Have you heard about cloud accounting but aren’t sure what it is? The principles of cloud accounting are no different to traditional accounting, however the process is much more innovative. This creates efficiency and helps businesses become more agile and adaptable to changing technology.
If you run a company that’s fully or partially remote, cloud accounting for small businesses will be easy to implement. Since the cloud centralises your documents and is easy to access, it works well for virtual teams.
Here’s all you need to know about bookkeeping in the cloud and how to make it work for you.
What is Bookkeeping in the Cloud?
If you’re not already familiar with cloud technology, here’s a brief definition. Basically, “the Cloud” is databases and programs that are online. If you have the internet, you have the Cloud. When you use the Cloud to store something, you just upload it to the internet. It stays there until you need to access it again.
As far as the benefits of bookkeeping in the Cloud, the nicest thing is that you don’t have to worry about keeping track of who has what. Everyone accesses the same information from the same place. It’s a simple solution that’s easy to implement, plus it saves time and money.
Cloud Mobility for Flexible Growth
Traditionally, accounting systems would not allow third-party app integration and relied on local systems and softwares. Today, 73 percent of organisations have at least one application or a portion of their business systems in the cloud, according to a 2018 Cloud computing survey by IDG.
With Cloud computing, businesses can choose from hundreds of third-party apps and softwares that can be customized to the company’s own needs and strategies.
Cloud-based technologies have seen a dramatic increase in adoption, as mobile technologies become accessible to over 3.5 billion people worldwide.
It’s this mobility that transforms what was previously possible. With cloud accounting, employees can login and manage company accounts from wherever there is an internet connection.
This means businesses and staff are no longer tied to a single license or a single dedicated computer. It dramatically streamlines internal operations, reducing human error and miscommunication in the process.
Bookkeeping in the Cloud involves using centralised data with multiple access points. When you use Cloud accounting, you can access your data anywhere, as long as you have internet access!
This means greater portability, which works well for presentations to a bank or clients. You’ll also have an easier time coordinating your team because everyone can see the same info and share messages via bookkeeping technology.
Why SaaS Is Better
Another benefit of using Cloud-based bookkeeping for small businesses is that you’ll be able to use SaaS, or Software as a Service. Using SaaS means you won’t need to download software to your computers because it’s all online. Just log in, and you’re ready to go!
Online accounting software typically requires a subscription that’s paid yearly or monthly. It’s more reliable than locally installed software because it’s maintained elsewhere. You won’t have to fix bugs on your own or buy and install it.
Get Started With Cloud Accounting for Your Business
So that’s a quick introduction to Cloud-based accounting. It’s easy to use and saves you the hassle of having to download multiple copies of software. It’s accessible anywhere you have internet access and great for remote teams who need to access the same information quickly.
Does transitioning to Cloud-based accounting sound like the right move for your business?