It's a beautiful summer day, there's a lovely sea breeze, and as you look out of the office window, you gaze at the yachts in the marina. You can't help but picture yourself sitting comfortably on a lavish boat, setting sail to new experiences, and sipping your favorite refreshment. Oh, what a perfect day it would be! However, you're at the office sitting on your desk chair, and the windows in front of you are not providing you with anything as nearly exciting. You have to prepare financial reports and tax returns, evaluate operations and strategize solutions in good time to meet deadlines for the organization to run efficiently. Accounting – not as smooth as sailing, is it?

Sailing smoothly through accounts with cloud accounting. What is exactly cloud accounting?

Whether accounting is your area of expertise, every person must have done some accounting at some point. For some, it might come more naturally, while for others, it is more of a dreaded activity. While we might have little choice of opting out of it, we have a choice about how to approach it. Several accounts management software solutions are available on the market, such as Business Central, Xero, Quickbooks, Freshbooks, Wave, Sage, and Shireburn, to name a few. Every choice reflects our chances at life, and choosing the best one to fit your needs, might be confusing. This is why we are here to help you make an informed decision.

When heading to new waters, fear is a typical response. Yet, letting fear acquire over room for opportunity would risk stagnation. With a solid software solutions background and ample accounting experience, we feel we must cultivate a positive approach toward new horizons. Perhaps anyone who has already implemented Cloud Accounting can appreciate the difference between traditional and cloud accounting software. For anyone who hasn't, we're eager to share what makes Cloud Accounting stand out and how it will help your business to thrive.

What makes a good accountant? An informed one

Can you imagine sailing a ship without instruments? No matter the captain's qualifications, if not in the knowledge of the waters and equipped with the necessary devices, the ship will sail with difficulty, with an added risk of making it back safely to the port. With cloud accounting, you can sail through your accounts without concern about availability or access. Before the cloud, most accounting software was desktop-based, whereby the actual application was installed and used only from an office desktop computer. The latter had several drawbacks, including limited access to your data, the need for constant software updates, and the ongoing costs of backing up all the financial information.

With cloud accounting, you can do it all, anywhere, any time - from invoicing to Bank and credit card syncing, payables and receivables, customer payment collection, financial statements, profit and loss statements, balance sheets, cash flow statements, and access for accountants as well as tax professionals. All you need is an internet connection, and you'll have access to your actual business numbers 24/7 from any location at your service. Cloud accounting software embodies all functions of traditional accounting software with added benefits. Without a desktop application, users can log in to an always up-to-date online solution where data is safely stored on a cloud server. In addition, most cloud platforms have an open API, allowing third-party software to connect with your system and providing even more value to you as a business owner. If all of this has you intrigued, it's just the start! Let's dive into all the benefits of cloud accounting.

Benefits of cloud accounting

• Access your accounts anywhere. With cloud accounting, there's no need to work from one central office-based computer. With an internet connection, you're free to access your data anywhere at any time.
• Access to real-time information. Achieve real-time reporting with up-to-date bookkeeping and bank reconciliation. A quick run-through of the firm's financial situation is vital when looking at your cash position, planning future spending, and making significant economic and strategic decisions as a management team. Real-time access to centralized financial data enables leaders to spot issues early enough to prevent them from developing into more significant problems.
• Automations, live bank feeds and integrated online payments. Get rid of boring clerical and admin work related to data inputting. Live data from your bank account can be connected to your accounting platform to speed up bank reconciliations and offering a more accurate view of the bank balances. Automate invoices, reminders and payments where customers or creditors can automatically pay without further ado straight to your preferred bank account.
• Work with the latest software version. Software updates are no longer your concern. Once you log in to your accounting platform in the cloud, you always use the newest software version. Your software provider will handle security fixes; all you need to do is sign in and start working.
• Get rid of expensive server rooms. When working with accounting, bank professionals, consultants, and advisers, access to your accounts can easily be granted safely and securely. All data is stored in Microsoft servers with a high levels of security, such as encryption, which are applied to limit access to authorised personnel. Automatic regular backups are also handled by Microsoft to eradicate the risk of losing vital financial records.
• Accuracy. There is no room for error created through manual input when using spreadsheets. Besides automatically categorizing transactions and calculating taxes, with cloud software, invoices, payments and shipments can be matched, flagging any errors encountered.
• Ease of compliance. With the automation of local and international tax calculations, cloud accounting software helps ensure compliance with all applicable tax regimes. As a result, accurate financial statements, quarterly tax estimates, and yearly tax returns are generated, helping business owners avoid under-reporting tax liability.
• Scalability. Cloud accounting software is essential for small and medium enterprises to scale without compromise.
• Access to the app ecosystem. A range of third-party apps and tools can be added to expand your core business system. Apps such as cash flow forecasting apps, online invoicing apps, and industry-specific project management tools, to mention a few.
• Customisation. An element of personalisation provides users with the most relevant metrics for their disposal, facilitating the processes according to every individual's needs.
• Efficiency. Staff members are redeemed from scrambling through disparate systems to consolidate data and meet deadlines. Since accurate and current data is available to everyone across the organisation, staff members can make informed decisions enhancing business performance.
• Flexible pricing. Cloud accounting tends to be less costly and more efficient than traditional accounting. Apart from flexibly catering to the needs of the enterprise, when considering all the functionalities, possibilities, and benefits of cloud accounting, it becomes almost natural to understand that the costs are far more reasonable when reaping the benefits provided by the system.

