3 Key Cloud Accounting Features That Increase Efficiency And Productivity

Cloud accounting systems can drive greater efficiency by streamlining processes and enabling distributors to maximize the power of data.

Cloud solutions allow businesses to eliminate manual activities and receive real-time visibility into important information. Benefits of the software include improved business performance, better accountability and customization capabilities.

Here are three key features of cloud software, as outlined on the NetSuite website.

1. Accounting: Gain access to key financial data, including delinquent payments. A cloud-based system will also convert sales orders into invoices with the click of a button, which cuts down on paperwork and increases efficiency. There’s no duplication of effort since the system automatically transfers the data from an order and turns it into a bill. After invoices are sent out, the system can automatically issue delinquency notices to customers who are past due.

   The system supports accounting compliance by constantly tracking changes and entries, and it will also monitor data to ensure applicable accounting regulations are being met. In addition to reducing the chances of mistakes being made, eliminating manual processes enables companies to close the books faster, and reconciliation time will drop dramatically since the financial data is always current.

2. Fixed asset management: Cloud accounting systems provides automated defaults for asset creation, and assists in depreciating and retiring assets. For instance, many cloud-based solutions support standard depreciation methods like straight line and fixed declining, and can easily manage different assets with multiple depreciation rates. The technology is capable of generating various reports depending on your needs, including financial depreciation, reporting depreciation and tax depreciation.
3. Order-to-cash and procure-to-pay workflows: Cloud accounting solutions simplify the billing process and create an automated order-to-cash process, driving revenue and collections. Businesses will maximize efficiency by replacing manual, paper-based processes with streamlined workflows.

Another crucial component of such systems is that they break down silos to create a centralized repository of information. Disparate systems show different versions of the truth. An integrated approach, meanwhile, enables businesses to consolidate data so there’s a single version of the truth.

In other words, it puts everyone on the same page, leading to greater efficiency and effectiveness. Businesses reduce errors and improve productivity when all departments work with the same sales, financial and customer information.

At the end of the day, you want an accounting system that’s going to work for you, rather than the other way around. Far too much time and effort goes into manually inputting data and initiating processes that could be done automatically. By leveraging a cloud accounting system, companies can achieve more efficient operations and become more productive.