What is Cloud Accounting and What are its benefits?

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What is Cloud Accounting and What are its Benefits?

Cloud Accounting

The infamous “Cloud” is a digital platform where data and software are stored to be accessible online at any time, anywhere, from any device. Internet Banking apps are a prime example of Cloud Accounting, as it uses data previously inputted into your mobile device to make purchases and online banking easier. The cloud replaces the need for external hard drives to be needed to store data on.

Cloud software can be easily accessible on your Apple Device and even easier to download on your personal mobile phone, tablet or internet browser. In the cloud, there’s no need to install and run applications over a desktop computer. Instead, you pay for the software by monthly subscription.

Currently, other traditional Accounting software’s have proven to be ineffective in properly maintaining and storing data. Many problems have risen from using traditional accounting software’s, business owners have expressed their frustration with these software’s only being available on one device with only one-person user access. Cloud Accounting alleviates the issues of accessibility as you can have multiple access users who can gain access into the cloud whenever information is needed.

Other Accounting Software’s are costly and complicated to back up and store data. With Cloud Accounting you can use cloud-based storage software from any device with an internet connection.

Online accounting means small business owners stay connected to their data and their accountants. The software can integrate with a whole ecosystem of add-ons. It’s scalable, cost-effective and easy to use.

Below are Five ways Cloud Accounting Benefits your business

1. You have a clear overview of your current financial position, in real-time.
2. Multi-user access makes it easy to collaborate online with your team and advisors.
3. Automatic updates mean you can spend more time doing what you love.
4. Everything is run online, so there’s nothing to install and everything is backed up automatically. Updates are free and instantly available.
5. Upfront business costs are reduced – version upgrades, maintenance, system administration costs and server failures are no longer issues. Instead, they are managed by the cloud service provider.

You might be concerned regarding the safety of your data being stored in a ‘Cloud’. But don’t stress the Cloud is one of the most secure ways to store information. For example, if someone steals your hard drive with all your data on it, that data will be lost forever. However, with the Cloud, this is where the data lives, online, and not on an external hard drive. Also, by creating an account on the Cloud it requires you to create unique usernames and passwords that can only be accessed by the account creator granting access to other users. This guarantees the protection of your data and account from hackers.

The beauty of this software is the flexibility it gives you to run your business from work, home, or on the go. You can be confident that you have an up-to-date picture of how your business is doing, no matter where you are.
Software updates can be developed and delivered faster and more easily in the cloud. This means you don’t need to worry about installing the latest version and you’ll get access to new features instantly. With Cloud Accounting software, you have the option to run your business remotely, from anywhere in the world. And when data is fluid and accessible, the possibilities are endless.

Nilesh Vasoya

Nilesh Vasoya

Nilesh Vasoya is a CPA and experienced business advisor with 15+ years’ experience in accounting and tax, and certifications from NTAA, ICAI (India). He is also a Registered Tax and ASIC Agent. Nilesh specialises in financial reports, cash flow, taxation advice, internal audit, account reconciliation, and advice for small businesses on maximising XERO, MYOB, and QUICKBOOKS. He is experienced in developing strategies for growth within small-medium scale companies.

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