What is cloud accounting and why you need it are two important questions worthy of your consideration today. This is especially true for small businesses. Although you don’t have a lot of money in your budget, your accounting needs are no different from those of a big business.
Cloud Accounting Defined
To begin with, you should understand that cloud accounting software uses accounting software that’s hosted on remote servers. From there it provides your business with accounting capabilities that are similar to the SaaS (Software as a Service) business model. This means it’s based on a subscription and is centrally located. While this is also true with cloud accounting software, but you send your data into “the cloud” where it’s processed before it’s returned to you.
The Benefits of Cloud Accounting
Now that you have a better understanding of what cloud accounting is, you’ll also want to have a better understanding of its benefits to your small business. These include:
- Cloud accounting software is safe, which is probably your major concern. Now, instead of worrying about what goes on in your accountant’s office, you must only make sure your own office is secure. This is easy with cloud accounting because nobody stores sensitive information on their premises where accidental abuse, criminal activity, fire or flood
- You’ll save money by moving to “the cloud.” Instead of buying special software, you’re paying to use a software that others are also using. However, thanks to its military-grade security, you don’t have to worry about security, viruses, spam or phishing.
- It’s easier to share your documents with your accountant because you don’t have the time and cost of printing or the risk of emailing them. Instead, you simply upload your files to the cloud and your accountant is automatically alerted the documents are ready. As such, everyone saves time.
- Everyone who’s involved in your business’ accounting can work according to their own schedule and from any place too. This is because “the cloud” is always open. So, if you like an accountant who doesn’t work the “typical” business hours, you can still have them work on your accounting for you.
- Gone are the days when you had to carry your laptop or papers around with you. Now you and your accountant can use this software from any web-enabled device (e.g. tablet, smart phone). Simply open an internet browser, log in, and you’re there, ready to do your work.
- If you’re tired of dealing with IT headaches, then cloud accounting is for you! With cloud accounting there are no more interruptions from hardware crashes, maintenance, or upgrades. Nevertheless, you still receive software updates as soon as they’re available.
- Your employees also have more freedom. Gone are the days when you can use accounting related tasks as an excuse to say “no” to an employee who wants to work from home. They’ve got the cloud and can work from anywhere.
- Since cloud accounting software is subscription based, you only pay for what you use. As such everyone (from the smallest business to the biggest) find it’s affordable for them to use. You don’t ever pay for updates either.
- Thanks to cloud accounting you now have real-time reporting and visibility throughout your business. This is because you’re working in “the cloud,” so you have greater mobile capabilities, which allow for more collaboration.
Moving your accounting to the cloud is both easy and beneficial. When you’re ready to do so, please let us know. You can contact us for help or to answer any questions you may still have. In either case, we’re here to help!