What is cloud accounting?

Wondering ‘what is cloud accounting?’ Like internet banking, cloud accounting works by storing your business books online. This safely stored financial data could involve everything from employee income, assets, business purchases and more. Cloud accounting not only lets you have a clear view of your finances but can also let you automate processes and create accurate reports of cashflow. As the data is in the cloud, you can access it from anywhere in the world if you have access to the internet (and the correct login details). To help you learn more about ‘what is cloud accounting’, we’ve highlighted some of the benefits of upgrading to cloud software to manage your finances.

 

Benefits of cloud accounting

Benefits of cloud accounting #1: It’s Accurate

With cloud accounting, you don’t have to spend hours transcribing your business books and making sure all the sums are correct. Cloud accounting allows you to automate tasks that would otherwise take up a lot of time and deliver accurate reports to help you make better business decisions. Cloud accounting tools continually give you an accurate impression on how your business’s finances are doing and can even be customised to remind you when to pay invoices or alert you if money is owed.

 

Benefits of cloud accounting #2: It’s easily accessed

Unlike using physical books or storing everything on your computer, cloud accounting can be accessed from anywhere on any device. Of course, good cloud accounting software will have a stringent login process and will likely have a two-step authentication for peace of mind. You can also customise settings so that only you can see certain parts of your finances – which is ideal if multiple people have been added to the account. Many of the popular cloud accounting platforms also offer apps, so you can access your account easily on mobile.

 

Benefits of cloud accounting #3: It’s open to collaboration

If you regularly deal with an accountant or bookkeeper, cloud accounting software makes it easy for them to go through your finances quickly and efficiently. The multiuser access allows you to easily collaborate with colleagues, employers, or advisers, and gives you full control into who sees what.

 

Benefits of cloud accounting #4: It’s secured

Undoubtedly, one of the biggest benefits of cloud accounting is that you can be secure knowing all your data can’t be lost easily. Unlike storing it on a hard drive, your data won’t ever be vulnerable to computer crashes, viruses or accidents. This is because accounting software will regularly back up your files and secure them offsite. If you do lose something, a simple call to tech support should be able to recover your files.

 

Benefits of cloud accounting #4: It’s efficient

Using cloud accounting software allows you to streamline your processes, which leaves more time to spend on your business. This could be by automating your set up to pay vendors on the same due date every month, sending out invoices, automating the payroll process or quickly compiling financial reports.

 

Automate your finances with Taggart & Partners

We hope we’ve given you a clear idea on ‘what is cloud accounting?’ Thinking about setting up cloud accounting for your small business? Get in touch with Taggart & Partners accounting firm for any enquiries you have about cloud accounting by calling us on (07) 3391 1188, emailing enquiries@taggartandpartners.com.au or by getting in touch online.

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