Cloud-Based Accounting Software
As technology continues to advance, new, more efficient ways of operating are being found. One of these is of course the ‘Cloud’. The cloud is simply a term used to describe a worldwide network of servers that are connected in order to operate as one system.
There is no physical ‘Cloud’ rather this is just the term given to describe this network. This network of servers simply stores and manages data, runs programs and delivers services such as video streaming and CMS software. What this means is that rather than accessing such data and programs from your own personal computer or network, you can access them from any machine, anywhere in the world – enabling you to get what you need regardless of where you are.
The 4-Types of Cloud
There are four different types of cloud currently in use – these are:
- Public cloud – This shares resources and offers services to the general public over the Internet – these are generally not used for business purposes
- Private cloud – Does not share resources with the general public, instead sharing such information over a private internal network – this is more commonly used for business purposes
- Hybrid cloud – this is a combination of private and public clouds
- Community cloud – Similar to a private cloud, this shares information and resources only between related organisations and groups – such as government departments
Cloud Accounting Software
Accounting software is now available on the cloud and can help your business operate quicker and smarter. Providing you with an easy to access, complete overview of your business’ finances, cloud accounting software enables you to improve how you operate by streamlining decision making and improving collaboration among team members. Saving you both time and money, cloud accounting software is far easier to use than more-dated traditional accounting software and can be easily scaled to reflect changes in operations, etc.
The problems of traditional accounting software
With more and more businesses now turning to cloud-based accountancy software, the problems associated with more traditional-style programs are being clearly highlighted. The first, and perhaps the biggest problem is the need to continuously update existing software. Often time consuming and frustrating, this need to constantly have the latest version of the accountancy software you use is eliminated by cloud-based software as you have continuous access to the very latest version – with updates made automatically and thereby removing any need on your behalf to check what version you are using.
Traditional accountancy software is often only accessed on one specific computer, and by one designated person. This can cause real problems if this person is sick or suddenly leaves your employment, as well as preventing key employees from accessing important customer and financial information when needed. Other problems identified by users include the added expense of updating software, as well as customer support often being slow to respond to problems and expensive to implement.
The benefits of cloud accounting software
Whilst there are many benefits to cloud accounting software – see below – perhaps the biggest is the freedom it gives you and your business. Cloud-based software enables you to access your accounts from any device that is connected to the internet. Such connectivity means that business owners can keep in constant touch with their data and accountants. No longer tied to one machine or person, business owners can examine their accounts from anywhere and with nothing more than a few clicks of a button.
Easily integrated with existing software, cloud-based accounting software is scalable, cost effective and in general much easier to use. Add to this there being no need to install and run numerous applications, nor pay or wait for expensive updates and purchase additional computers, and it becomes very clear that cloud-based accountancy can enable business owners to operate more effectively. Often featuring monthly payments for services, cloud-based accountancy software is proving to be a very important, cost-effective tool for modern businesses.
Security is everything
Using the internet is no longer something new to most people. Technology has entered every aspect of our lives, and because of this, online security is of course paramount. Security has come a long way in recent years, and cloud-base security is no different – offering business owners unrivalled safety. The cloud is one of the safest ways to keep data secure because your information is not reliant on one single device or location. Therefore, if your equipment is destroyed or stolen, your data is still secure and safe. Furthermore, with your data stored offsite, should there be an unforeseeable event such as a fire, flooding or natural disaster, your information is again secure because it is stored offsite. This means your businesses’ productivity need not suffer, and you can be back up and running in no time.
Cloud-based accountancy software also removes the need to email sensitive data to colleagues or use USB sticks which can be easily lost or accessed. Cloud-based software enables you to control who has access to your files and to what level – increasing security and streamlining such processes for your business.
The choice is yours!
Many businesses of course still use more-traditional, office-based accountancy software, and the thought of swapping this for a new one can seem daunting. However, as we have shown, the long-term benefits of cloud-based software include reduced costs, streamlined operations and more time to spend on your business. Not only are such systems easy to set up, but the increased freedom and flexibility they provide can have a very real and significant effect on a business. In particular, small businesses are finding this increased freedom invaluable. Enabling you to run your business from any location you wish, you can make important decisions and get an instant up-to-date picture of your business anytime, anywhere.
