One of the universal problems that businesses eventually face is cash flow difficulties. Not knowing when your money is coming in and where it’s going are big problems for many organizations. As a company grows and new clients are added, the complexity of a business’s finances and cash flow increases. Getting assistance from a professional accounting firm can prevent money management from becoming a reason not to expand.
Fortunately, getting assistance with keeping the books and accounting for businesses has become easier because of online accounting. Technology is allowing businesses to access their financial data from anywhere at any time of day or night, thanks to cloud accounting.
What is Cloud Accounting?
The easiest way to understand cloud accounting is to understand cloud computing. Cloud computing is simply storing and accessing data and programs over the Internet instead of your computer’s hard drive.
Computing used to be all about hard drive and storage capacity. When you store data on your hard drive and run programs from it, that’s known as local storage and computing. Everything you need is in close proximity to you, and accessing your data is fast and easy, for that one computer or other computers on the local network.
Cloud computing is having access to your data or programs over the Internet and having that data synced with other information over the web. In many cases, businesses subscribe to an application and access it over the Internet, such as an accounting application, which is known as cloud accounting.
A good example of cloud computing is Microsoft Office. The Microsoft Office software is normally installed on a computer’s hard drive, taking up hard drive space and tying a user to their computer if they want to access the program. If you want to edit a Word document you created, you need to be on the computer you created it on.
But, Microsoft also offers a set of web-based applications, known as Office for the Web. They are web-only versions of Word, Excel, PowerPoint, and OneNote, which are accessed via your web browser without installing anything. This makes them a version of cloud computing.
Cloud accounting software is also a version of cloud computing. It’s web-based and is hosted on a remote server, and can be accessed from anywhere. A company doesn’t need to set up individual desktops with the software since everyone that is granted permission can access the cloud from anywhere on their own devices.
The Benefits of Cloud Accounting Software
There are many benefits to using cloud accounting software vs. having the software installed on a hard drive. They include:
You can access your finances anytime from any location: We’re a mobile society and we live on our mobile devices, whether it be a smartphone, pad, or laptop computer. With cloud accounting software, you can be anywhere and securely log in to access your financial data. No more installing or downloading accounting software and keeping it updated; it’s hosted remotely on the cloud.
Easy collaboration with your accountant: With your accountant having access to the software, they can access your financial data anytime they need to. Either of you can generate reports to share with the other, making the flow of information simple and efficient.
Access to technical support: Available 24/7, assistance from tech support is only a phone call or chat box away. They can help you with any issues you’re having with the software, which may eliminate the need to have an employee in-house to deal with software issues. This can equate to considerable savings for a business with employee salaries and benefits costs.
Reduced paper usage: Company finances usually involve large amounts of hard copy documents. Cloud accounting software allows you to import data straight from your paperwork into the cloud, giving you a complete view of your finances without the paper. Critical data isn’t lost, and manual errors are minimized.
Improved security: With cloud accounting, only employees to whom you grant access can view sensitive and confidential data. Cloud accounting software is also kept on secure servers with the latest patches to prevent cybersecurity issues.
Cloud-Based Accounting With RW Wealth and Bill.com
Because of the robust features and benefits for businesses, RW Wealth selected Bill.com as the cloud-based accounting software that we recommend for our clients . Bill.com offers all of the advantages of the cloud listed above, and RW Wealth has done all of the due diligence needed to select Bill.com as the best cloud-based accounting software on the market.
What Does Bill.com Offer Our Clients?
We’ve found that no matter what size your business is, Bill.com has everything you need in online accounting software. Its strength lies in automating your Accounts Payable and Accounts Receivable, which efficiently improves your company’s cash flow. It does this through:
Accounts payable automation: Bill.com will save you 50% of the time you spent on AP. It automatically enters invoice information for you to review, routes bills, and reviews important notes via your pre-determined approval workflow.
Accounts receivable automation: Bill.com gets you paid 2x faster, on average. It helps you send digital invoices, sets automated payment reminders for clients, and utilizes electronic payments to make AR more fast and simple.
The Bill.com mobile app: The mobile app lets you manage payments from anywhere, whenever you need to. You can review payment information and make payments regardless of if you’re in or out of the office.
Easy document retrieval: With Bill.com, you can retrieve documents, vendor records, and payment activity information immediately and see time-stamped audit trails for all of your AP and AR transactions.
State-of-the-art security: Bill.com uses artificial intelligence to perform risk assessments that reduce the risk of fraudulent activity. It makes your payment process more secure and protects you against check fraud.
At RW Wealth, we strive to bring you the best-in-class tools to manage your business’s accounting processes. We selected Bill.com, which helps millions of businesses simplify AP/AR because it integrates and shares financial data with the RW Wealth accounting system.
Contact us for a free consultation either in person or over the phone to discuss Bill.com and any of your accounting and wealth management needs.