Studies have shown that the life-cycle cost savings of cloud computing are as high as 50% for companies using large numbers of in-house servers. Add to that the elimination of service interruptions caused by traditional IT issues, such as downloading updates and fixing system errors, and you can move forward a lot faster than the competition. This includes many programs which are available individually, with very short or sometimes no notice period, often with free trials.
That ensures clients can access the latest features, improvements, and security patches without manual updates. Cloud services automatically back up financial data, reducing the risk of data loss in the event of hardware failures or other unforeseen circumstances. Traditional cloud accounting accounting methods often rely on manual backups that may be prone to errors or forgotten altogether. On the other hand, cloud accounting systems automatically create regular backups of financial data, which are stored in multiple geographically diverse locations.
What is this thing called the cloud?
If you want your business to work smarter and faster, cloud accounting software is a wise investment. They give clients the option of undertaking a systems review so that owners and their teams look at areas which are a drain on time. They aim to cut out manual intervention where possible, including the use of spreadsheets. Instead, you can use expense capturing software, tailored reports either within QBO or KPI apps, or other specialist add-ons such as those dealing with stock.
The data stored in the traditional accounting software is not up to date unless one manually updates the latest invoices, expenses, incomes, etc. This is because it is expensive, challenging, and time-consuming to upgrade the software with the latest updates. Thus, you as a small business owner need not install accounting software separately on every desktop being used in your firm. Further, since everything is based online, your employees sitting in any part of the world can collaborate and access the data uploaded on the cloud accounting software from any part of the world at any time.
Cloud accounting is growing in popularity as more businesses continue to adopt cloud-based solutions in their day-to-day operations. While the cloud offers easy data transfer, management, and security, proper system setups are crucial to your success using the cloud. We prefer using QuickBooks Online because it’s the more refined solution that works for 99% of our clients. However, all of the solutions above offer cloud accounting solutions that are designed to help make handling your books easier. Small business accounting software that’s not available via the cloud can be tedious. It requires a lot of manual data entry and can suck up far too much of your time and effort.
Using cloud accounting software frees the business from having to install and maintain software on individual desktop computers. Your technology setup is crucial to maintaining your books and managing your own accounting needs. Most cloud-based accounting software will offer a demo and have extensive information on getting started with their platform. The cloud makes data and software accessible online anytime, anywhere, from any device. Data storage is one of the core ‘Software as a Service’ offerings of cloud computing.