If you’ve read anything about accounting software in the past year, odds are you’ll have come across references to cloud technology. So what is cloud technology and what potential does it offer you and your business?
Accounting software with a cloud component enables your data to be stored securely offsite on servers/hard drives managed by a cloud provider. This means individual users can access the data remotely via the internet, anywhere, anytime.
The cloud concept is not a new one. Large businesses have been using private ?clouds? for many years to allow multiple users access to central business systems and to connect enterprise resource planning (ERP) systems with third party providers or customers (for example, online ordering).
The creation of affordable cloud-based accounting solutions for small to medium businesses means you can now take advantage of the same cloud technology big businesses use.
Small businesses reap the benefits from cloud accounting through greater efficiency, enhanced customer experience and increased competitiveness against other larger businesses.
1. Why convert to a cloud-based accounting system?
You can work on your business where and when you want to in the office, at home, or on the road.
When your accounting software is held on a hard drive on a computer, it can only be accessed when that computer is available. For many businesses, this means access is restricted to a single computer and a single location. When you move to a cloud solution, you have the flexibility of being able to access your company files anywhere you have access to the internet. So, you can have one business partner out with the laptop recording quotes or sales while another business partner does the book keeping at a different location with both partners inputting their data into the same place. This creates much greater business efficiency.
2. You’ll have peace of mind because your data is always backed up.
With your business information held in a secure third party server, you always have a secure data back-up. This means essential business operating data is still available if something goes wrong with the office computer, your office is destroyed by flood or fire, or you are robbed.
3. You can build your business by sharing data with your accountant in real time.
If you choose, you can give your accountant access to your company files via the cloud. This eliminates time-consuming travel or file transfers. It also gives you the opportunity to have your accountant collaborate with you on building your business by monitoring key business indicators such as inventory levels and debtors.
Like all online tools there is an element of risk with cloud computing and it’s important to have other forms of back-up for unforeseen event. Cloud computing is, however, a wonderful flexible tool that can greatly enhance your business operations.