The Era Of The Cloud - Accounting Outsourcing
More and more businesses are choosing not to hire dedicated accountants for their business and are now opting for the option to outsource their accounting services. With the introduction of the cloud era, this has made online accounting a whole lot easier, however for many smaller start-up companies and individuals who are used to doing things in a certain way, this can seem daunting.
This article will discuss the benefits of cloud accounting based software, and how a few small changes could make life a whole lot more easier.
So, what is the cloud and what is cloud-based accounting software?
The cloud is a term used to describe a global network of servers, each with a unique function. The cloud is not a physical entity, but instead is a vast network of remote servers around the globe which are hooked together and meant to operate as a single ecosystem.
These servers are designed to either store and manage data, run applications, or deliver content or a service such as streaming videos, web mail, office productivity software, or social media. So instead of accessing files and data from a local or personal computer, you are accessing them online from any Internet-capable device and it allows the information to be available anywhere you go and anytime you need it.
Cloud based accounting software, integrates traditional accounting software with the cloud, allowing data and information from the accounting software to be stored on the cloud, which can then be accessed by all the computers with access to your company’s network. This means that, unlike traditional accounting software, important information and processing tools can be used by lots of people at your business or outside your business, as opposed to just being downloaded onto a single computer. Upgrades and backups are also automatic, which also reduces the stress in case of an accident or natural disaster occurring, or if your business is the victim of a scam.
With cloud-based accounting services, the automation of aspects of your business’s financial responsibilities such as reconciliations, bank transaction imports and payments to employees means that there’s a lot less valuable time spent on the manual organisation of such tasks.
There is also increased uniformity between employees, as everyone is able to access the same data and information all the time, rather than sending monotonous emails back and forth simply trying to communicate certain financial inputs and outputs. Due to the fact that the cloud continuously updates information across all devices on the network, there is also no chance of out of-date information being used at a sensitive time, such as when dealing with a major client.
Xero, MYOB and Quickbooks all offer cloud based accounting software and are a good option for small businesses who need user-friendly accounting software through which to access their accounting via the cloud.