Cloud Accounting, What is it?
The model is easy to grasp: cloud accounting basically puts your accounting system in a secure space, online so that it is completely accessible to you via a web browser or a secure remote connection. It is one of the most exciting changes to happen in the accounting industry.
There is Two Ways to be in the Clouds
There is generally two ways your accounting system can be on the cloud. The first way to is to switch to an online accounting system. These systems typically have fewer features and will only be right for a client with a need for a simpler accounting system. In industry speak, this type of system is called SaaS, which stands for Software as a Service. MYOB Account Right, Intuit, and Xero are Examples of online accounting systems. Transferring from a desktop accounting package to Saas, is a major change and will likely require conversion setup and training.
Secondly, it can be “hosted.” This means that the current software you are using on your desktop, such as QuickBooks or MYOB, does not change. Your company file does not change either. The only thing you do differently once it’s set up is click a different desktop icon to start the software. Once you log in, most everything else is the same. You may notice minor differences in Microsoft Excel® access, printer access, and some of the other interfaces, but it’s fundamentally the same experience.
Why would you want to move to the cloud, if it’s the same? Because it completely removes the passing back and forth of the file among you, your bookkeeper, your accountant and anyone else that needs to update or access your accounting file. No more DropBox or YouSendIt downloads. No more restores.
Hosting saves an enormous amount of time because the people you grant access to can login to your file from anywhere.
Benefits
There are many benefits to moving to the cloud; here are just a few of the more common ones:
- Access to your accounting system anywhere, anytime. Businesses will benefit significantly from a hosted solution if they have multiple locations.
- There is one central file, no more concerns about who has what version and whether the adjustments the accountant made were updated or applied. Multiple people can be accessing it at the same time as long as you have the right number of user licenses.
- You won’t need to apply or wait for software updates. The Saas or Hosting provider will do all updates.
- Data protected by tighter security. Data centres must pass strict audits and have multiple layers of state-of-the-art security. Which is far more data security than any small business can afford to provide for their own data.
- For disaster recovery purposes there is an automatic offsite back-up.
Concerns
Clients’ two major concerns include security, which has been covered above, and costs. In regards to costs, looking at return on investment is the most important. Will the time you save be of greater value to you than the costs of hosting or moving to a SaaS? With each client that answer varies.
Curious About the Cloud?
If we’ve sparked your curiosity about cloud accounting, please feel free to contact us so we can continue the conversation.