Cloud-Based Financial Bookkeeping: Making the Switch to QuickBooks
Cloud-Based Financial Bookkeeping
Businesses worldwide are starting to move towards cloud-based software to manage their operations. According to Flexera’s yearly report on the State Of The Cloud, the rate at which businesses switch is rising.
Of course, switching from a traditional setup to one based on the cloud can be daunting. There are ways to make this transition as smooth as possible, all with the aid of Cloud-Based Financial Bookkeeping Software and Services.
The Benefits of Proper Bookkeeping
According to a research article from the Journal of Accountancy, many businesses are also starting to understand the importance of analytics skills. About 61% of 2,100 interviewed CFOs said that the ability to parse through and interpret this data is deemed mandatory for aspiring finance employees. However, all this depends on whether or not the business practices proper bookkeeping procedures.
Proper bookkeeping can help when you wish to develop plans for business expansion or just when you want a clear overview of your business metrics. Having proper procedures for bookkeeping can help in accounting and data analysis. Some sources, such as the UNC Kenan-Flagler Business School, consider data analysis an important part of business decision-making.
Approaches towards Bookkeeping
There are a variety of ways to approach bookkeeping. Some business owners do this alone, especially those who want a more direct hand in daily operations. Some companies employ professional bookkeepers, either as full-time employees or contractual workers. This does help free up the owner’s time to focus on other avenues of the business, but it also tends to be the pricier option.
However, with the arrival of digital innovations, businesses are using dedicated bookkeeping software to manage their financial data. These accounting and bookkeeping suites offer real-time tracking of your business inventory management solutions and easier access to financial reports and statements.
Businesses are hectic, especially in fast-paced retail businesses that operate on online marketplaces. Regarding the many responsibilities already in place, why not leave your bookkeeping needs to expert firms? Through remote or virtual bookkeeping options, business owners can contact an online bookkeeper to aid them in business assessment, monthly financial reports, tax filing and planning, and many more processes.
Adapting to your new Cloud Solution
Many businesses use the default accounting software bundled with their desktops, such as Microsoft Excel, for their Bookkeeping purposes. If your traditional bookkeeping and accounting solution in place has an online mode, this should make the switch easier for most. Upgrading to a cloud-based solution should not be too hard for those preparing for it.
Take Time To Learn The New Software
Although it may be enticing to dive into the software immediately, you may find yourself more confused with how it works. Make sure to check out some online tutorials to make sure you know what to expect. This is also the time to ask a few questions regarding how you’re managing the transition:
- Are you handling the process well? Does this help your employees communicate and collaborate easier?
- Does the new software aid in business processes? Are there efficiencies gained from using this new system?
- What features do we make use of? Does it allow us better financial data access than our old software?
Proper Timing For The Transition
Timing, when your business starts the transition, is important to make adding in your old financial data easier while your cloud-based bookkeeping service updates itself with the new data. Two events that can be a good time to start this switch include:
- The start of the fiscal year
- After a major cash reconciliation or Accounting Cleanup
A good idea to implement is to do this transition in manageable shifts. Ensure that the date when you initiate this switch should be during a period where data changes and interruptions are reduced, such as your business’ lean seasons.
Ready Your Data In Advance
In preparation for your transition, organize what data needs to be moved for a seamless transition. Data importing may be easier if your prior software solution has an online mode. However, preparing your data regarding the new cloud services you will use is still a good idea.
This may involve renaming certain variables, rearranging your data in a new way, or other naming conventions that affect the software. Cloud-Based Financial Bookkeeping services tend to have a detailed instruction page that will guide you through this formatting process, should you need it.
An Overview of Quickbooks: A Great Bookkeeping Tool
For our company, we use QuickBooks Online to organize and record all of your financial invoices and receipts. This service uses a monthly subscription model, which provides both us and our client with an online platform that’s both mobile and easy-to-use.
This software is an example of SaaS-based accounting software, which uses the web to host software. This gives the benefit of not relying on a physical server and new updates and features integrated immediately without downloading.
Here is an overview of some of the features that come with Quickbooks online:
- Creating Financial Reports and Statements
Quickbooks allows for creating clear financial reports and statements, giving you access to real-time business insights. Reports such as cash flow statements, balance sheets, and many others can be accessed through the QuickBooks Dashboard. Reports can also be customized to emphasize the most relevant data to your business.
- Bank Feed Setup and Monitoring
Tracking transactions from multiple banks is simple, thanks to QuickBooks’ bank feed integration system. Their system receives transactions immediately as soon as it’s registered and categorizes them into easily manageable categories. Your invoices will be automatically sorted as income, while expenditures will be categorized with expenses.
- Integration with Online Marketplaces
Managing your inventory is made simple through QuickBooks’ ability to sync with various online platforms. eCommerce sites such as Shopify, Amazon, eBay, and many more can easily connect to your QuickBooks client. You can then use the software to see your available stock, sales figures for various items, orders from suppliers, and even alerts in case of low stock.
- Tax Management Options
The QuickBooks software suite also provides users a wide range of tax analytics tools to keep up with their tax situation. Their software allows you to check in on the total taxes you owe, helping you optimize your tax planning strategies.
- Mobile App Integration
CFOs and Business Owners on the move will appreciate the mobile app option for QuickBooks. This helps you to capture business expenses by taking photos of business receipts and attaching them to your bills. The system can categorise these expenses and show them to you through reports and graphs that tally your profits and loss, all in the palm of your hand.
How Free Cash Flow Aids Online Businesses Using Cloud-Based Financial Bookkeeping
At Free Cash Flow, Cloud Based Financial Bookkeeping is but one of the many services we offer to various clients. Whether you are an Amazon FBA seller, SAAS Agency, or another type of online business, our team is ready to offer tax and accounting services honed by 20 years of service. We offer various cloud-based bookkeeping and accounting services suitable for both big and small firms.
Even entrepreneurs such as Content Creators and Social Influencers stand to gain from our experienced team of professionals. We can provide consultation regarding affiliate marketing, sponsorship deals, and monetization through merchandise and other facets.
We deliver our bookkeeping services through popular accounting software such as Quickbooks and Xero, both options that support the automation of various business processes. We also use these software solutions to aid in managing your inventory and tracking all records and cash flow transactions at all times of the day.
No matter the company’s size, keeping tabs on your bookkeeping is always necessary. This is especially important in gauging your business’s financial health and vulnerabilities. Proactive business owners who wish to get ahead of these problems and those seeking expansion and growth opportunities can contact us for various strategy calls detailing what measures they can take for revenue expansion.
If you want to use our services, you may schedule a free Tax/Accounting Strategy Session to discuss potential options. Alan Chen, CEO of Free Cash Flow and a CPA Accountant with more than 20 years of experience, will be taking your call to discuss the various benefits of bookkeeping services in meeting future online business goals.