What Is Cloud Accounting?
Cloud accounting is an efficient, secure way to manage your finances (or your clients’ finances) using modern internet technology. Cloud accounting works by storing your data remotely on multiple servers in different physical locations, instead of a single harddrive on the computer in your office. This means you can access your accounting data virtually anywhere as long as you have the right software and password.
For homeowner association (HOA) or condominium association (COA) managers, cloud accounting offers multiple advantages when compared to traditional methods of accounting. Using cloud accounting to manage your clients’ HOA/COA financial accounts is fast, easy, and can help both you and your client cut costs. Cloud-based accounting software for associations, like CINC Systems, also include automatic integration for management features like collecting resident fees.
By switching to cloud accounting, your association management business can offer even better service to its HOA/COA clients. Plus, you’ll be able to reduce time spent on tedious accounting activities like balancing the books or physically depositing checks. Learn more about cloud accounting and you’ll quickly see why this is one of the best choices for HOA/COA managers.
Cloud Accounting Vs. Traditional Accounting
To further explain the question, “what is cloud accounting?”, it’s important to highlight the key differences between cloud accounting and traditional accounting. Both types of accounting include financial management, such as monitoring account transactions, preparing balance sheets, and providing useful data about an organization’s fiscal health. However, the way they operate is fundamentally different.
Traditional accounting methods may utilize lots of physical paper documents, files, and spreadsheets. Traditional accounting can also include software programs to manage finances on a computer. Typically, a user will install the software on their computer, then begin storing the data on their computer’s harddrive.
With cloud accounting software, your data is stored remotely in a virtual network of secure servers known as “the cloud,” not your computer’s harddrive. In some cases, you don’t even need to install any software — you may be able to access your cloud accounting system over a regular internet browser, the same way you can login to many popular email services without downloading or installing anything.
Cloud accounting is more convenient, secure, and often easier to use than traditional methods of accounting.
How Cloud Accounting Benefits Association Managers
For association managers, cloud accounting software such as CINC Systems can streamline your business and help you do your job more efficiently. Often, performing accounting services for your clients can feel daunting if you don’t have an accounting background. There’s a lot of important data to track and it’s vital to ensure that this data remains secure and well-organized. If you’re not careful, association accounting can become overwhelming.
Luckily, cloud accounting software automates many aspects of HOA/COA accounting. Most association managers discover that switching to cloud accounting enables them to work much faster and more efficiently. It can turn a tedious or confusing task into a simple action on a laptop or tablet. Listed below are several reasons why association managers love accounting software.
1. Go Paperless
First, cloud accounting software lets your business go paperless. Once your data is uploaded to the secure cloud, you can shred documents. You can also connect your cloud accounting software to your clients’ bank accounts, which means their financial data will automatically update online. This eliminates the need to receive paper statements from the client’s bank.
Going paperless means a more organized office space and reduced business costs as well. Plus, it’s environmentally friendly! Everyone wins with cloud accounting software.
2. Improves Security
Some individuals question the security of cloud accounting software. Is it really safer than traditional methods of accounting? What if someone hacks the cloud? Once you understand how cloud software works, you’ll realize that it’s often much easier to steal files or hack into a personal computer in an office.
With cloud computing, data is encrypted as soon as it’s uploaded. This means that the information becomes “scrambled” using a special key. It can’t be unscrambled unless the computer or device accessing the data also has that key. In other words, even if someone were to hack into the cloud and steal your client’s data, it’s highly unlikely that they could decode it.
3. Get Real-Time Updates
Cloud accounting helps association managers save time by providing real-time updates from a client’s bank account. Using a feature called automatic bank reconciliation, you can synch each of your client’s accounts to your software’s dashboard. This means you can access the data in one place instead of logging into multiple different websites.
The client’s accounting data then updates in real-time, providing information about withdrawals, deposits, and other transactions as they occur. By monitoring these transactions live, you’ll be able to spot any potential overcharges, fraud, or financial misuse. This helps you protect your client’s finances.
4. Streamlines Payment Processing and Communication
Cloud accounting software also streamlines payment processing and communication. With cloud accounting software for HOA/COA management, you receive great features that enable you to create an online payment portal for your clients. This means that residents can pay fees, assessments, and penalties online. The funds are then automatically deposited into your client’s accounts.
Additionally, cloud accounting software makes it easy to send financial reports to your clients. Using CINC Systems accounting software, you can generate financial reports to send via email. Reports can be customized to specific data sets including transaction categories, such as expenditures versus income, or specific time periods.
Try CINC Systems for Cloud Accounting Software
Cloud accounting software can truly change the way you approach accounting for your HOA/COA management business. It offers greater security, convenience, and improves overall efficiency. You can use cloud accounting software to go paperless, work remotely from any computer or tablet, monitor client transactions in real time, and more.
If you’re not using cloud accounting software to improve your HOA/COA management company, try CINC Systems today. Just click here to request a free software demo.
Related Frequently Asked Questions
- How Can Association Management Companies Working with HOA/COAs Benefit from Association Management Software?
- Top 10 Tips When Managing HOA Accounts
- How Association Managers Benefit from CINC’s Accounting Software
- What Is Association Management Company Accounting Systems?
- Is My Association Management Accounting Data Safe When Using Software Tools?