The digital economy knows no borders. Today, it allows entrepreneurs to set up and manage businesses across countries and continents.
Whether you’re selling products online through an e-commerce platform and managing a U.S. LLC while living in India, or serving as a freelancer with clients from North America and Europe while based in Southeast Asia, structured financial record-keeping is essential.
This is where cloud bookkeeping for international business owners falls into place as an unmissable opportunity.
Cloud bookkeeping has changed the way global entrepreneurs manage their finances by enabling access in real time, facilitating management in multiple currencies, and simplifying collaboration.
What is Cloud Bookkeeping and How Does It Differ from Traditional Accounting Systems?
Cloud bookkeeping refers to recording and managing your financial transactions using internet-based software, which is then securely stored in the cloud.
Unlike traditional accounting systems, which are limited to specific computers and locations, cloud bookkeeping offers remote access to financial data from the internet, anytime and anywhere, using any connected device.
Some of the popularly used platforms providing cloud-based bookkeeping services are:
These tools usually provide invoicing capabilities, bank reconciliation, tracking of expenses, payroll integration, and real-time reporting.
Benefit #1: Anytime, Anywhere Access to Your Financial Records
For international business owners, frequent traveling or moving between time zones is a common occurrence. With cloud bookkeeping, you can stay in touch with your finances wherever you are. Whether you are reviewing transactions on your phone at the beach or working on a laptop at a co-working space, you can:
- Have real-time monitoring of expenses, revenues, and cash flow.
- View and send invoices from any location.
- Access dashboards and get on-the-go financial report updates.
This type of adaptability allows faster and more accurate business decisions.
Benefit #2: Effortlessly Handle Multi-Currency Transactions For Vendors and Clients Across The Globe
Global businesses that work with suppliers or clients from different countries understand the chaos of manual multi-currency management. Cloud bookkeeping tools make this process much easier by:
- Converting currencies through the current exchange rates automatically.
- Recording transactions in both the local currency and the company’s base currency.
- Allowing you to invoice clients in the currency of their choice.
- Offering reports on taxable currency gains and losses for faster tax planning.
This feature streamlines precise financial reporting, enabling you to work freely without worrying about calculations and mistakes.
Benefit #3: Collaborate Seamlessly with Your Accountant or Team No Matter Where They Are
Remote teams can be very easy to work with thanks to the ease of cloud bookkeeping. They help you:
- Securely grant role-specific access to your bookkeeper, financial advisor, or accountant.
- Add notes or comments to relevant entries and communicate within the software.
- Share reports and documents instantly ahead of deadlines for quick reviews and easy tax preparation.
These collaborative features allow each user to be as mobile as they need to be and still get their work done, even from the other side of the globe.
Benefit #4: Stay Compliant with Tax Rules and Financial Regulations Across Borders
If you live outside the US and are trying to manage an LLC, most cross-border tax compliance will be challenging. There is a cloud bookkeeping solution designed to help with international compliance by:
- Automatically calculating applicable taxesVAT, GST, and sales tax, depending on your whereabouts.
- Providing ready-to-use financial statements.
- Integrating supporting tools that file and report under US and international laws.
It gets much easier to stay compliant when the company’s financial records are well-organized and stored in the cloud.
Benefit #5: Reduce Costs and Scale Efficiently with Affordable, Cloud-Based Financial Tools.
As compared to hiring accountants or investing in costly infrastructure, cloud bookkeeping platforms are subscription-based, which makes them a lot cheaper. Some of the benefits are:
- No need for server maintenance or IT support.
- Affordable monthly or annual pricing plans.
- The ability to upgrade as your business grows.
This makes cloud bookkeeping ideal for startups, small businesses, and solopreneurs who want professional tools without breaking the bank.
Benefit #6: Keep Your Financial Data Secure with Built-In Bank-Level Encryption
Unlike common belief, cloud bookkeeping is often more secure than other methods. These platforms provide:
- Data is encrypted using bank-grade encryption.
- Account access has two-step verification.
- Automatic backups protect data from being lost.
- Secure industry-certified data centers, like ISO 27001.
Now you don’t have to worry about whether your financial documents are stored safely or not.
How to Choose the Best Cloud Bookkeeping Platform for Your International Business Needs
Not all cloud bookkeeping software is made the same. When picking the right one for you, keep in mind:
- Jurisdiction Support: Check if it goes along with the accounting and tax regulations of the country you are operating in and based in.
- Multi-Currency Features: It is imperative for invoicing and reporting internationally.
- Integrations: Check for integration with Stripe, PayPal, Shopify, or your CRM for seamless third-party integration.
- Service Level: Check to see that support is available 24/7 in case you’re in another time zone.
Going through customer feedback and trying out some features via trial accounts can enable you to come to an informed decision.
Additional tip: Think about hiring a Cloud Bookkeeping Specialist or Firm
As an international entrepreneur, you have a lot of options on your table, which makes your time extremely valuable. Forget spending hours on bookkeeping when you can streamline the entire process with cloud-based services. By doing this, you can:
- Keep your books clean and compliant,
- Get daily insights and reports,
- Get timely tax filings and reconciliations.
EasyBooks by EasyFiling is a highly rated cloud bookkeeping service tailored to U.S. LLCs and overseas founders. If you require a set of financials for tax purposes or ongoing compliance help, EasyBooks is there to help you.
Conclusion
For international small business owners, EasyBooks is your go-to, as these real-time updates enable you to stay a step ahead of your competition.
With automation, easy account access, and unparalleled accuracy, EasyBooks is your trusted cloud bookkeeping service. If you want to scale your business internationally and do not want the hassle of dealing with traditional accounting, move your books to the cloud with EasyBooks.
Are you ready to scale your business with confidence and streamline your finances?
With global entrepreneurs in mind, EasyBooks’ bookkeeping will help you simplify your finances. Get your account today.
Frequently Asked Questions (FAQs)
1. Am I able to utilize cloud bookkeeping software if my business is registered in the US, but I live in a different country?
Absolutely. This is the exact use case where manual bookkeeping falls short. Most services are meant to be accessed globally, and you can run your US business from anywhere in the world. You will have access to US tax settings, multiple currency options, and 24/7 secure access to your information.
2. How secure is cloud bookkeeping for keeping sensitive financial information? Is it safe?
Of course. Renowned cloud bookkeeping services employ bank-grade security protocols, including encryption, two-step verification, and automatic backups. Usually, these cloud solutions offer more security than traditional computing or even paper ledger accounting.
3. If I am using cloud bookkeeping software, will I still need an accountant?
While cloud software does make accounting easier, having a qualified accountant or a certified bookkeeper is still advisable, particularly for business owners out of the country who need to manage tax compliance, reporting, and different currencies. Not only do modern cloud technologies make working with accountants seamless, but they also enable real-time collaboration.
4. Will cloud bookkeeping software enable me, a non-resident owner, to stay compliant with U.S. taxes?
Yes, numerous cloud tools are designed using the U.S. tax framework, and some of them provide services like automated sales tax and income grouping, as well as tax-prepping financial statements, which aid in filing taxes with the United States. If you have a bookkeeping partner such as EasyBooks, you will be fully compliant with all requirements related to your U.S. LLC.
Swostika Silwal
