Ever wondered if you should be making the move to the cloud?
Cloud Accounting is a more efficient way to keep track of your business – instead of the data file being stored on your local computer, it is stored in the cloud.
What is the cloud?
In short, the cloud is the term being used for the Internet. Your data is stored on servers, either locally in Australia or somewhere else in the world, just like a bank. You either log into your software through any search engine sites or your local computer software which will then access your data over the Internet.
Is your data safe?
Software providers promote that your data is stored in multiple locations in multiple countries with the same level security as your Internet banking. While your data might not be stored on your personal computer, you still own the data stored and you can access it at any time.
Advantages of Cloud Accounting
1. You can access your data from anywhere at any time, as long as you have an Internet connection. It removes the need to have costly terminal server logins to enable you to login into your accounting system while not in the office.
2. It saves you a lot of money. Your accountant or business advisor can view your business any time without you needing a backup copy of the file. Meaning, they can advise you in a more timely manner and help you before small problems become big headaches.
3. It saves a lot of time. Most Cloud Accounting software enables bank feeds – this downloads your bank statement information directly into your accounting software. Providing you conduct all or most of your business through your bank account or credit card, the transactions will be automatically inputted into your accounting software.
4. The ability to create rules. Once your bank feeds are activated, you will have the ability to create rules for recurring transactions. If you have used MYOB or Quickbooks in the past you’ll know that at the end of the month you will always have to enter and allocate bank fees and charges. With the creation of rules you will no longer have to enter or allocate this transaction, as the software will remember and do it for you.
5. It is very efficient. Software such as Xero (www. xero.com) allows industry specific software to integrate with the accounting system which will significantly reduce the amount of double entry required.
6. It eliminates the need for software updates. These are done automatically by the software provider, so you will never have to worry about updating tax tables rolling the year end.
We are living in an ever-changing world where technological advancements are changing the way we do business on a daily basis. Cloud accounting is one of the biggest changes to the way we as business owners keep our records and track our business. It is efficient and could help you keep in front of the competition.
We, at Launch Accounting, use it and are certified advisors. We support all types of accounting software and can help your business with the transition to the new world of accounting.