What is cloud accounting?
Cloud accounting, also referred to as "online accounting", serves the same function as accounting software that you would install on your computer, except you purchase the right to use the software which runs on provider servers and is accessed using your web browser, over the Internet. Your data is securely stored and processed "in the cloud". This means you are able to access your business financials from anywhere and using any device, as long as you are connected to the internet.
Benefits of cloud based accounting software
There are many benefits to using cloud accounting:
- Favourable economics – Cloud accounting provides a 'pay as you go' approach to your software use and the need to purchase software licences and hardware upfront is eliminated. The need for traditional IT support and maintenance is also significantly reduced with automatic and ongoing updates or releases.
- Access to real-time data anywhere, anytime – Access real-time information anytime from any place, therefore making it possible to obtain more timely and accurate information.
- Scalability and flexibility to support growth – Cloud based solutions not only cater for the growth of your business but also for transaction volume growth and functionality flexibility. You can also benefit by paying for only the functionality you need through the more innovative vendors.
- Security – One of the reasons that might prevent you from adopting a Cloud based product is a fear around security. In reality, clients using Cloud accounting software typically benefit more from the fast deployment of software patches and security upgrades. Leading vendors are well equipped to stay on top of security concerns.
There is no legislation to stop businesses from using the Cloud, but seek advice on 'how to' setup and ensure implementation complies with your industry obligations and the risk profile of your business.
Deciding on software
Deciding on the software that best suits your needs, gives you the more favourable economics and best value involves careful consideration. Contact our office to discuss the market solutions (such as Xero, Reckon One and MYOB Live) and the options available to you.