What You Need to Know About Cloud Accounting

Everyday people use cloud technology to share, secure and store their data, from business documents to personal pictures. It’s easy to see why- it’s fast, simple and safe, especially compared to the more traditional methods of email attachments and flash drives. If this technology is already being used in everyday life why isn’t it being used in accounting? Enter cloud accounting. Cloud accounting software is similar to traditional, on-premises, or self-install accounting software, only the cloud accounting software is hosted on remote servers. It’s exactly like traditional accounting software except it’s is far superior in five ways.

Firstly, cloud accounting software is mobile and flexible. It allows businesses and accountants to update data and access it whenever and where ever. Traditional software is confined to one or two physical computers and sharing data has to be done through flash drives. The second benefit of cloud accounting is the real time aspect. Software and data updates can happen immediately meaning as a business you get a real time look at your finances and your accountant does too, which means they are able to provide you with the highest level of accuracy. Cloud accounting is also superior over traditional software because it has increased accuracy. Inputting data happens immediately cutting down the amount of human inputting errors and lost receipts. Some of the top cloud accounting softwares are xero and quickbooks cloud accounting.

Security is the fourth reason why cloud technology is the future of accounting software. Gone are the days of having to manually transfer financial data through a flash drive or have it all stored in a single piece of equipment. This method leaves data in danger of being damaged, lost or stolen but with cloud accounting data is stored remotely in the cloud and only accessible through encrypted channels with password protection. Cost is the fifth and final reason why cloud accounting is better. Unlike traditional software, the purchase of expensive equipment or updates, not to mention additional costs of IT personnel and backups, is not required.

With all these pros of using a cloud accountant why are you insisting on grounding yourself in the past with traditional software?