Opening up horizons. How can cloud accounting improve your finance department?

When connecting Business Central with your bank, transactions can seamlessly flow into your bookkeeping software which will be ready for you to match against your bills and sales invoices. Communication with online supplier accounts is facilitated through which invoices can be processed without the need to type any of the information yourself - saving time and reducing room for error. Payment facilitators also allow for a more efficient payment method for your customers, reducing time and admin costs. In sum, all these functions will stimulate better insights into your financial ongoings and improve reporting and decision-making, which, in turn, strengthen the prospects of your enterprise.

Ready to sail away? Switching to Microsoft’s Cloud Accounting software, Business Central

Finding yourself in a position where you acknowledge it's time to move on from using Spreadsheets to grow further, you are now induced to switch to Cloud Accounting - but how can you do so? Where do you start?

1. Timing is key. Perhaps you would be inclined to switch towards the end of the financial year. Yet this time might be pretty busy for SMEs who might struggle to prepare the necessary data for a smooth switch. Planning the shift throughout less active months when operations are not at their peak can allow for a plain sailing transition between the two systems.
2. Determine which data is necessary to export to the new system. Moving all the accounting history to the new system might not always be required as there is little chance you'll refer to past information regularly. The accounting history tends to be exported to a backup file while any uncleared transactions are transferred to the new software. Consulting with the system specialists to advise accordingly is always good practice.
3. Prepare ahead. Acquaint yourself with the requirements of the accounting software formats, such as any text limit specs and date format, for instance. Reviewing data to clean up current accounting records helps provide a smoother transition. Where in doubt, reach out to a specialist to walk you through the process.
4. Operate with both systems in parallel while in transition. While implementing the new system, it would be advisable to keep both systems running till the new system is fully implemented and tested. This process might range from a few days or a little longer, depending on the size of your operations.
5. Give it time. Be kind to yourself when trying out your new system. Just like any other thing, new things involve an indispensable learning curve. There might be new features to learn about, but the more you know, the more you can benefit from the system. While the service providers provide you with ample resources, materials, and guides to walk you through various scenarios, don't hesitate to reach out for support from your service providers if need be.

Afraid of deep waters? Fear not, as we're here to help! 

Change doesn't have to be a leap in the dark. Speaking with specialists in the field can make unknown waters known, reassuring you of a smooth sail towards your destination. Data can seamlessly be migrated from your present accounting software - Xero, Quickbooks, Freshbooks, Wave, Sage, or Shireburn, to Microsoft Business Central without fear of losing any accounting data.

Being a well-established software company providing software solutions, On Point Ltd. has helped various enterprises efficiently manage their business, improving their experience and reaching their maximum potential. The healthy mix of product consultants, product developers, and business consultants at On Point Ltd. strikes a healthy balance to meet the needs of their esteemed clientele. 

When your staff members look into open windows on their desktops, they need not be overwhelmed. Cloud accounting can provide the clarity your organization needs, and the ongoing support from your service provider can help your staff be informed to make the right decisions. On Point can help your team help themselves with cloud accounting.

For more information, visit On Point Malta - Accounting, Business & ERP Software Company or contact On Point on +356 2722 0597/ +356 7906 5343

Author: Lucille Cachia