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Monday, June 9, 2014

Top reasons why cloud accounting could help your business

Cloud accounting benefits
Cloud accounting frees up in-office computing capacity
By Simon Henderson

Cloud accounting is a blend of two ideas that have been gaining interest in recent times. It incorporates accounting software and cloud computing helping business owners effectively and efficiently manage their accounting needs. Nowadays businesses can run their accounts without offline storage by doing their accounting in the cloud. Cloud based software enables the user to store data safely and access it with any internet enabled device anywhere.

Most native applications are tedious and straining for various reasons. It is believed that in the near future cloud software will replace them because of improved data access, they are easier to handle and due to possibilities of collaboration. Examples are QuickBooks Online and Sage One; two very powerful software packages that millions of small business owners are using to take care of their company's accounting.

What are the benefits of cloud accounting?

Cloud accounting is being used by more organizations today than before because they are beginning to realize that it adds more value and capacity to the organization without investing so much in IT infrastructure, training personnel, backing up data or installing new software. Working in the cloud has the following benefits:
  1. Businesses that set up their accounting in the cloud enjoy working from anywhere and at anytime. Working in the cloud is very location independent, providing account data and resources or any other service on demand wherever you are. With a company cloud you can provide tools needed by your accounts team, set a level of access and also monitor how your staff will handle their tasks from wherever you are.

  2. The cloud based software provides account data access and it is not constrained by storage space or software compatibility with one computer platform. Updates are free and instantly available without any hassle.

  3. With cloud applications, businesses can use the inbuilt feature to back up data to prevent the risk of data loss. Coupled with that, data is well secured because of high encryption technology like TrustE which ensures the data cannot be accessed by a third party without permission. Furthermore, a stolen laptop or computer won’t be a worry because your data will be stored safely in the cloud. In addition, your business experiences no downtimes if you ever lost data by fire or due to a broken hard drive. You only need to connect to the internet with another device and continue your work.

  4. Where there are large volumes of data to be tracked, cloud accounting software can help saving time and eliminating human error as well as duplication of work. It also incorporates features that automatically create and register income into invoices.

  5. It is possible to automatically track year round transactions efficiently and without stress as well as seek for help of a tech support team at any time to prepare balance sheets and income statements. You do not have to do these things manually anymore, spending hours going through emails and receipts with your accountant to get the job done.

About the author: Simon Henderson is a freelance blogger specialising in taxes and financial topics.

Image license: Sam Johnston, CC BY-SA 3.0