The Benefits Of Cloud Computing And Cloud Accounting
Building upon a firm foundation of cloud computing, Xero and other providers have now developed services that allow small and medium sized businesses to take advantage of the speed, security, portability and cost savings that were once only available to larger groups. Here is a list of benefits that cloud computing and cloud accounting can provide you.
1. A Reduction in Cost. Keeping up with your books in the cloud allows you to save money in several ways. First, you no longer have to buy an expensive program and annual license fees for each copy of accounting software that you would have used. Cloud accounting allows you to pay a small monthly fee to access and store your information online.
You also no longer have the expense of having to upgrade your computer hardware in order to run the program, as most cloud accounting platforms will run in your browser window on a wide variety of platforms: from traditional desktops and laptops to tablets and smartphones. There is also additional savings from lower IT expenses, as you do not have to pay a specialist to download, upgrade and troubleshoot your accounting software.
2. Ease of Use. Cloud accounting services are simple for both novices and experts to use. Many cloud accounting programs allow users to automatically import their data from their banks, credit card companies and other financial institutions. They will even automatically complete their journal entries for them so that users are no longer spending hours recording and classifying individual transactions. If you’ve ever spent hours trying to gather all of your receipts and record all of your journal entries for the day or week, you know that this savings in time alone is one of the best reasons to adopt cloud accounting.
Many cloud accounting programs are compatible with prior versions and will update automatically so that users don’t waste any time on the system being down for the upgrade. Some cloud accounting providers are even cross compatible with programs from other providers so that users can easily import their prior sales figures and other information from one cloud accounting provider to another.
Cloud accounting also makes it easy to share your information with collaborators that you authorise, wherever they happen to be in the world. From partners and associates to your accountant, you no longer have to be in the same room to get help doing your books.
3. Increased Speed and Efficiency. With traditional accounting software, you used to have to wait for your information to post in order to be available. In the past, this waiting period was normally overnight, but with cloud accounting, your information is up-to-date instantly.
If you have a high volume of sales or other transactions, with cloud accounting you also don’t have to worry about your system slowing down or “timing out” due to the volume, or possibly even losing sales and other data, since you no longer have to wait for it to download and process on your individual machine.
All of the reports that can give you an instant and thorough look at where you and your company stand at any given moment can also be easily and instantly produced, giving you greater control over your processes and enabling users to take faster action to correct or change the course of their business.
4. Increased Data Security. Since everything is in the cloud, you don’t have to wait for security patches to be released and applied to keep your information secure. If and when a data breach occurs, updates are automatic, which closes the window of opportunity on hackers and others with malicious intent.
Your data is also more secure since it is stored offsite and in the cloud rather than on an individual machine that could be lost or stolen. No matter how much encryption that you might deploy on an individual machine, if it is in the hands of a hacker it is only a matter of time before they defeat this measure. Storing information in the cloud, rather than on individual data sticks, desktops and other devices removes this threat.
5. Greater Freedom and Control. When someone leaves your organisation, or their roles change, you no longer have to worry about issuing new passwords to everyone on the team, cloud accounting allows you to remove or revoke a collaborator’s authorisation at any time, automatically.
Since you pay for your cloud accounting services on a monthly basis, you are not tied into any lengthy commitments. You are free to leave for another provider, or go back to using another method of accounting at any time.
Now that you know a bit more about the benefits, you are probably curious about how to get started. If you would like to learn more, why not get in touch today and let us welcome you to the cloud?