Cloud accounting, also known as web-based accounting software, is a platform to run all your bookkeeping and accounting online. It’s in the cloud, so as long as you’ve got internet access, you can access it anywhere in the world.
Today, we’ll break it down into three sections: what it is, who needs it, and why.
What is Cloud Accounting?
Cloud accounting can simply be described as online accounting. As long as you’re online, you access the software and your data files over the internet.
Your data is securely stored in the cloud rather than on your local hard drive or server. You’ll have access to your financial data from anywhere, at any time, using any device, including your mobile phone or tablet.
Internet banking platforms, such as Genome business banking, are a form of cloud computing. The cloud removes the need to install software on your computer. It eliminates the need to download updates because the provider automatically keeps the software up to date.Â
Now, you no longer need to save your data and do backups because this automatically happens. If your computer was lost, stolen, or damaged by a disaster like a flood, you can still access your data online using another computer or mobile device.
There is no need to maintain expensive computer hardware. As long as you have your password and an internet connection, you can access and update your data from any computer, mobile phone, or tablet from anywhere in the world.
You only have one data file, a ledger, which is the most current version at all times. You can also give your accountant access to your data for real-time bookkeeping assistance without having to send or email data files to them.
Do You Need Cloud Accounting Software?
Every single business owner needs a cloud accounting software package. It doesn’t matter if you’re a one-man band or have a hundred staff—you still need it. The most commonly asked question is: “Can I just manage in Excel or save all my receipts and bring them back at the end of the year?”
Definitely not. You will need cloud accounting software.
Benefits of Cloud Accounting To Your Business
Some of the issues of traditional accounting software include:
- There’s a time lag
- The data isn’t up to date
- The software only works on one computer
- Data transfer requires email or a USB drive
Traditional accounting isn’t secure and isn’t reliable. It’s a hassle to back up the data, and it can be expensive. The software always needs upgrading. It can be difficult, time-consuming, and expensive, and it can lead to issues of compatibility with your advisers.
Only one person has access. Stakeholders can’t access financial and customer details. So why is the cloud and accounting software a perfect match? Here are the main benefits of using it:
No server needed
You won’t have an ugly server computer in your office or a big filing cabinet taking up space. Everything is in the cloud, and there’s no need for backups. You pay a monthly subscription for the software, and upgrades are done automatically in the background.
Collaboration
You can work with your accountant there, so you can have multiple users access it simultaneously. This didn’t used to be the case. You had ugly desktop software, so you could take a backup, email it, or put it on a USB stick and give it to your accountant. As mentioned earlier, it’s not secure and efficient at all.
They couldn’t do any more work because the accountant had the final live backup. You had to wait for them to finish before you could carry on. There’s no more of that—everybody can work in collaboration all at the same time.
Professional invoices
You can produce very professional quotes and sales invoices, so you will look professional to your customers and clients. This makes you look much more professional than others who still use paper methods. You’ll also get paid a lot quicker because the clients already have the invoice when the job’s done.
Real-time reports and integration
Cloud accounting software can produce professional-looking reports, from accounts receivables and cash flow to profit and loss statements. All of these are at your fingertips in real-time.
It integrates business bank feeds to keep the general ledger up-to-date regularly. You can see exactly who owes you money, so you can get chasing and increase your cash flow. It’s important that your bank account should link with your software, meaning all your transactions will pull through automatically every day.
Wrapping It Up
Because these systems continue to progress and advance in the technology that they offer, there are many other benefits available to business owners. You always should be on the lookout for these. Not just for your accounting but for your other business needs as well.
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