How can cloud-bookkeeping technology increase efficiency for medical practices? In this article, learn about essential benefits the cloud offers to the medical field, including ease of use for entrepreneurs and decreased time spent on accounting. Read on to discover more reasons for using cloud-based accounting software in today’s technologically advanced world.
As the technological world grows, so does the importance of cloud technology. Technology has changed exponentially in recent years, making it more difficult for medical practices to keep up. The key to maintaining superiority in your field is to make use of this new technology.
Cloud-based accounting applications are increasingly popular for medical practices because they allow entrepreneurs to manage their finances online. There’s no need for setting up additional servers or hardware; everything runs on the Internet through your web browser. This makes it highly convenient if you need accessible records while you’re away from the office.
Medical practices can also save time by using cloud-based accounting programs. An easy-to-use interface is one of the most noticeable benefits of online bookkeeping since entrepreneurs don’t have to spend hours learning new software. Cloud-based systems are also built to be flexible so you can choose the features you use without being burdened by unnecessary software. Since cloud accounting allows you to access your data anywhere, there’s no need for office equipment, so you save on hardware expenses. All of these factors combine to make healthcare accounting efficient and relatively stress-free. Cloud-based accounting software also helps you maintain financial records that are up to date and accurate. The cloud-based system is always available so that you can keep all of your records in one place. In addition to the convenience of online access, several cloud apps offer real-time updates from third-party providers. For example, QuickBooks Online automatically syncs with all third-party accounts such as credit card processors. The result is a consistent flow of information that automatically updates all relevant numbers based on real-time changes.
5 Key Benefits to Cloud Bookkeeping
The benefits of using a cloud accounting solution for your medical practice are numerous. Cloud-based technology can help your medical business grow while decreasing the time spent dealing with accounting tasks. Here are 5 key benefits we have identified for medical practices:
#1 – Ease of Use
The most significant benefit of cloud-based bookkeeping is the ease of use. The key features offered by a cloud-based accounting software program are the intuitive interface and the ability to access data from anywhere at any time. With a cloud accounting solution, you don’t have to spend hours learning a new system while your business continues to grow. You can use your cloud accounting application right away while you continue adding new services and more patients to your medical practice.
#2 – Cloud-Based Security
These bookkeeping software solutions are built to be secure to protect your financial information. Because these applications are hosted online, the data they process is always encrypted. Your cloud accounting software solution doesn’t have any hardware or physical space, so there’s no way to access financial information without the proper credentials. This reduces the chance of unauthorized access to your cloud-based software.
#3 – Affordable Pricing
Most cloud accounting solutions offer affordable pricing. The most expensive system on the market is QuickBooks Online, and it still costs less than $60 a month. As you grow your practice and add more employees to your team, you can easily scale up to a higher tier specifically designed for large businesses. Cloud-based applications allow you to increase your storage space and number of users as your business grows with no additional costs.
#4 – Real-Time Updates
Some online bookkeeping software solutions can automatically update your financial data in real-time. For example, QuickBooks Online automatically syncs with all third-party accounts such as credit cards, bank accounts, or PayPal accounts. This eliminates the need to enter transactions into your books manually. Additionally, cloud-based solutions often offer advanced analytical features that allow you to track your metrics in real-time.
#5 – 24/7 Accessibility
One of the most significant benefits of cloud-based accounting software is that you can access and manage your financial records anywhere. Since these applications are hosted on the Internet, there’s no need for office hardware and equipment. Cloud-based solutions allow medical entrepreneurs to work from home or vacation without disarray on their financial records. Cloud-based applications also provide 24/7 accessibility, so you can always be alerted to any updates or changes made to your system.
Additional considerations
A medical professional or practice can use a cloud-based accounting system to increase efficiency by integrating it into your medical practice ecosystem. For example, if your practice uses a practice management system, you can integrate the two systems. Your PMS will transmit data into your cloud accounting software and vice versa. This option is not available in some cloud solutions, but it’s a great feature if you’re looking to automate your business metrics out of the gate.
