What is Cloud Accounting?
Cloud technology may be a new concept to some, but you may be more familiar with it than you think:
1. What is “cloud computing?”
It’s simply using the internet to access software rather than physically installing it on a computer.
2. The chances are you’re already using cloud computing...
Many people are actually using cloud computing without even realising it. For example anyone with Hotmail or Gmail accounts are already working “in the cloud” as the software and data is stored remotely and is accessible from any computer.
3. What is cloud accounting?
Simply put, it's the best thing to happen to accounting since the invention of computers. Cloud accounting, also known as “online accounting”, works in the same way as cloud computing. Your accounts are held on servers and you use the software whilst connected to the Internet. This means you can access your accounts from any computer in the world with an internet connection.
4. Why should i use cloud accounting?
Cloud-based accounting software offers a number of benefits for businesses including:
The cloud alleviates the need for businesses to store and manage data and maintain expensive computer hardware. You can operate the software from any computer with an internet connection, without being connected to a server or having specific software installed on the computer.
It provides the business owner with the opportunity to become more involved in the accounting process without needing to be a bookkeeper themself. The software is simple and intuitive to use and interactting with the accountant or bookkeeper has never been easier.
For the accountant, the productivity improvements are immense. The days of dredging through a bag full of receipts once a year are replaced by dynamic, real-time updating of accounting data via direct links to bank account statements and super-smart data processing techniques.
The monthly subscription fee usually works out less than the cost of buying the software and then paying for annual subscriptions, whilst the productivity improvements are immeasurably significant.
There is a huge list of additional services and applications that will integrate with the Cloud service to further assist the smooth-running of your business.
The software is automatically kept up-to-date by the provider meaning that you don’t need to download updates such as new tax rates where the payroll module is used. Your data is also backed up daily onto secure servers.
If you think Cloud Accounting is the solution for you, give MN Bookkeeping a call to discuss it further. MN Bookkeeping is a Certified Xero Advisor and can therefore offer a complete set up, training and maintenance service. Go to Xero's site today and take a look at how the accounting revloution can help you or have a look at the video below...
An Introduction to Xero