Cloud accounting packages such as QuickBooks and Xero can be a huge benefit to small business owners trying to manage their financial transactions and run their businesses effectively. Read on to find out how cloud accounting can help you.
Problems with traditional accounting systems
There are a number of problems with traditional systems:
- The data in the system isn’t real time, which means the business owner doesn’t have the most up to date information.
- Traditional systems require software to be installed onto one computer, which must be backed-up and updated at regular intervals.
- Software and business data is held on one computer which makes it vulnerable. The data may not be secure or reliable.
- Only one employee has user access. This means other key people within the business are unable to view or access key financial data.
- The business owner needs to manually back-up the system. This can be costly and complicated and puts financial data at risk if not done correctly.
- Software upgrades can be costly and time consuming – time a business owner just doesn’t have!
Is cloud accounting secure?
Understandably, as a small business owner you may have concerns about a cloud service provider storing your data. However, the cloud is one of the most secure ways to store information.
- If the business suffers some sort of disaster, such as fire or theft, being in the cloud means business productivity will not be affected. The data still “lives” online and is stored off-site, and as long as you have access to a mobile device or computer and the internet you will have access to your software and data.
- You may also be concerned about inviting additional users, but you are able to control the level of access each user has and determine what they are able to view or change within the software. This is much more secure than emailing files or carrying a USB stick with your data on it.
- Security is a primary concern for cloud based software companies and they will always ensure that the security and privacy of data about your business are airtight.
How cloud accounting can benefit your business.
- Access to real time information, from any location.
- Providing access to multiple users makes it easy to collaborate with your team or your advisors.
- Automatic updates means you will always be compliant. With the imminent onset of MTD rules this is invaluable to the small business.
- No software is installed on a local PC or device. Backups are performed automatically and all software updates are instantly available to the business.
- Upfront costs are significantly reduced and there are no unexpected upgrade or maintenance costs. These are covered within the monthly fixed fee.
Cloud accounting allows data to be fluid and accessible. It allows you, as a small business owner, to run a business from anywhere without the worry of upgrades, backups or loss of data. It won’t suit every business and here at Debono Accounting Services we are happy to work with all clients. However, where it makes sense we will actively promote online accounting services as it helps us to help you, and with the requirement to follow MTD and GPDR rules, it will also ensure your business remains compliant.
Debono Accounting are QuickBooks Pro Advisors and Xero Certified Advisors, so if you are a small business interested in cloud accounting, or you already have it but need some help, please contact us.