Heard of ‘Cloud Accounting’ but are unsure what it is and whether it can beneficial to your business?
Just like traditional accounting software; Cloud Accounting is used to record and process your accounting transactions. Unlike traditional software that is hosted on a desktop hard drive; cloud accounting software stores and accesses data over the internet which is also known as ‘The Cloud’.
Just like any website, the cloud is accessible through any smart phone, laptop and/or tablet wherever you are in the world with internet access. This type of accessibility is what’s driving demand away from traditional software to cloud software as it is often limited to the hard drive on which it’s installed and has to be constantly updated and backed-up in comparison.
While many of the major cloud accounting software providers have been operating in this market for the last 10 years; it is only recently that Australian businesses along with the rest of the world have seen a major push in the adoption of this technology.
Due to this increasing demand, the major software providers are investing a lot of money in perfecting their products in order to outperform their competitors. The major players in the current market include Xero, MYOB Essentials and Intuit Quickbooks.
Benefits of cloud based software packages;
- The ability to automate many manual accounting and bookkeeping processes.
- Accessibility of data regardless of your location or the device you are using.
- Real-time updated data.
- Accommodate your business’s growing needs.
- Facilitate a paperless environment.
- The ability to reduce costs and increase efficiency.
- The ability for owners to interact with their accountants in real time.
- The software is automatically kept up to date with the latest updates.
- Integration with other third party add-ons, such as stock, e-commerce, CRM and expense management solutions.
In trying to decide which cloud accounting software to use, you need to understand your business needs.
Each of the solutions differ in their functionality and useability for the particular needs of your business which may require payroll, stock systems, add-ons, invoicing and reporting. All of which will impact the monthly subscription price.
