Why desktop accounting is holding back your business

There was a time when desktop accounting software was the standard for any business looking to get a handle on its financial management. But over the past five years or so, a new kid has appeared on the accounting software block.

Cloud accounting software has taken the basic principles of the desktop approach, enhanced and improved them and moved the whole process online. In the same way that you can log in to your Gmail account online from your mobile smartphone, you can now log in to your accounting software, directly through your web browser.

‘But what’s this got to do with my business?’ I hear you ask. The answer is ‘A lot!’

Cloud-based business solutions have created brand new, innovative ways to manage your business. So if you’re still running your company from a desktop system, you’re missing out on a huge number of potential benefits that the cloud could bring to your business – and no-one wants to be last to that party.

So, how exactly is your desktop accounting system letting you down? Let’s take a closer look at the limitations of desktop – and how the cloud opens up brand new ways for you to improve your business functions.

How desktop accounting holds you back

Traditional desktop accounting software has a key drawback: with your numbers stored on a local drive, it makes it difficult to share your data effectively.

If you’re using a desktop system, working with your accountant and business advisers can be a complex and convoluted process. Data has to be copied across to USB memory sticks, or emailed back and forth, with all the inherent time and security considerations that this brings about.

That holds back your business and makes it difficult for your accountant to get the detailed overview of your business information that’s needed to give truly insightful advice and strategic guidance.

But with cloud accounting, you, your management and finance teams and your business adviser all have instant access to your business data.

How cloud accounting helps you collaborate

With a cloud accounting system, like Xero online accounting software, none of your business information is sat on a local drive. You work by logging in to Xero through your web browser, and all your numbers are safely and securely stored in the cloud.

So, how does that change the business owner/mentor relationship?

When you and your adviser are both working in the cloud, you both have access to the same numbers – instantly and in real-time. And having those real-time numbers shows you the exact status of the business right NOW, as well as providing the ability to build forecasts of your future financial position too.

When you’re about to make a big business decision, or want regular guidance on strategy from your mentor, this 24/7 access to your numbers is a real game changer.

You can meet in person with your business adviser, talk on the phone, or have a Skype call – whichever is most convenient for you. And with the same numbers, reports and key performance indicator (KPI) breakdowns in front of you, you can review your ‘business heart beat’ in truly granular detail.

The value of a cloud business adviser

This ability to get such a drilled-down overview of the health of your business adds tremendous value to your advisory relationship.

Your business adviser can look for the potential issues in your monthly financials, spot the opportunities for sales growth and help you improve the overall efficiency of your financial model.

And having this information at your adviser’s fingertips leads to extremely productive conversations about the current health, and future success, of your business.

  • If you’ve got money in the bank, but are still seeing a poor net profit figure, your adviser can go through the data to spot the issue – and suggest a resolution that will put more focus on profitability.
  • If you’re looking to make a substantial purchase, your adviser can review your actuals and longer-term forecasts to give you an iron-cast viewpoint on whether you have the cash to make this purchase.
  • If you’re looking to build a strategic growth plan, you have the projected figures you need, and the ability to put metrics and targets in place to measure your growth performance against these goals.

  • In short, working with a cloud-based business adviser gives you a trusted partner, who’s always got their finger on the pulse of your business.

Talk to us about moving your business to the cloud

At Naylor Accounting, our aim is to work with your company to help you achieve your long-term goals while keeping your business in tip-top, race-ready health.

If you’re still basing your business systems around a desktop system, now’s the time to make the all-important move to cloud accounting. We put Xero at the heart of your financial management and reporting, and provide you with the latest third-party FinTech cloud tools to keep you in control of your numbers.

And, most importantly, we bring our years of financial knowledge and business experience to the table.

As your trusted adviser and business mentor, we help you demystify those business numbers and give you the strategic direction and confidence you need to take your business to the next step in the business journey.