New cloud accounting facilities mean that it has never been easier for businesses to complete their bookkeeping.
Working on the cloud provides the opportunity to reduce the amount of time spent on tedious, time-consuming tasks, allowing business owners to concentrate on growing their organisations.
What is cloud accounting?
Cloud accounting is a system accessed through the internet using software that is similar to traditional software, except that it is hosted on remote servers. Data is sent into “the cloud,” where it is processed and returned to the user. All application functions are performed online, rather than on the user’s desktop. With cloud computing, software applications are accessed remotely through the internet or other network via a cloud application service provider.
Is my financial data secure with cloud accounting?
Cloud accounting provides an equally secure (and sometimes even more secure) method of storing financial information to that offered by traditional accounting software. For instance, a company computer or laptop containing critical financial information could be lost or stolen, leading to a potential information breach. Cloud accounting, however, leaves no trace of financial data on company computers, and access to that data in the cloud is encrypted and password protected.
Sharing data is also less worrisome. With cloud accounting, access rights are given to whoever needs to the use the system with unique passwords for each person. Traditional methods often require flash drives to transport data, which could be lost or stolen.
Lastly, cloud providers usually have backup servers in two or more locations. Should one server network go down, you still have access to your data. Information kept only at a user’s premises could be destroyed or damaged in a fire or natural disaster, and may never be recovered.
What are the benefits of cloud accounting?
Data on the move: Data can be entered and accessed from any location at any time. The user is not required to go to their office to enter transactions or to retrieve reports.
Real time information: The data entered into the cloud accounting software is updated immediately and can be accessed by multiple users from multiple locations.
Cashflow: As the software is paid for on a monthly basis and there is no large upfront outlay, this eases the company’s cash flow.
Savings in software maintenance and upgrade costs: The cost for software upgrades and maintenance will be taken care of by the software providers.
Access using multiple devices: The data can be accessed through laptops, smart phones and tablets.
Data back up: The data is backed up and saved in a remote location by the service provider. The security of data and disaster management facilities are provided by the service providers.