What is Cloud Accounting software?
With the modern age have come modern software solutions. The days of loose bits of papers and receipts flying around are over, as more and more firms have switched to online bookkeeping and tax filing services.
But what is cloud accounting? If you’ve used Google Drive, Facebook or a mobile email service, chances are, you are familiar with cloud-based solutions. The Cloud means that the data you use or create is not bound to your computer’s hard drive. Cloud Accounting, simply put, is accounting done on the internet.
What are the benefits of Cloud Accounting?
- No USB drives needed The most obvious benefit of cloud accounting is that whatever device you are on, wherever you are (as long as you have an internet connection!) you will be able to access your accounting figures.
Without cloud-based software, you will find yourself shackled to your desktop computer, and at the mercy of data-transfers to your local drives. On a cloud-based system, all you need to do is log in. Whatsmore, your data is all safely encrypted and stored, so you aren’t more vulnerable having it online.
Cloud-based accounting allows you to access your business status with ease and efficiency. Not only that, but cloud-based processes make the communication between you and your colleagues a lot more efficient and quick. You can share information instantly, and collaborate on documents from separate devices.
No more emailing back and forth, or misplacing an all-important USB drive.
- Saves money and time Online accounting will actually save you money you would have spent having to pay for IT software and hardware. You won’t have to spend hours maintaining your hardware, nor will you need a server to store your software.
If you store everything online instead, you won’t need to pay for all this pricey infrastructure. You will be able to access the software anywhere, allowing you to work remotely, approve and check payments instantly, and send out invoices. You can even store and easily access your receipts and expenditure, meaning your records are simple and easy to view
- Easy back-ups and great security measures Cloud-based accounting software is heavily encrypted, meaning your financial information is safe from hackers. Desktop-based systems are vulnerable because they are present in physical servers, meaning they can be physically stolen. With Cloud-based software, the only people who can access your information are those who have the login details.
It also automatically saves and backs up everything as you go. Desktop accounting is problematic in that you need to constantly update it and back it up. Cloud software is always updating and improving itself, without you needing to do anything.
- Environmental sustainability Cloud-based accounting can move your business closer to carbon neutrality. With environmental concerns becoming less ignorable by the day, reducing the impact each business has on the environment should be an absolute priority.
Cloud-based accounting software, as discussed, uses far less infrastructure than desktop-based accounting. This makes it more ecologically sustainable. Moreover, if everything is conducted online, there is no need to print, meaning paper is saved.
Since everything is stored online only, there is no need to store paperwork anywhere, which means your filing and storage costs are reduced.
What kind of software do we use?
We would most highly recommend XERO’s Cloud Accounting software. It is highly efficient software, giving you a greater degree of control over your most important financial processes. You will streamline your invoices with your expenses, allowing smoother communications between you, your team and your customers.
Manage any costs and cash flows, easily track what you are owed and be well-prepared for any potential surprises.
Get in touch with us for a free, no-obligation phone consultation. We will be happy to answer any and all questions you may have about accounting, and assist you with anything from filing your personal tax returns to helping you get going with your new start-up.