Cloud accounting is characterized by the application or implementation of an accounting system that is accessible through the internet (online). Cloud computing is necessitated through the use of an accounting software that is hosted remotely. In addition to enhancing the security and efficiency of your accounting practices, cloud accounting saves time and resources. With cloud accounting, you are able to access your financial data from any location and in a similar vein, it creates ease of access to financial and client data in that data is stored in one place. Since the software is hosted remotely, cloud accounting eliminates challenges such as loss of data through theft or disasters such as fire. Cloud-based accounting software features and functionalities upgrade automatically and this eliminates maintenance costs thus making it cost effective compared to traditional accounting.
Similar to investing in cloud accounting, hiring an accounting firm is a strategic investment choice for your business. While most small businesses are able to handle their accounting needs without professional help, an accountant comes with additional benefits for your business. For instance, an accountant is better positioned to provide you with accurate data and insights regarding savings and investments.
This checklist highlights factors to look out for when selecting a cloud accounting software and hiring an accounting firm.
Part 1 – Selecting a Cloud Accounting Software
1 Does the software meet your accounting needs and skills?
2 How many users can access the software?
3 How reputable is the accounting software?
4 Does the software provider offer flexible plans?
5 Is the software customizable?
6 Does the software meet your budget needs?
7 Are there additional setup fees and costs?
8 Does the software come with add-on features?
9 Does it come with account receivable and account payable tools?
10 Does it include ancillary services?
11 Does the software generate accounting reports?
12 What are its integration capabilities?
Part 2 – Hiring an Accounting Firm
13 What is the firm’s experience in your specific industry?
14 Does the firm have proper data security measures?
15 Do they offer 24/7 customer support?
16 Do they have positive reviews online?
17 Is the firm conversant with online accounting software?
18 Do they have a flexible pricing plan?
19 Does the firm have a secure end-to-end client document sharing?
Notes:
- Popular cloud accounting software options in the market include QuickBooks, FreshBooks, Sage 50cloud, Wave Accounting, Xero
This is the final checklist in the “Small Business Checklist” series. Use “Small Business Management Checklist” in site search feature to view all of 18 checklists.
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