Cloud computing is offering services, like accounting, through the internet with the use of networked computers called servers. Cloud accounting, combined with business automation, has a number of benefits that can help small- to medium-sized businesses in Toronto and throughout Canada. At Future Balance CPAs, we’re proud to be providing industry-leading accounting and bookkeeping services, specializing in cloud accounting in Canada.
The Benefits Of Cloud Accounting in Canada
- Lower initial cost because there is no software application to purchase and the service is available through subscription. There is also no local storage requirement.
- Lower running costs because there are no servers that consume electricity and no data center to maintain.
- Reduced IT costs because the application is managed by the provider including maintenance, software upgrades, storage, administration, troubleshooting, and backup.
- Data is kept secure and confidential because they are protected by enterprise-level security protocols, unlike locally installed applications wherein data can be lost or stolen together with the device running it like laptops and desktop computers.
- The application scales up as the business expands so procuring additional resources like software licenses, servers, storage, and IT professionals is not necessary.
The Processes You Can Automate With Cloud Accounting
- Purchasing and Accounts Payable. Purchase requisitions can be routed to the approving channels using a workflow and is instantly cross-checked against the existing budget. Invoices are also validated against purchase orders.
- Accounts Receivable. Your customers’ accounts are automatically updated with the invoices, overdue reminders are sent through email, and late payments are flagged. This results to faster payment.
- Managing Expenses. Creating, submitting, approving, tracking, and reconciling expense reports are automatically done, which helps businesses gain more detailed insights into both customers and projects.
- Financial Reports. Stakeholders are given a full view of operational information through scheduled reports and email. This important data can be used by businesses to be responsive and agile when opportunities arise.
- Bank Reconciliation. General ledger bank account and ledger account transactions are instantly matched and reconciled, which helps cut down unnecessary expenses on extra employee hours.
Small and medium enterprises (SMEs) in Toronto, Canada will benefit from cloud accounting because it just doesn’t do accounting records maintenance. It can also be integrated with different business systems like project management, CRM, and payroll. Decision-makers are also provided with insightful information. In addition, costly mistakes can be avoided because cloud accounting systems follow international standards so businesses remain compliant and efficient.