Benefits of Cloud Accounting
It seems like everything happens in the cloud these days. Social media, file storage in Dropbox or Google Drive, collaboration tools like Slack or Trello… they all live in the cloud.
But don’t be fooled into thinking the power of the cloud is limited to crazy cat videos and real-time chat.
Currently, over 42% of Australian businesses are using cloud computing. That number continues to grow every year as software companies develop products at a rapid pace to fill the increasing demand for cloud-based solutions.
So it’s not surprising that accounting software providers like Xero, Quickbooks, or MYOB have all thrown their weight behind developing their online services.
Cloud accounting software has evolved to offer all the functionality of your trusted old desktop system, with a number of additional benefits that only online technology can provide.
If you’re wondering whether moving to the cloud will be beneficial for your business, keep reading.
Why Use Cloud Accounting?
There are many benefits of cloud accounting that you may not be aware of.
Ease of Access
In today’s 24-hour workday world, accessibility is key. Cloud-based accounting allows you to access your accounts and key financial information anywhere, at any time. All you need is an internet connection.
That means no more being tied to your desktop computer at the office. Just use your phone, tablet, or laptop to work wherever is convenient to you. Not only does this set you free to work remotely, but it makes it easy to collaborate with colleagues, partners, and employees from anywhere in the world.
Desktop-based systems require an investment in hardware. You need a server to house your application data, and that server needs regular maintenance. Plus you must factor in the running costs of a server – which is most notable on your electricity bill!
But what if anything goes wrong with your server? You’ll require an IT expert to come out and have a look. They might need to order parts, they might take hours to repair your problem… all of which adds to your invoice!
Cloud accounting is carried out entirely online. There is no costly infrastructure for you to maintain – that’s the provider’s problem, not yours.
All that’s required of you is some setup fees as you get established, and then the rest is all taken care of in a monthly subscription fee. No nasty surprises, no huge electricity bill, and no costly service call-out fees.
One of the top things on your mind must be the security of your business’ data. With all of that information flying through your wifi connection, it’s normal to ask yourself… is cloud accounting safe?
Accounting software providers understand the critical security of your organisation’s – and your clients’ – data. They spend millions of dollars a year making sure that the highest levels of encryption are used, and also ensure that their servers are protected from fire, theft, or damage by using state-of-the-art security.
Compare that to having your company data file on someone’s laptop which can be easily lost or stolen, and you’ve got a clear winner.
Seamless backups and updates
Time consuming daily backups are a drain on your staff’s time and patience! On the cloud platform, manual backups are a thing of the past. The software does it for you in real-time.
Not only does this mean that your risk of data-loss is minimised, but it also means that you can rest assured that everyone’s working from the same file version. File updates made by Sarah in her Sydney home office are instantly applied, saved, and accessible to all stakeholders across the world.
Cloud accounting software also updates automatically, and those updates are included in your subscription fee. So once again, there are no sudden bills for your software upgrade, nor the hassle of getting a tech out to install and update your computers.
A 2019 Deloitte survey revealed that 78% of users have reported improvements in productivity since using cloud services. This is largely due to the reduced paperwork and increased automation of cloud accounting software.
Traditional accounting processes involved dealing with messy paperwork, manual data-entry and financial admin that eats into business time. With an online accounting system, you can significantly reduce your reliance on paperwork, as well as automate many repetitive admin tasks. Great for the environment, and great for your business’ productivity.
Time to Make the Switch?
I’m sure you’re beginning to see the benefits of cloud accounting software. If you’re currently using a desktop-based program and are looking to move online, get in touch with us at National Accounts.
I am an unusual Chartered Accountant. That is, I have a passion for helping clients achieve the best outcomes. Strangely (for an accountant) I’m an excellent communicator, highly organised and work hands-on with clients, I love helping generate wealth and streamline their processes. Being a results orientated person I enjoy incorporating new technologies into businesses to increase efficiencies and harness opportunities for my clients in this ever-changing world of finance.