At Xero we make cloud a way of life. But we’re not the only ones extolling the virtues of cloud software. Jamie Shulman co-founded his company Hubdoc because he was looking for a cloud solution to traditional bookkeeping tasks. Jamie shared with us the top advantages to cloud bookkeeping.
Top 5 advantages of cloud bookkeeping
Cloud bookkeeping has created a significant step-change in efficiency for the accounting industry. At its core, cloud bookkeeping automates manual tasks so there’s more time to spend on what matters.
Let’s jump in and talk about the advantages.
1. Support More Clients in Less Time
Cloud bookkeeping and automation go hand-in-hand. Automation is taking manual tasks and having software do them for us. The cloud enables this at a scale previously unheard of.
For example, in cloud accounting solutions, transactions are created without data entry. In the past, data entry was incredibly manual. Accountants and bookkeepers would spend hours entering transaction data from paper bank statements.
These types of productivity gains are not exclusive to the accounting software you use. Many of the larger accounting platforms have a vibrant add-on ecosystem. These add-ons integrate directly into their software. There are solutions for automating everything from document workflow to forecasting cash flow.
Cloud bookkeeping makes it possible for advisors to support more clients in less time through automation. They can also focus on higher paying work.
2. Real-time Financial Reporting
The ability to efficiently manage cash-flow is the holy grail of financial success for many business owners.
Entrepreneurs often don’t have real-time insight into their business’ finances. They have to blindly conduct day-to-day operations. The lack of key timely financial information can make or break a company.
Cloud bookkeeping solves this. It puts business owners back in the driver’s seat. It provides them with auto-updated, real-time information about the financial health of their company.
They no longer have to wait for the latest version of their QuickBooks file before checking their income and expenses. Business owners can now see where their money is going and where it’s coming from, 24 hours a day, 7 days a week.
3. Collaboration Made Easy
With the cloud, business owners and their advisors have the information they need, when they need it. This makes collaboration a cinch, whether on the go, at home or in the office.
Today, advisors living in a pre-cloud world are spending up to 35 percent of their time chasing down documents and answers from clients.
Cloud advisors and business owners can leverage solutions like Hubdoc to automatically centralize key financial docs. This reduces the friction of audit-proofing a business’ books and simplifies collaboration. Documents are secure in the cloud and accessible from anywhere. This means accountants and bookkeepers have the documents they need, when they need them. It also gives them greater control of their time.
4. Cloud Software is Always Improving
One of the magical parts of cloud software is the ease with which providers can push updates. This is different from desktop software where the version you buy is the version you’re stuck with. And where upgrades only occur when you purchase an updated version. Cloud software updates happen on the fly and without extra cost to the user.
Many cloud software companies ask their customers for feedback. They use that feedback to contribute to their product roadmap. This means customers see the results when the software is updated.
5. Backup is a Breeze
When most of us think of backing up our data, we often delay it because something “more important” came up. Manually backing up data is a pain.
Thanks to the cloud and the deep integration between bookkeeping software and their add-ons, backup is automatic. In the best of cases, it happens as part of your workflow.
Doing manual work is time that could be better spent on higher value activities. Software is here to help. Cloud bookkeeping in the cloud is a great way to automate and save time. Whether you’re a bookkeeper, accountant or small business owner.
Jamie co-founded Hubdoc with his elementary school friend, Jamie McDonald. They had previously run and sold a software company. Jamie found it frustrating managing the back office of their previous company. Continual questions from their bookkeeper, lots of paper documents, scanning and disorganisation. He knew there had to be a better way to handle small business bookkeeping. That’s why he founded Hubdoc. Jamie is a recovering lawyer as well as repeat entrepreneur. He previously studied at Brown University, followed by obtaining his JD and MBA from the University of Toronto.