With the rise of cloud products and services, there has been a shift in how businesses handle their processes, especially accounting. Modern cloud-based accounting software can easily be installed and used by SMEs and their accounting firm servicing them.
What is Cloud Based Accounting Software
Cloud accounting is like traditional accounting but all your business books are stored in the cloud. This includes records of income and expenses, and assets and liabilities. The records are further encrypted so that only people with login details are able to view, edit and access them. This software has been used and adopted by many companies since the early 2000’s but with the rise in quality of the software available, it is much more powerful than before. Now days most systems are able to quote, invoice, manage bills and so more.
Benefits:
Cloud-based accounting software has numerous advantages for businesses including:
- Sales and purchases data go straight from your bank into your books meaning you won’t spend hours transcribing them.
- Since all your information is stored online you have the flexibility to access and edit this data from anywhere.
- With multiple users and get real-time visibility you are able to collaborate with your team.
- The security of having all your files backed up in the cloud is far greater than any hardware alternatives. The cloud is one of the most secure solutions and is heavily encrypted and stored for your access
- There is no software to install or update and your data is automatically backed up. Because of this, even older devices are often able to access it.
- You can customise your dashboard to show essential financial information like your monthly sales, any overdue money, upcoming bills, and your cash flow.
Problems with traditional accounting software
Even though they both have the same core function, there are some major differences between cloud accounting and traditional accounting:
- In the traditional accounting software, the system is difficult to keep up to date.
- It is limited to one computer and data often gets moved around, for example, on a USB drive. This is not only unreliable but also brings up major security breaches.
- It’s becomes timely and difficult to keep backups and thus they aren’t often done.
- It becomes a major hassle to keep your books and records up to date and often doesn’t get done.
Recommended Software:
We are familiar with the various cloud-based accounting packages that are currently available for small business including MYOB, Sage and Quickbooks. However, we still view Xero as the market leader in cloud-based accounting packages for SMEs. We have installed and maintained Xero in numerous companies. After doing our analysis of various cloud-based accounting programs we found its intuitive nature means it is best suited for small businesses. Compared to other competing solutions it is easier to install, use and automate businesses. It is able to not only provide you with all the powerful tools of more complex solution but does so in a very user-friendly menu and dashboard. It is an ideal tool for small businesses who want to streamline their day-to-day accounting efficiencies. However, we still work with businesses that have committed to alternative cloud-based solutions.
Conclusion
The beauty of cloud-based accounting software is in the freedom it provides you with. It allows you to run your business whether that is from work, home or overseas. No matter where you are, you can be confident your data is up-to-date, secure and provide you with real-time analysis of your business and its future.
Feel free to contact us if you would like personalised consulting for cloud-based accounting software. We can help advise you on the best solution tailored to both your budget and situation.