Skip to content
Cloud accounting

Have you ever wondered what IS cloud accounting?

In essence, cloud accounting is accounting in the 21st Century….

To have a successful business, you have to know your numbers.

This means you need to know not only what profit you’ve made this week, this month, this year, you also need to know next week, next month, next year.

So not the numbers from six months ago, AND you need it in a simple way.

You can access it from anywhere. Any place. Any time.

That’s what cloud accounting is all about.

Cloud accounting is where your software is not held on your desktop. It’s held in the cloud or better still, effectively on a server somewhere else so that it’s safe, secure, and protected from cyber attacks. Which is much easier for a bigger organisation than for you as an individual, so you can access your data from anywhere on any device, whether it’s a laptop, a phone, or a tablet, or even your desktop.

So, why has cloud accounting become so popular?

Well, a number of reasons really…

We’re much more connected these days.

We’ve got mobile phones, which we didn’t have a number of years ago. We’ve got laptops, tablets, etc, we’re always on the move and we want everything at our fingertips instantly, so cloud accounting gives us that because it’s not in one place.

We can log on remotely, access our data. You as the business owner, might not do your own bookkeeping, you might have a bookkeeper who is or can be remote to you. 

They can process the bookkeeping records, produce the information and then send you the reports,  OR you can just log on and go and access, look at it, view it, and download, run the reports yourself.

One thing business owners love is that you can effectively cut down on your bookkeeping time by using a cloud accounting software, like Xero or QuickBooks.

Therefore, your bookkeeper can either cost you less now OR do more for you in the same time.

You can also link your bank and credit card accounts so there are automated bank feeds which can be daily. So no more typing in bank statements. It’s done automatically and synced straight through into Xero for example.

Invoicing

Now with cloud accounting it can be fast and simple to set up and customise your invoices. Within Xero, once the invoices are produced you can email them directly to your clients from Xero AND you can set up repeating invoices to be sent to your customers automatically IF you invoice them the same amount each month.

There is lots of flexibility and you can have custom developed templates within Xero so that it does a lot of the work for you. As I’ve already said, it’s available at anytime, anywhere when you’re online, as long as you’ve got an internet connection and there are different apps for your phones and tablets.

There’s real time collaboration with your accountant as it’s online. This means you can look at the same screen wherever you are, so if you’ve got a query, you can pick up the phone to your accountant and ask them in real time about it!

It is very safe and secure because it’s not on your hard drive. It’s automatically backed up and it’s safe from loss, fast fire, cybercrime, etc.  There are none of the old desktop issues you used to have if you or your accountant were on different versions.

Reporting

There are so many different reports available within Xero or any other cloud Accounting software for that matter.  When viewing reports on screen it is so quick and easy to click through to the original transactions.

So for example, you can run a Profit & Loss Report and you can then drill down. So if you saw a particular figure, let’s say you got a report showing a 12 month picture, you could drill down on a particular month.

Another example is, if you didn’t understand why your marketing costs was so high you could drill into it and eventually get back to the base documentation, if you’ve saved it in the software. 

Then there’s some really great support on line especially for Xero.  There are lots of articles and videos at no additional cost.  Also Xero provides some great technical support as well if you still have problems after accessing all the help text on line. 

There’s no installation or maintenance costs because it’s all internet based. You don’t need to install anything, it is automatically there. You get the very latest versions and updates the minute you log online. There’s no need to download new versions.

Additions and Processing

There are also a multitude of additional “add-on apps” in the Xero eco system – so whether you need a stock system add on or a payment processing app for shopify there are lots of choices which make integrating a doddle  

You can even link in apps that enable you to photograph receipts and send in expenses directly into an app, then with the benefit of bank rules you can effectively cut down the time it takes to process these expenses

Expenses apps like Dext , Autoentry or Hubdoc – which is currently free with Xero make this so easy.  It also means the base documentation is straight in Xero meaning  you don’t have to keep the receipts separately as long as you have the software.  So no more bits of paper everywhere and no more typing in lease agreements can save you a lot of time when comparing to standard accounting software and you can make decisions based on up to date, financial information.

