Cloud Accounting? What is it?

Cloud Accounting? What is it?

The term cloud accounting refers to accounting software that is operated entirely in the cloud — a.k.a. on the internet. It allows access to real-time data, which gives you a better overview of your finances, thus assisting you with making decisions. If your desire for your business is to for it to work faster and smarter, we believe cloud accounting can be an awesome tool waiting to be utilised.

How do you use it?

 

Why do you need Cloud Accounting?

 

Instant Access Anytime, Anywhere.

Just think of it like online banking; you are able to access your financials on the go with any mobile devices with internet connectivity. Imagine being able to generate sales invoices, or plan for your company’s budget during your commute. Some cloud accounting softwares like Xero even allows you to access your financials even when you have no internet connection.

 

Increasing connectivity with your Accountant in Real Time

Cloud Accounting allows your accountant or bookkeeper to be working on the file at the same time as you to assist you with any questions about data entry or what the financials are reflecting. It increases connectivity encourages better communication and use of your accountant.

 

 

Secure Data

Ease of access to data in the cloud, doesn’t mean that security is overlooked. In fact, the cloud is one of the most secure ways to store information. For example,  if your laptop is stolen, no one can access your data unless they have a login to the online account. With cloud software, this is where the data lives – as opposed to on your hard drive.

In addition to this, if you invite users to view your data, you can control the level of access. This is much more secure than the old-fashioned way of emailing your files or sending out a USB stick with your data on it.

 

 

Working Smarter

The beauty of this software is the flexibility it gives you to run your business from work, home, or on the go. You can be confident that you have an up-to-date picture of how your business is doing, no matter where you are.

Software updates can be developed and delivered faster and more easily in the cloud. This means you don’t need to worry about installing the latest version and you’ll get access to new features instantly.

With cloud accounting software, you have the option to run your business remotely, from anywhere in the world. And when data is fluid and accessible, the possibilities are endless.

 

Traditional Accounting vs Cloud Accounting Softwares

Traditional Accounting Cloud Accounting
  • The data in the system isn’t up to date and neither is the software.
  • Everything is run online, so there’s nothing to install and everything is backed up automatically. Updates are free and instantly available.
  • It only works on one computer and data bounces from place to place. For example, on a USB drive. This is not secure or reliable.
  • You have a clear overview of your current financial position, in real-time.
  • Only one person has user access. Key people can’t access financial and customer details.
  • Multi-user access makes it easy to collaborate online with your team and advisors.
  • It’s expensive, difficult and time consuming to upgrade the software.
  • Automatic updates mean you can spend more time doing what you love.
  • Customer support is expensive and slow.
  • Upfront business costs are reduced – version upgrades, maintenance, system administration costs and server failures are no longer issues. Instead, they are managed by the cloud service provider.

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