The following is a list of cloud-based accounting software services:
Many medical practices struggle with the complicated task of keeping financial records in order. Healthcare practitioners remember having to enter data into patients’ accounts manually, and some even have a hard time making sure all the details about their accounts’ balances are accurate. Cloud-based accounting software is designed to be simple and easy to use, which can help medical practices save both time and money. However, before you invest in a cloud-based solution, be sure you’re getting the right features and services for your business.
The following are 3 examples of how cloud-based accounting software can increase efficiency for your medical practice:
#1 – Automated General Ledger
Most cloud-based accounting solutions are general ledger systems. However, some of these applications provide additional features such as automated journal entries or even automatic posting of third-party payments. These features allow you to enter fewer data and spend less time managing your financial records. You can also use these solutions to manage fixed assets, payroll tax, and expense budgets for a complete financial overview of your business’ performance.
#2 – Sales Invoicing
Cloud-based accounting software solutions can help your medical practice stay organized when it comes to paying bills. Online invoicing and purchase orders streamline the process for purchasing and tracking inventory, which makes it easier for you to manage and maintain your business finances. With a cloud-based accounting solution, you can send and track invoices from anywhere, so you don’t have to deal with paper or fear running late with your payments.
#3 – Financial Reporting
As your practice grows, it becomes crucial for you to accurately picture how you’re performing financially. Cloud-based accounting solutions can help you keep track of detailed financial records that allow your business’ finances to be evaluated in a real-time manner. Once the data is entered into the software, you can use a dashboard to create graphs and charts to compare your financial performance against previous years.
Some of the tools we use with our medical professional clients include:
*Dext: This incredibly simple app allows users to snap a pic of their receipts, bills, or invoices and digitize them. Then, Dext automatically syncs with QuickBooks Online, saving users time spent entering data manually.
*QuickBooks Online: QuickBooks Online allows you to manage your business finances from anywhere, making it an ideal tool for cloud-based accounting.
*SOS Inventory: Order Management & Manufacturing Software for small to medium-sized businesses. Cloud-based software that syncs with QuickBooks Online.
What about outsourcing to a CPA firm specializing in cloud-bookkeeping to increase efficiency? Here are 5 reasons to consider outsourcing your bookkeeping:
#1 – Save Time & Money
You can effectively organize and manage your business data with cloud-based accounting software to save money and generate greater profits. However, managing your books can be time-consuming, especially when keeping track of inventory, purchase orders, invoices, and bills. When you outsource your bookkeeping to a professional firm, you gain the advantage of an expert who’s already familiar with your industry. Outsourcing also allows you to focus on running your business.
#2 – More Accuracy
Accounting firms specialize in keeping accurate financial records, which can help you stay in line with tax regulations. With a professional accounting firm, you won’t be held accountable for missing or inaccurate finances. A CPA firm can perform various tasks such as tracking inventory, preparing amortization and depreciation schedules, and creating charts and reports to assist your business goals.
#3 – Business Management
A CPA firm can provide guidance on when to make purchases, which will help you save money. Plus, outsourcing adds an extra level of security to your business, so you won’t have to worry about mismanaging individual accounts.
#4 – Avoid Financial Trouble
An outsourced bookkeeping firm can identify any possible issues before they become problems. The accounting experts at a CPA firm will keep a close eye on your business finances so you’re aware of any changes made to your system.
#5 – More Peace of Mind
As a business owner, you have many other things to worry about besides keeping track of your financial performance. A CPA firm can coordinate with cloud-based accounting software to help you manage both your business’s current and past performance.
Some of the tools we use with our medical professional clients include:
*Dext: This incredibly simple app allows users to snap a pic of their receipts, bills, or invoices and digitize them. Then, Dext automatically syncs with QuickBooks Online, saving users time spent entering data manually.
*QuickBooks Online: QuickBooks Online allows you to manage your business finances from anywhere, making it an ideal tool for cloud-based accounting.
*SOS Inventory: Order Management & Manufacturing Software for small to medium-sized businesses. Cloud-based software that syncs with QuickBooks Online.
