Today we're going to discuss the benefits of cloud bookkeeping. More specifically, we'll cover the perks that come with cloud bookkeeping for dental practices. But before we delve into the benefits of cloud bookkeeping, let's first cover this elusive space we call “the cloud.”
The cloud is essentially virtual storage that can be accessed from wherever you have an Internet connection. Instead of saving files to your computer’s hard drive, which can only be obtained by logging on to that specific computer, you can save all of your data in the cloud. Then, you can retrieve it whenever, wherever, and with whatever smart device you have on hand.
Companies around the world are using this innovative way of saving and sharing data to grow their business and ease the burdens of everyday tasks.
Two Roads encourages dental practices to utilize cloud storage, especially when managing the complexities of business finance. When they do, they find the bookkeeping and tax filing process much easier.
They also regularly enjoy these five perks of cloud bookkeeping:
1. Accessibility
Cloud-based bookkeeping allows you around-the-clock access to all of your financial information from anywhere you have an Internet connection. If you’re a dentist who practices at different office locations, you won’t have to worry about which hard drive you stored that important file on. Instead, you can simply log into your account, retrieve the necessary information, and be on your way. Cloud bookkeeping also allows multiple people to access your records with their own username and password. This is very beneficial because if you’re away from the office, be it at a meeting or on vacation, those who need to obtain the information to run your practice can easily do so from their phone, tablet, or computer.
2. Efficiency
Cloud bookkeeping is much more efficient than the traditional methods of pen and paper and spreadsheet software programs. The cloud offers real-time backup of information. Imagine your computer crashes right as you finally finish entering six months' worth of accounts receivable. Although you did click “Save” somewhere along the line, all of the data is corrupted, and you have to start all over.
Did we mention your taxes are due tomorrow? Just kidding, but if this really did happen, you would be in a pretty sticky situation, especially if your schedule is booked with routine patient care. However, if you’re bookkeeping in the cloud, none of your entries would be lost! That’s because cloud storage backs up all of your information in real-time.
Cloud bookkeeping is also more efficient than other bookkeeping options because it allows you to share your financial records with related parties without everyone being present in the same room or even in the same country. If you were to hire someone from out of state to handle your business financials or outsource your bookkeeping to a company like Two Roads, everyone in the party would have 24/7 access to your account information and would therefore be able to complete and verify all data entries efficiently.
(Don't miss this recent post where we also discuss how outsourced cloud bookkeeping comes with the benefit of greater transparency)
3. Accuracy
By utilizing cloud bookkeeping software, you can better ensure that your information is always up-to-date and accurate. Not only does the cloud backup every entry in real-time, cloud bookkeeping software stays current through automatic updates. If cloud technicians have figured out how to make your program run better, you’ll be able to use the new version of the software as soon as it is installed and made available to the public. You will no longer have to make version 2.0, 3.0, 4.0 purchases to make your job easier.
Because cloud bookkeeping encourages multi-user access, you can share bookkeeping duties with your office manager or other qualified staff members. Not only does this relieve the stress of the one primarily responsible for your practice’s bookkeeping, but it also improves the accuracy of the data because more people can review the information.
4. Profitability
As a working professional, you understand that time is money. Cloud-based bookkeeping saves you a lot of time, which in turn saves you a lot of money. Cloud bookkeeping also saves you money by decreasing your expenditures.
You won’t have to buy extra office supplies like printing paper and ink cartridges.
No more buying additional hardware to back up more of your files
You won’t have to buy software updates either
Cloud bookkeeping software is also easy to use, so it requires very little training. It also increases productivity, so you’ll be saving even more money on labor costs.
For starters, cloud bookkeeping increases your profitability by saving you money. But it also does so by helping you make more money. Think about how much time you spend right now doing bookkeeping the standard way. What could you be doing instead? How many more patients could you acquire if you switched over to the cloud?
(Next, read about protecting yourself from these three common profit thieves in small businesses)
5. Security
When it comes to business financials, security is of the utmost importance. As a dentist, you are, of course, concerned with protecting your practice’s information. But you are also responsible for protecting the information of your staff and your patients.
Cloud-based bookkeeping is far more secure than bookkeeping by hand or using conventional software that backs up to your hard drive or USB. Information in the cloud cannot be stolen because it is not tangible.
Data stored in the cloud is also protected by many complex firewalls. This means it is nearly impossible to hack. The average computer’s hard drive, however, is susceptible to even the most elementary spyware and malware infestations.
At Two Roads, we treat our partners as family, which means giving them the best results with the best technology available. We use cloud bookkeeping software to guarantee that your financial records are accessible 24/7 (because they are your records!) and make sure they are always accurate and entered in an efficient manner.
We work hard to increase your practice’s profitability. Why? Because we believe in helping you make sound financial decisions so you can continue doing what you love!
We also understand that security is a priority, especially in the medical industry. That's why we take every measure possible to make sure all of your information remains confidential.
If you would like to find out more about the specific services we offer through cloud bookkeeping or how your dental practice can reap the most benefits by outsourcing your bookkeeping, please contact us: 865-212-0063.
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This post was first published in 2015, but it was updated in 2021 just for you.