Cloud accounting is simply using the internet to access your accounting software instead of installing the software onto your computer’s hard drive. It’s one of the best solutions to emerge for micro and small business owners worldwide. If you have a yahoo mail account, an outlook mail account or a hotmail account then you are already using the cloud to log into your email account.
Cloud accounting works in the same way, you will use the cloud to login into your accounting software. Business owners are constantly challenged to be more competitive and work efficiently. For that purpose, they need to keep abreast of new technology that is being offered to the market. Cash management is a big area of concern for growing businesses and cloud-based technology is the best choice for managing cash flow.
What are the advantages of Cloud Accounting?
It can be accessed anytime, anywhere, by you, your bookkeeper and your accountant
With a Wi-Fi or mobile internet connection you can access your real time data any time anywhere using multiple devices, whether it be via your desktop computer, your laptop, your iPad, your tablet or your smart phone. You also don’t need to wait for a back up to finish before you can access your data.
You don’t need to worry about buying a server to store your accounting software or paying a third party to keep a backup of your data in case of computer failure, theft or fire.
Cloud Accounting is safer than on site accounting as the data is automatically backed up in the cloud so you don’t need to worry about backups failing, servers crashing or even being hacked.
It’s always up to date and ATO compliant
Cloud accounting software is updated regularly by the online provider. These updates include software improvements to enhance user experience. They also include any annual changes to tax tables and superannuation compliance.