What Is Cloud Accounting And Its Benefits?
WHAT IS CLOUD ACCOUNTING?
Cloud accounting is the use of a bookkeeping/accounting tool which is hosted in the cloud (online) instead of on your desktop or hard copy paper files.
Think about internet banking – each time you access it you are using the cloud.
Cloud accounting is exactly what it sounds like. Instead of having all your accounting information on paper in your office or stored digitally on your computer hard drive, cloud accounting means storing your accounting information “in the cloud,” or in other words, on a server that will still be around if your office gets flooded or your computer dies.
The benefits of cloud accounting means that you can access your financial records from anywhere, anytime, from any device! Online accounting means small business owners stay connected to their data and their accountants! We use and recommend
Cloud software means you don’t have to install or maintain programs on your computer systems; you access them through an Internet connection. That means any authorised user can access their programs and data from any location and on any device – laptop, desktop computer, or smartphone.
Regarding accounting, it’s much more convenient to access and check information, update records, carry out transactions like sending invoices or share information with others wherever you happen to be working.
That’s a big bonus in the post-pandemic period when you and your management team might be working remotely or if you need to hold virtual meetings with bankers, investors, or other stakeholders.
As well as the program itself, your data is also held securely in the cloud, protected by the highest levels of security. If you ever suffered a disaster at the office, like a fire or flood, there’s a serious risk that your data could be lost or inaccessible – no problem when it’s held in the cloud. You only need an Internet connection to keep your accounting systems running.
In this world of digitalization, cloud accounting system becomes the most pleasurable thing occurred in the accounting industry.
What is Cloud Accounting? It is a new way of accessing your accounting software from the web browser without actually installing it.
What are the benefits of Online Cloud Accounting Software?
The interface and steps are all designed for business owners and non accountants.
It generates accounting entries and records automatically.
You can manage your business accounts with the software anytime and anywhere via mobile app.
It helps to move your document online and make your documents searchable and accessible anywhere on the planet.
Invoice can be issued in less than 1 minute. Soft copy of invoice get sent to your customer in 0.05 second.
Dedicated hotline accessible.
Cost of ownership is lower as compared to traditional accounting softwares.
Accounting is always an integral and essential part of any businesses. An accurate financial information helps the business owners in making business decisions. Online cloud accounting software will serve this purpose!
The other benefit of cloud-based systems like Xero is that the software company is responsible for backing-up data and maintaining, managing, securing, and updating the software. You don’t need a technician on-site to cover that.
I recommend that you get ON the clouds! Here’s why:
Consider how frequently you use the cloud in your daily life. For Example: Paying bills online or using a smartphone to check email while on the go.
So why not in your professional life as well?
Here are FIVE reasons to consider moving to cloud accounting:
You may view your accounts and financial information from anywhere, at any time.
Online accounting is done fully on the cloud. There is no expensive IT infrastructure to maintain, and you may utilize the program whether you are at the office, at home, or at a client meeting.
All of your accounts and records are saved and backed up using military-grade encryption.
You, your coworkers, and your management team may all view the same numbers – instantaneously and from any place.
You may drastically minimize your dependency on paper. Invoices may be emailed directly to clients, saving money on printing and postage while also expediting the payment process. Incoming bills and receipts may be scanned and recorded in your accounting software alongside the corresponding transactions.
Realise the benefits of Cloud Accounting
1. Access anywhere, any time
2. Centralised Data
3. Real time reporting
4. Easy, secure sharing
5. Managed Backups
There are some clear benefits to moving your accounting records to the cloud besides protecting your files from damage and/or loss.
What does cloud accounting mean for your business?
Easy, safe and secure software
Easy invoicing and understanding your real-time cash position
Run your business anywhere, anytime
Seamlessly collaborate with your team and your accountant on real-time data
Interactive reports and budgets available at your fingertips
Mobile apps and add-ons
Customisable dashboards for a quick overview of your business.
What is cloud-based software?
“Cloud-based software (also known as cloud computing) refers to applications, on-demand services, storage, computer networks, or other accessed resources using an internet connection through another provider’s shared cloud computing framework.”
Benefits of cloud-based software:
•Scaling infrastructure: Cloud-based data infrastructure is inexpensive, efficient, and responsive to demand.
•Cloud-based office systems: If your business still emails document files back and forth, then transitioning to a platform such as G-suite can significantly improve its efficiency.
•Big data analytics: Cloud computing offers SMEs the processing power necessary to organize and use large quantities of data. Most SME owners overestimate the technical challenges associated with big data analytics, but the effort put forth is all worth it.
•Remote workspaces: Telecommuters help SMEs circumvent many costs associated with brick-and-mortar workspaces. Cloud technology breaks down social barriers for individuals with small children or a disability to provide a foundation for a more inclusive workforce.
•Backups and recovery: Hybrid systems backing up local data to the cloud in real-time offer protection against security breaches and allow companies to reduce their reliance on physical infrastructure and mental backups.
‘What is XERO and how can I use it?’
When starting a small business, you want to make sure that your finances are under control. This is important to the financial survival of your company.
So how will you handle keeping your small business on top of your finances?
XERO is cloud-based accounting software designed specifically for small businesses to perform bookkeeping and accounting duties such as invoicing customers and payroll.
One of the huge benefits of XERO software is it provides a unique dashboard display, giving you a clear financial overview of your business at all times.
SEE ALSO : Cloud Computing & Cloud Migration And Their Benefits
At Ambition Accountancy, we know all about XERO, get in touch with us today to find out how it may help you and your small business.