iKeep Cloud-Based Accounting Facts

 

3 Benefits of Cloud-Based Accounting Tools for Small-Business Owners

• Enable smart organization for a distributed workforce. Since accounting information stored in the cloud can be added or accessed anywhere, team members can quickly and easily complete their work regardless of their physical location. Whether a sales rep needs to add expense receipts or a project manager needs to check an invoice for a supplier, having cloud-based tools in place makes organizing and accessing important information as easy as taking a picture of a document or searching by vendor, amount or date.
• Maintain relationships and easily verify discrepancies. Relationships with vendors and distributors play an enormous role in the success of many small businesses. When a vendor or distributor questions why a bill hasn’t been paid, small-business owners that leverage cloud-based tools can quickly search for invoices. Advanced cloud tools allow team members to search by virtually any term to locate a bill and identify whether it was missed and pay for it quickly to preserve the vendor relationship.
• Use a broader suite of secure apps. Cloud applications such as QuickBooks Online and Neat not only provide access to information and documents from any device, but they also integrate with other cloud-based tools. As soon as a small business starts using one cloud-based accounting technology, it’s easy to extract and leverage data across a number of different platforms and reduce time spent on manual data entry. Small-business owners start businesses because of passion for what they do -- not to spend time managing paperwork. Migrating traditional accounting workflows to cloud-based solutions enables small-business owners to reduce time spent managing information and improve overall operational efficiency.
  

6 Reasons to Move to Cloud Accounting – Quickbooks

• Accuracy: Not only is manual processing tedious, it is also prone to errors and compliance risks. With cloud-based accounting, duplicated entries, fraud and other discrepancies can easily be detected because the whole process is fully automated. You also save on time that would have been spent on checking or locating errors.
• Collaboration: Traditional accounting software only allows access to a single user. On the other hand, utilising cloud accounting with the reign of smartphones and other handheld devices lets users edit financial data and view real-time accounting information anytime, anywhere. It makes it easy for your team to collaborate. This means key people stay connected to their data and their accountants.
• Free Storage: Everything is done online, which means you don’t need to install anything. Moreover, updates are done regularly and automatically. This financial benefit helps reduce overhead costs and other fees as they are managed by the cloud service provider.
• Security: Cloud technology provides backup functionality to prevent the possibility of data loss. You can control the privacy access of confidential data. So even if your computer is stolen, your data is safe and backed up because it is stored elsewhere.
• Integration: Most cloud accounting software can integrate with other cloud-based software, which makes for greater control and flexibility. If you have specific needs, say a payroll system or a management tool, you can often integrate systems using add-ons.
• Efficiency: With these advantages, overall efficiency and productivity are sure to be improved. There’s no need to constantly worry about installations and maintenance; spend more time focusing on revenue-generating activities. Seeing your data streamlined gives you a clear overview of your finances at a glance.
  

Why cloud accounting is good for business – Xero

• You have a clear overview of your current financial position, in real-time.

• Multi-user access makes it easy to collaborate online with your team and advisors.

• Automatic updates mean you can spend more time doing what you love.

• Everything is run online, so there’s nothing to install and everything is backed up automatically. Updates are free and instantly available.

• Upfront business costs are reduced – version upgrades, maintenance, system administration costs and server failures are no longer issues. Instead, they are managed by the cloud service provider.
  

The advantages and disadvantages of cloud computing

• Undoubtedly ease of access is the prime advantage of cloud accounting.  Online accounting means just that – it is online!   You or your employees can access your businesses financial data from anywhere worldwide, at any time without having to download and install anything on their desktop. All you need is an Internet connection!  This ability to take care of your bookkeeping on the go means that business owners are not stuck in one location but can spend more time travelling, gaining new clients and taking care of other important business matters without having to be in the office.

• Price is always important and another advantage of cloud accounting is that it can be the cheapest way to go. Firstly, there is no need to pay upfront for all of the cost as you would with a desktop accounting package – because you pay monthly. Secondly, unlike buying an accounting software package, it requires absolutely no updates as they are automatically included in the price.

• Paying monthly obviously makes it easier to manage your cashflow, but also you can reduce your computer costs because all the normal costs like maintenance, version upgrades, system administration costs and server failures are no longer your problem because they are all managed by your cloud accounting service provider.

• Low total cost of ownership or TCO – cloud accounting applications are mainly subscription based and can scale up depending on your business’ needs. Also, you normally don’t need any major up-front investment in hardware and software. Businesses with cloud accounting technology benefit from better cash flow and don’t need as much of an IT presence or staff. Upgrades are also managed seamlessly by the provider meaning you automatically enjoy the new features that come along. What’s better – all this is at absolutely no extra cost!

• Real time financial information – when managed properly cloud accounting will give you and your business up-to-date and current financial information (most packages have a financial dashboard which helps this).  Which helps you to respond to business change by giving you financial information at your fingertips.

