Have an Accountant? Here's Why You Still Need Cloud Accounting
On the road to success, business owners look for the most practical accounting solutions. Hiring an accountant is a good idea, but it's also important to find an efficient accounting system so management can focus on running the business rather than on the numbers alone. Ultimately, balancing budget dollars with an optimal mix of professional accounting services and a cloud-based accounting system may be the best way to guarantee accurate, timely financial statements.
Manage Professional Services Expenses
Accountants lend professional expertise to business owners, but their services come at a cost. Prior to hiring an accountant, each step of the financial reporting process should be evaluated. For example, compiling expense data is one task that may be completed in-house with the help of a cloud accounting system. Small businesses utilizing cloud accounting can permit individual employees to enter expenses as incurred, rather than asking their accountant to compile the information. Whether the sales team is on the road, or in the office, they could potentially use a smart device to track and record travel expenses, saving accounting work during the year-end crunch time when the cost of professional accounting services tend to rise.
Ensure That the Budget for an Accountant's Time is Well Spent
Accountants have the potential to add value to the overall financial reporting process. Accountants spend less time on bookkeeping tasks than they had in the past and more time providing the financial and tax expertise that many small companies lack in-house. This includes offering guidance on new tax and accounting regulations or standards. When an accountant needs to spend time sorting through shoe boxes of receipts, their time isn't as valuable. Save time by implementing a cloud accounting system to collect and organize financial data. Once entered into the system, an accountant can download the data to determine the company's analytics and profitability. This means accountants spend less time and expense to produce the financial reports and the analysis small companies need the most.
Cloud Accounting Provides Immediate Access to Financial Information
Financial questions arise on a daily basis from bankers, investors and customers. Although accountants strive to be available to their clients, small business owners are often expected to be able to provide immediate answers to profit and loss questions. Rather than waiting for an accountant to calculate monthly profit or determine how much cash is on hand, a cloud accounting system may provide answers to these most common questions. This quick access can save time and improve company efficiency. Plus, hands-on managers can easily manipulate their budgets with anytime access to their current P&L statements through the cloud accounting system.
The amount of time an accountant spends on financial reporting often depends upon complexity of the statements and the amount of work handled in-house. Striking a balance is important. Small business owners must know when to rely on a professional and when to use cloud accounting technology. In the end, the right combination should help management easily make informed decisions and generate professional financial statements.