Check out these essential elements that should be on your checklist while implementing a modern, cloud-based accounting system.
Cloud Accounting Implementation Checklist
Bookkeeping is not always on the list of priorities for business owners, but it is an important part of a financial strategy. It is absolutely crucial to keep your accounting system up to date. Unfortunately, the accounting system your business used when it was just starting out or relatively small may no longer fit the current requirements.
If you’re looking to invest in a new accounting system that can meet your needs today and in the future, it is most likely to be a cloud-based system. Cloud-based systems can scale up more efficiently than premise-based software. Below are a few of the features you should check for when implementing a cloud accounting system.
1. Flexible Financial Processes
In the past, accounting software came with presets and limitations that a business had to adapt to their needs. Modern accounting systems are much more flexible than that. The system you choose should support customization. It should adapt to your needs rather than the other way around. The accounting system should, in effect, behave like a cloud CPA — be able to generate reports and analyses and deliver results on time.
2. Automation & Accuracy
Older-generation accounting software is contingent on manual data entry. This leads to a costlier process (paying people purely for data entry), a lag in reporting, and expansive room for manual errors. It also limits where and how users can access information.
Modern, cloud-based accounting systems support automated processes for much of the administrative work and should integrate with your other business applications (CRM, Point-of-Sale, Payroll).
3. Real-time Course Correction
Yet another drawback of older accounting software is the lack of insight into the business in real time. Also, if you are waiting on bank statements to measure your financial data, it will take time to show up in the accounting system. You can analyze data only after a certain time, and by then, problems have become much bigger. Today’s cloud-based systems can spot issues in real time and offer the ability to make changes on the fly.
Before implementing a cloud-based accounting system, ensure that you have all features you need. The system should grow along with your business and not be a constraint. Consider consulting with a cloud accounting expert who can leverage industry experience and offer outsourced CFO services to provide the best value.
We can walk you through this step-by-step!