Cloud accounting uses internet-based software to manage your business finances. Data is stored securely online and accessible from any device with internet access.
Cloud accounting (also called online accounting or SaaS accounting) replaced traditional desktop accounting software with internet-based platforms. Leading cloud accounting solutions include Xero, QuickBooks Online and FreshBooks. The advantages of cloud accounting are numerous: access from anywhere on any device, automatic software updates, real-time bank feeds, multi-user collaboration, automatic backups, integration with hundreds of third-party apps and no need to install or maintain software on your computer. Cloud accounting also enables real-time collaboration between business owners, bookkeepers and accountants - everyone can access the same up-to-date data simultaneously. Security in cloud accounting is typically stronger than desktop alternatives, with enterprise-grade encryption, multi-factor authentication and independent security audits. SortBooks is built as a cloud-native integration for Xero, leveraging the cloud platform to provide real-time AI-powered bookkeeping that works seamlessly within your existing cloud accounting setup.
SortBooks helps with the bookkeeping behind cloud accounting by connecting to your Xero account and using AI to suggest the right account for transactions sitting in catch-all accounts, learning from your own past coding. Instead of fixing cloud accounting by hand, you review each suggestion, approve it, and SortBooks updates Xero, GST code included. Then ask the AI CFO about your numbers, using live Xero data.
Xero is a cloud-based accounting platform designed for small businesses. It provides invoicing, bank reconciliation, payroll, reporting and integrations with over 1,000 third-party apps.
Bookkeeping automation uses technology to perform repetitive bookkeeping tasks without manual intervention, including transaction categorisation, reconciliation and report generation.
A bank feed is an automatic, real-time connection between your bank account and your accounting software that imports transactions directly, eliminating manual data entry.
Connect Xero, check the AI's suggestions and approve the changes. SortBooks updates Xero for you.