Many small business owners struggle in the beginning with how to manage their finances. If you are trying to manage your business yourself, your first idea might be to use the top-rated and easy-to-use program, Excel. While it is a great program, it might not be the best option for a small business owner or accountant to manage a business’s accounting. Find out if cloud-based accounting might be a good change for your business.
In this blog, we’ll explore:
- What is cloud accounting?
- What are the pros and cons of using Excel?
- What are the benefits of switching to cloud accounting?
- Why is Automa8e the best option for your small business?
- About Automa8e
What is cloud accounting?
Cloud-based accounting is information stored in and accessed through an Internet or intranet connection. This means that you can easily access your business’ financial information from anywhere in the world, and easily share that information in real-time with anyone else with the appropriate permissions.
What are the pros and cons of using Excel?
Excel is a trusted program among many accountants and business owners. It is helpful software for business functions but is not the best option for managing your business’s accounting. Many online resources are available to help you learn some of the more advanced features of Excel. Some pros of using Excel are:
The program is inexpensive. Many businesses use Microsoft, which means you automatically have Excel on your computer. It is cheap and does not require any upgrades.
It is easily accessible. Because Excel is so popular as part of Microsoft Suite, it is accessible to many business owners.
You can share spreadsheets with multiple people. Excel makes it easy for multiple users to share and use spreadsheets.
While there are benefits to using Excel for your business, this program has some disadvantages, especially when compared to cloud-based accounting.
There is a higher chance of human error. It is easy to make one copy and paste error, affecting the entire spreadsheet.
Creating a spreadsheet with formulas takes a lot of time. It can be difficult for the average Exel user to create a spreadsheet that accurately displays the necessary information. A lot of time must go into making the proper Excel spreadsheet.
It is an overly complex program. Sure, Excel is easy to use at a beginner level, but as your business grows, you will realize how complicated the formulas can get. Creating a spreadsheet to manage all your business accounting would require lots of Excel training.
It cannot categorize expenses or auto-fills. Cloud-based accounting quickly categorizes expenses and auto-fills data, while Excel requires lots of manual data entry. Human data entry leads to a greater level of error.
Not compatible with other business applications. Excel does not have options to merge with other applications you might need to use for your business.
What are the benefits of switching to cloud accounting?
Excel might have been a great program to start your business with, but you could benefit significantly from switching to a cloud-based accounting platform. Let us look at just a few of the many benefits.
1. Your data is secure.
You do not have to worry about computer crashes, viruses, and power outages deleting all your financial data. Cloud accounting keeps all your data secure because you can always access it without having software downloaded. It also keeps you informed about who is logged in and viewing or editing your data.
Additionally, your data will remain safe from loss or physical damage. Storing your data in the cloud means that you will never lose it. It will be secure and accessible from anywhere in the world. Having your financial reports and information on the go is always helpful.
2. Smaller chance of human error.
If you choose to use Excel for your accounting needs, you should understand the risks of human error. All the copying and pasting of information could make way for big mistakes. But when all your data is on the cloud, there are auto-fill features and fewer chances of error.
3. Double-entry accounting method.
Cloud-based accounting programs utilize the double-entry accounting method. This means that each bit of financial information entered your software is stored in two unusual places – the journal, which has a list of all entries, and the ledger, which has the entries organized by account. This double-entry method helps protect your financial data and prevents human error. Excel is a single ledger software.
4. Data backup and recovery
You do not have to worry about constantly backing up your data with cloud accounting. Since it is on the server, it is continuously updating itself and backing up your data. Another nice reward is that you do not have to upgrade the software. The program developers can update whatever they need to overnight. That way, you do not have to worry about doing it yourself.
Why is Automa8e the best option for your small business?
Automa8e is a cloud-based accounting program for small business owners, accountants, and freelancers. We offer a variety of functional tools that help you manage bookkeeping, generate reports, and more. The benefits that Automa8e offers are extensive.
1. It will save you time.
Using Automa8e can save you valuable business time because it has so many features. You can track sales and purchases, manage invoices and suppliers, perform accounts receivable and payable, and so much more. You will not be running the risk of mistakes by manually entering large batches of data.
2. Automa8e is an affordable software option
Besides being priced, Automa8e also saves you money in other ways. Human errors can cause you to lose money. With Automa8e taking the manual work out of your bookkeeping, your business is at far less risk of making mistakes, saving you money.
3. It provides real-time data to manage your business better.
Automa8e is your go-to accounting system for your business’s needs. It provides your personalized dashboard where you can keep an eye on all your data briefly. Once you have entered your data, Automa8e generates all reports automatically. There is no need for you to manually create your financial statements – they are created for you. This feature allows you always to be aware of your cash flow and your business’ exact financial position at any moment in time.
Not only do you have your day-to-day and monthly accounting automated for you, Automa8e can also help you calculate your taxes. Whether you pay your taxes quarterly or yearly, Automa8e can keep track of your deductions, your income statement for tax purposes, and help calculate your overall tax liability. Cloud technology is what makes all these features possible.
About Automa8e:
Automa8e is an AI-powered accounting software and document management solution that empowers businesses in Singapore by delivering invaluable information and practical guides for a wide range of business functions and day-to-day operations. At Automa8e, our mission is to provide businesses with the knowledge and insights necessary to make intelligent decisions, enabling them to thrive and succeed. We are committed to sharing valuable information and aim to be the trusted partner that empowers businesses to achieve their goals through informed decision-making. With our comprehensive suite of tools and resources, we are dedicated to supporting businesses in Singapore on their path to success. Schedule a call now and discover how Automa8e can add value to your business.