4 reasons to use cloud-based accounting software
September 09, 2015

Cloud-based accounting software applications are becoming more common for businesses of all sizes. According to Forbes contributor Gene Marks, cloud-based technology has caught up with the accounting world, meaning that cloud-based accounting applications can offer businesses all of the benefits of on-site programs and more. Marks said that of the 600 businesses his accounting firm works with, around 90 percent of them use an on-premise type of accounting software. He predicts that many of these companies will switch over to cloud-based software in the coming years. Here are some reasons why businesses may switch:

Access books from anywhere
One of the best things about the cloud is that it can be accessed from anywhere in the world. This can be a major benefit for small and medium business owners who need to see the numbers often in order to make decisions on the go. Without a cloud-based system, those decisions could be based on old data.

Get work done faster
When you can access all your accounting information from anywhere, it makes doing work much easier, and therefore increases efficiency. This can shave minutes off the tasks you do every day, especially if you're using an outdated accounting system.

Most cloud-based systems will automatically update, so you'll have access to any new features that are implemented as they become available, which should increase efficiency as well.

Eliminate costly human error
In older, on-premise software technology, there is a lot of room for human error. Mistakes in accounting can end up costing you a lot of money. Up-to-date, cloud-based accounting applications will allow you to automate more of the accounting processes, which will eliminate much of the potential for human error.

Taxes are simplified
Paying taxes is difficult for businesses of all sizes. It's important to track and report your information accurately all year long so when tax season comes, you can be sure you've written off everything you can and obtained all of the credits afforded to you. According to Fox Business contributor Bonnie Lee, a business tax expert, utilizing a good accounting software solution will ensure that your information is complete and accurate. She also said if you use a good accounting software you'll be safe should you be audited. Lee said that typically, IRS audits are short when the business uses a good software solution because all they have to do us run a cursory review of the software.

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