Not having the correct cloud-based bookkeeping system will cause bigger issues for your business, especially during economic hardship.
Implementing the right cloud-based bookkeeping system can truly “make” or “break” your business. If you’re aiming for transparency with regards to financial forecasting, bookkeeping software should not only “do your accounting” but it should provide a clear picture of your current position while integrating with other platforms that help your business.
Accounting software is not just balancing spreadsheets in excel anymore… many of the traditional bookkeeping systems we used to know, and love (think, Quickbooks) are now cloud-based and providing more insightful information than ever before. How? By using API endpoints these cloud-based systems can now integrate with your other business software like inventory management systems and eCommerce, to provide real-time accounting insights.
By linking your accounting software, inventory management systems, and eCommerce site, you can have advanced metrics at your fingertips and in an instant know the current financial standing of your company. No more waiting for quarterly reports from the accountant… with cloud-based software you’re able to access almost any information you need on the go. And as a bonus, many of this software also has robust mobile apps for things like receipt tracking, expenses, and other instant insights.
But what bookkeeping software is right for you?
First, you need to ask yourself a few questions:
What systems do I already have in place for accounting or business management?
Will any of these systems integrate with one another to share data and provide insights?
Is it important to me to have this information available through my mobile device?
Overall, I think you’d agree that you need a program to help with daily accounting tasks like recording payments, expenses, reconciling transactions, and maybe even invoicing customers, right?
And the great part is most accounting software out there already does all this. What you really need to determine are the answers to the questions above, and what additional features are important to you.
It’s probably best to go with a more popular software since they have likely invested more resources into building out a robust support team and documentation so you can self-serve. This means considering programs like QuickBooks Online, Sage Intacct, Xero, and Dryrun.com.
From there, determine what works best with your current software and hardware. For example, QuickBooks online works best for Mac users as opposed to QuickBooks Desktop.
Another factor you’ll want to consider is your level of accounting skills. If you’re still planning on working with an accountant but want information available to you at your leisure, you can use platforms like QuickBooks Online, Sage Intacct, or Dryrun.
Finally, consider the cost. You don’t want enterprise-level accounting software if you’re a small “mom&pop” style business. Similarly, something like the QuickBooks Seelf Employed mobile app might work for a freelancer managing their own revenue but may not be suitable for a business that wants to hire employees and customize their chart of accounts.
Working with your accountant to determine the best software for your level of business is also an option.
No matter which direction you go, make sure the software is cloud-based so it is accessible from any location and you’re able to provide logins and various access levels to different members of your team.
Congratulations on taking the first step towards financial transparency! Let us know if you have any questions on your journey.