CLOUD ACCOUNTING
What is Cloud Accounting?
Most of you will now have at least heard the term "Cloud Accounting" or more generically "The Cloud".
It's the type of buzzword that has crept into our vernacular but is still a bit of a mystery for some people. Here we break down some of the mystery for you.
In its most basic form, cloud computing simply refers to software and storage being hosted off-site as opposed to on-site. Prior to modern internet speeds, most businesses ran most of their software on individual computers or on an in-house physical server.
Faster internet speeds allow us to store data and/or software on external servers without enormous loss of speed. This reduces risk by not having information stored in one physical location, as cloud storage providers always have multiple servers.
Any struggle with acceptance of the cloud is usually related to the user’s comfort level around security and storage of off-site information.
We are not here to convince you one way or the other but rather give you some of the insights as to why the world is now using this technology and how that affects you in regards to accounting.
The Benefits of Cloud Accounting for Business
There are several benefits for a business to adopt to Cloud Accounting, including:
- Automated backups -Being online means that you've usually got your backups covered automatically, meaning less likelihood of lost data.
- Multiple access - Have different people work on files simultaneously by providing access to your bookkeeper, accountant and other parties at the click of a button.
- Share reports and financials easily - Chief decisions makers can get an overall picture of business health at a glance which makes decision making faster.
- Automated software updates - Cloud Accounting companies take care of the software updates for you, so you know you've always got the latest version for compliance and convenience.
The Benefits of Cloud Accounting For Your Accountant
The benefits for Accountants is that we have faster access to information which allows us to spot potential problems in advance, and provide accurate and timely reports for financial and other purposes.
Is there any cloud accounting software better than others?
Cloud Accounting systems differ marginally in their terminology or processes. Some accountants may have a preference over one provider or another however they be able to work within your preferences and familiarities.
How do I get started?
Have a conversation with your accountant. Find out what system they recommend and why, then read some comparison reviews and make a shortlist of the features that you are looking for to suit your business.
Cloud Accounting can enhance efficiency and collaboration across several areas of your business and is worth your consideration.
CLOUD ACCOUNTING
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