The benefits of cloud accounting software
Cloud accounting software is one of the best things to happen to small businesses and accountants alike. Put simply, cloud accounting means you access your chosen accountancy software via the internet rather than physically installing it on your computer or server. The software is hosted on a highly secure remote server and all data, functions and processes are performed in ‘the cloud’ rather on your own computer.
The majority of cloud accounting providers are subscription based products and in most cases these subscriptions are usage based, meaning you can scale up or down your requirements, as your business needs change.
What are the benefits to small businesses?
There are so many benefits to using cloud accounting software. From efficiency to security, cost savings to accuracy, with cloud accounting you’ll be able to work faster, smarter and more securely. Here are just a few of the main benefits to small businesses.
• Access your information anywhere: With cloud accountancy you can access your financial information anywhere with an internet connection. You don’t need to have software installed on your computer and you’ll be able to access your information wherever you are in the world and on any device.
• Increased accuracy: Cloud accounting software updates your financial information automatically so manual data entry is eradicated, resulting in better accuracy and fewer errors caused by input mistakes. All your financial reporting is provided in real time so you will always have a crystal clear picture about how your business is performing.
• Cost savings: The subscription model of most cloud accounting services offers your business excellent cost savings. Firstly, the monthly fee is usually much less that the cost of purchasing software. Secondly, it offers much more flexibility when it comes to scaling your business. With traditional software, businesses encounter more software licenses, higher maintenance costs and increased expenditure on licenses. With cloud accounting you simply add or remove user subscriptions in line with your business needs.
• No housekeeping required: Cloud accounting software is always kept up to date by the provider so you don’t need to worry about carrying out day to day software maintenance such as downloading updates or making corrections to tax rates. The cloud provider also completes regular backups so your information is always readily available to you.
Is using cloud accounting software secure?
In most cases using cloud accounting software is the most secure option available to your business. The software is managed across multiple servers and multiple locations, so you’ll never need to worry about IT issues slowing you down again. If one server goes down, your account will automatically be switched over to another so you will always be able to access your financial information.
Cloud accounting software offers maximum security for your business’ financial information. A company computer or server with critical financial information could be lost, stolen or hacked, which could lead to an information breach. Cloud accounting however, leaves no trace of financial data on company computers and access to that data in the cloud is encrypted and password protected. They use the same hardware and super secure encryption used for secure payments and online banking. On top of that they use uncompromising antivirus and enterprise grade firewalls so you can sleep in the knowledge that you’re completely protected.
Sharing data is one of the biggest risks to business data security. Traditional methods often require flash drives to transport data, which could be lost or stolen. With cloud accounting, this is eliminated. Two people simply need access rights to the same system with their unique passwords.
At Sanders we partner with Xero which is beautiful accounting software, based in the cloud. We use Xero at Sanders for one reason. It’s the best cloud accountancy software for our clients. Using Xero means we can seamlessly access our client’s financial information in real time. It provides a totally flexible business platform that can be expanded with over 400+ different Xero add-ons including receipt back, which enables our clients to scan receipts and paper work straight into the platform, saving hours of tedious data entry.
By using Xero we can simply log in to our clients’ accounts and process the end of year adjustments. This is then updated in real time, all with little interruption to the client. Everyone who requires the information, such as the client’s team or book keeper can access the information straight away so there’s no need to send files back and forth. We can review our clients operating results at any time and provide proactive and timely advice on issues impacting the business. This enables us to help our clients keep the business on track and comply with tax obligations.
The Sanders App
Our new mobile App has been developed to make managing your finances effortless. We help you keep up to date with the latest financial news and provide you with vital accounting data, in real time, at your fingertips. You’ll have the tools you need to make decisions on the go and take care of admin jobs, such as recording your expenses or logging mileage claims, wherever you are.
Clients can access their XERO account directly through the Sanders App, giving them the ability to view and update the information they need, whenever they need it.
You can download the App free of charge using the links below.