transitioning to a cloud accounting solution, contact us at email@example.com or visit www.cloudcfo.ph and speak to our expert accountants and bookkeepers!