What is Cloud Accounting?
Cloud accounting software can improve your bookkeeping efficiency, streamline your financial administration, and give you a real-time view of your critical data. But how can you decide which platform is suitable for you when there are so many options? In this article, we’ll walk you through the main advantages of transitioning to cloud accounting, as well as recommendations for the best platforms to use.
What is Cloud Accounting?
It’s nothing new to maintain track of your small business’s income and expenditures to maintain track of your past financial performance. Accounting software and double-entry bookkeeping have both been around for centuries, allowing finance teams to record and track money moving in and out of the organization.
So, how might cloud accounts help? Let’s look at the major distinctions:
Accounting software that is used in the past
Most accounting software was desktop-based before the cloud. In other words, your workplace desktop computer’s hard drive was used to install and operate the application. This has several disadvantages, including limited data access, the necessity for continuous software updates, and the continual cost of backing up all of your financial data.
Accounting on the cloud
The functionality of cloud accounting (or online accounting) is identical to that of desktop accounting, but it moves the entire process to the cloud and expands on it. There is no need for a desktop application; instead, you log in to an always-up-to-date online solution, with all data securely saved on a cloud server.
Data sharing that is safe
With cloud accounting software, you may quickly offer access to your accounts to your accountant, bank, or other consultants. There’s no need for USB memory sticks or email correspondence. Your financial advisers have real-time, secure access to all of your financial data. This is faster, safer, and provides your advisers with the information they need to help and advise you in the future.
When should your company use Cloud Accounting?
It pays to take advantage of the increased digital connections and real-time data capabilities that cloud accounting provides.
Cloud accounting’s expanded real-time data capabilities make it perfect for businesses that need quick access to precise financial breakdowns, management data, and key performance indicator (KPI) measurements. When it comes to establishing an app stack and designing a custom suite of business apps, most platforms have an open API, giving you a lot of options.
Online payment of VAT or GST
Using a cloud accounting platform to pay your taxes is faster and easier. Your transactions will be documented as you go, and you’ll be able to quickly export them into the appropriate tax return templates and send them to the IRS digitally.
Alternatives to Accounting Software in the Cloud
The cloud accounting industry is crowded, with a variety of vendors to select from. Finally, the ideal cloud accounting software for your business will be determined by your company’s size, accounting demands, and app ecosystem preferences.
There are a variety of cloud services to choose from, including:
Xero is an excellent alternative for small businesses that require easy accounting as well as sophisticated reporting as their operations expand. In addition, Xero offers a huge global app ecosystem.
QuickBooks Online — A platform designed specifically for small businesses, featuring all of the accounting features of the QuickBooks traditional desktop version as well as a robust app store.
Sage 50cloud and Sage 200cloud are cloud-based accounting tools that integrate the power of desktop accounting software.
