Every accounting practice should be using cloud accounting for their practice for three reasons:
- Access to real-time (daily) accounting data showing the practices current financial position. This includes the practices profitability, financial position, cash-flow, debtors, and creditors. This real time data allows business decisions to be made very quickly and action taken straight away, so losses are minimized and profits enhanced.
- To assist with transitioning all the practices business clients across to a cloud accounting platform. For clients that are hesitant to move across to cloud accounting, it will be easier to sell a client on the benefits of cloud accounting if the principals can say they have been using the product themselves successfully for years.
- The bank feeds and automated coding of transactions can reduce the time involved in preparing the practice accounts by up to sixty five percent.
A well know management proverb is that ‘what you don’t measure in business, you can’t manage’. Cloud accounting provides real time (daily) measurement of a practice’s performance, so the principal can manage it effectively.