• Your team can easily access data wherever they are! Smartphone and tablet apps give you information on the move, wherever you are, because software housed in the cloud can be easily accessed anywhere there is a connection, anytime and from pretty much any device!  Cloud accounting supports those businesses which have mobile personnel like service and sales teams.

• Backup and data security are a breeze!  Generally, your cloud accounting provider offers data security which is compliant with the Payment Card Industry Data Security Standard.  The PCI standard can be too costly to achieve for a small firm, especially if it is to have its on-site application certified. The level of availability and security, backup and disaster recovery offered by a software-as-a-service supplier greatly exceeds the level which a company can provide if the application is housed on-site.  You don’t need to pay extra for online backups because they are done for you and you don’t need any special servers or desktop configurations – just an internet enable device to use it.
  

5 Benefits of Cloud Accounting Software for Your Business

• Spread the cost of the software by making payments by monthly subscription instead of one lump sum.

• All the upgrades for cloud accounting software are carried out by the supplier at no extra cost, so you are always on the latest version.

• You can access cloud accounting software anywhere that has an internet connection, so no need to use a particular computer or be stuck in the office.

• As the name suggests, all the data is stored securely in “the cloud” which means on the supplier’s bank of servers, continually backed up, so you never have to worry again about using up your own hard-drive or taking regular backups.

• Best of all, with cloud accounting software, your accountant can share your data, so they can help you if you are stuck on recording certain transactions in your accounts, like the purchase of a new laptop.  They can post their year-end journals directly, so your data is always up to date, but more importantly we can be more help to you.  For example, if you would like your accountant to check the figures for your VAT Return or even file it directly for you through the software with HMRC, or prepare some management accounts for you, and even help you with key decisions in your business, the sky is the limit with cloud accounting software.
  

How Cloud Accounting Can Benefit Your Small Business

• Computers are vulnerable to the virus attacks. I know every wise businessman installs a best anti-virus solution but virus makers are getting smarter every day. Your computers are just one infected USB away from getting that deadly virus. If not USB, it’s the internet from where most viruses come these days. These viruses are difficult to remove and sometimes wiping the entire hard disk is the only option. As there is nothing to be installed in case of an online software, your data is safe in cloud (virtual servers) even when your computer is affected by a virus. You can just use another computer to access the application.

• Weak or No Access Control are serious threats. Do you know another easy way to lose your financial data? Don’t setup any access controls on your computer. If you don’t know what this means, then I’m sure you don’t have these controls at your office. Normally, we have only one easy-to-remember (and guess) password to unlock our computers and its often shared with other ‘trusted’ colleagues. It’s often ‘okay’ to plug in USB drives to transfer data (and movies and songs). Anyone can accidentally delete important files even without evil intentions. It’s often impossible to trace if someone copies important files from the computer. In case of online accounting, nothing is stored locally and it’s not possible to steal or copy data without an authorised access to the software.

• Free internet can sometimes turn out to be expensive. Employees use office internet casually and often do not give much thought to the security. If office computers are not protected by Firewall or internet security software, some malicious sites can quietly install malware on the system which can later harm your system and cause data loss. All reputed cloud accounting software providers use secure HTTPS connection with strong encryption levels. Firewall systems protect the data from online intruders.

• Backups are taken only after data loss. We all know importance of regular data backups but are not disciplined when it comes to actually protecting our data. Even the backed-up needs to be protected and organised in such a way that it’s easy to restore when needed. Many business owners understand this but still not take necessary steps to back their financial data. Cloud accounting software providers take periodic backups and have systematic process to retrieve the backups when needed.

• Unforeseen incidents. In an unfortunate incident, one of close friends once left his laptop bag in his car and stepped out to buy something just for few minutes. When he returned back to his car, he was in a rude shock. Window glass was broken and his laptop bag was not there. Unforeseen incidents like theft or fire can happen any time and you might not get a chance to protect your data. According to this wikipedia article, business lose billions of dollars every year due to computer viruses alone. In such instances, even if you lose your laptop or computer, your financial data is safe in the cloud.
  

Why cloud accounting makes good business sense

• A higher degree of flexibility. Cloud accounting software can be accessed from anywhere at any time on any device, meaning you can have your numbers to hand when making key business decisions wherever you are.  Plus, you can get a real-time view of your finances at any time of the day.

• Centralised data for more efficient collaboration. Working in the cloud makes it even easier to work with UHY Hacker Young as your accountant.  Multiple users can log in to cloud accounting software at the same time, allowing us, the accountant, and you, the business owner, to access financial data at the same time.
• Enhanced data security. Cloud accounting is more secure than traditional accounting methods as there is no requirement to transfer data between clients and accountants.  Most cloud accounting providers take great measures to ensure your data is safe, including backup power supplies, firewalls, data encryption software and regular, third-party security audits.  Furthermore, cloud accounting provides an improved, more efficient service, with speedy processing of data.

Bookkeeping & Payroll experts servicing small business & start-ups in Australia. Platinum Xero Certified Advisors & Intuit QuickBooks Online ProAdvisor.