Understanding Cloud Accounting: Is it Good For Business?

Answers on Cloud Accounting Software for Small Businesses

Accounting software may not be the solution for every small business. Maintaining a physical server, or organising a remote server can be money and time consuming. The solution? What about cloud accounting software. It’s designed to save businesses time and money, providing a safe and secure solution for data storage. But what is cloud accounting, and is it good for business? We tell all below.

What Is Cloud Accounting and How Does it Work?

Cloud accounting software shares many functionalities and similarities with on-premise solutions. The main difference is that it’s hosted on remote servers, or “the cloud”. This means that users can access their cloud accounting software remotely, through the internet or another network, via a cloud service provider. This in turn makes it easier for multiple people across departments, and locations, to access the same data – streamlining your collaboration internally and externally.

Cloud accounting is a much more flexible approach to working as the data can be opened and retrieved by anyone on any device, as long as there’s an internet connection. Most platforms will allow you to generate real-time reports, while your financial information automatically updates to ensure precision across all business functions – equipping your company for a digitised future.

The Benefits of Using Cloud Accounting Software

Going through a digital transformation comes with many benefits for your firm. Not only are you preparing yourself for a digital future, but you’re helping to speed up your workflow in the process. Benefits could include:

• Data can be set to transfer straight from your bank account to your books, to avoid the manual labour spent transcribing the details required for reporting and invoices.
• Multiple users can access your cloud accounting software at any given time, streamlining the collaboration across your team.
• As everything is kept online, you needn’t waste any time downloading or continuously updating your software.
• Data is automatically backed up in multiple locations. That way, if one server goes down, you can still access your data, taking away the worry of losing important files. Even better, if you lose or break your primary device, you can still access your work through other means.
• Sharing data is easy. No more USB sticks or large emails. Simply set your access rights up to allow the relevant people to retrieve the information they need.
• Tailor your cloud accounting software to suit you, with workflow automation and customised dashboards that display important information, such as upcoming bills and cashflow.

Secure Cloud Storage for Accountants

You may have some concerns around storing your data in the cloud but, unbeknownst to some, the cloud is one of the safest storage solutions your firm can use. Most cloud accounting software leaves no physical trace of your data – for example, on computers which can be stolen or lost – and all information is encrypted and protected by passwords, reducing the risk of a data breach. You choose who can access what information and how much visibility they have, which is a much more secure approach than sending emails that can be intercepted.

Securing Your Future with Cloud Accounting Software Integrations

Cloud-based accounting software takes you one step closer towards digitising your firm, setting you up for a better future. How do you get the most out of your investment? Expand your accounting software infrastructure with document management software that allows you to secure, share and retrieve your files from one central location. The Virtual Cabinet hybrid product suite allows you to run your firm from anywhere. Book your free demo today to find out more.