 

If you’d like some more information on Xero and Quickbooks then click here… 

Here at Krystal Clear Accounting we are here to support. If you’d like some help when it comes to accounting software and choosing the best one for your business then drop us an email at [email protected] or give us a call on 0161 410 0020.

It is important that you take professional advice before making any decisions based on the information that you learnt here. While every effort has been made to make sure it is accurate it cannot be precisely tailored to your personal circumstances. This article is for general information only and no action should be taken, or refrained from, as a result of this information.  Professional advice should be taken based on specific circumstances in each individual case.  Whilst we endeavour to ensure that the information contained in the article is correct, no liability will be accepted by Krystal Clear Accounting which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction or decision taken as a result of using any such information.

What are Bank Feeds and how do they work?

Related Articles

[related_posts_grid]

In short, bank feeds create a digital link between your business bank account and your accounting software, such as Xero or QuickBooks.  

This means bank transactions are automatically downloaded into the accounting software. This simple piece of automation, completely removes the need to manually input every bank receipt and payment into the accounting software. 

Having bank feeds in place, saves a HUGE amount of time bookkeeping. That’s because it completely removes the need to manually input bank transactions into the accounting software. 

Saving time bookkeeping isn’t the only benefit for the business…. 

 

 

What is cloud accounting?

What are the main benefits to a business using bank feeds?

Bank feeds automate, what was previously, a time-consuming task of entering all the bank transactions into the accounting software. 

 This saves the business a HUGE amount of time (& money) spent on bookkeeping.  

With bank transactions being downloaded from the bank every day, it means it’s quicker and easier to keep the bank balance in the accounting software up-to date. 

With the accounting software up-to date, the bank is updated daily which gives you a clearer, real-time view of your business’s cash flow.  

This makes it easier for you to plan your cashflow, and take action to improve it. 

There is always the risk of errors being made when data is being manually inputted into the accounting system. It is often time-consuming to find and correct any errors. Also, if an error is large then the Profit & loss and Balance Sheet reports will be inaccurate and potentially misleading. 

 Automating the bank transaction entry previously manual process, reduces the risk of errors being made and ensures that the bookkeeping records and reports are accurate. 

How to Link Your Bank to Xero

Ensure that your bank account is set up for online banking. This feature is typically available from all major banks. 

Log into your Xero account and navigate to the banking section. Select ‘Add Bank Account’ and follow the prompts to search for your bank. 

After adding your bank account details, you’ll see an option to set up bank feeds. Click ‘Agree’ to the terms, then securely log into your online banking portal through Xero to authorize the connection. 

 

Are Bank Feeds Safe & Secure?

Yes. 

Firstly, having bank feeds in place ONLY means bank transactions are downloaded into the accounting system. They do NOT give anyone else access to the business bank account. 

 Secondly, XERO has various security measures in place to give you a piece of mind that your financial data is safe and secure: 

 

  • Encrypted Connections: Xero uses advanced encryption technology to secure the data transmission from your bank to Xero. This means your sensitive information is encrypted during transit and cannot be intercepted or read by unauthorized parties. 

 

  • Compliance and Standards: Xero adheres to high standards of data security compliance, thus ensuring that its practices meet or exceed industry security standards and regulations. 

 

  • Regular Renewals: To maintain a high level of security, XERO requires that the bank feed connection is renewed every 90 days. This process is straightforward and helps ensure that the integrity of your financial data is always protected. 

 

people are connected
KIm Marlor the MD of Krystal Clear Accounting
krystal clear accounting

In Summary

In short, having bank feeds really saves businesses time and money on their bookkeeping.  

 They automate and eliminate what is otherwise a time consuming and error prone manual process.  

 Bank feeds is just one of the ways technology can be used to help business owners improve the financial side of their business.

Request a Call Back: