Businesses that are continually seeking ways to enhance efficiency and improve accuracy tend to successfully stay ahead of the competition. One significant advancement in financial management is cloud based accounting.
This modern approach uses cloud technology to streamline processes, provide real-time insights, and offer unparalleled flexibility, freeing up time for business leaders to concentrate on the bigger picture. Accounting firms have two choices when it comes to cloud accounting solutions: they can use the technology directly with clients, or they may recommend and commission the software to clients.
In this blog, we explain what cloud based accounting is, why businesses should consider using it, and some of the leading cloud-based accounting solutions available on the market.
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Cloud-based accounting, also known as online accounting, refers to a method of managing financial data and processes through secure online applications. Unlike traditional accounting software that can be installed on a local computer or server, cloud accounting software is hosted on secure remote servers.
Businesses can store and access their accounting systems, reports and financial data via the Internet, allowing teams to work from anywhere, at any time.
By using secure, web-based software, businesses can streamline processes and gain the upper hand on their competition. Staying ahead means embracing technology that enhances efficiency, accuracy, and collaboration. Cloud-based accounting software is revolutionising the way businesses manage their finances, offering many benefits that traditional accounting systems simply cannot match.
Here's why many businesses use cloud based accounting:
One of the most significant advantages of cloud based accounting is the ability to access financial data from any location with an internet connection.
There’s no need to install software on individual desktops; instead, everyone can access the cloud on their own devices, allowing business owners, finance teams, remote workers in multiple locations to access key data and reporting, which comes with its own advantages, including making collaboration easier, as well as significant time and cost savings.
Some software solutions even offer a mobile app, so whether you are at the office, at home, or on the go, your financial information is always within your reach.
When businesses are still using old school methods, like spreadsheets or even paper-based accounts, it can take a lot longer to access your data when you need it and it may not always be accurate, leading to bigger issues.
Cloud based accounting provides real-time updates (typically never seen!) on financial transactions, meaning businesses can view the latest financial data at any time, offering a central hub for your records and a clear and current picture of the company's financial wellbeing.
While traditional accounting software requires significant upfront investment in hardware and software along with ongoing maintenance costs, cloud accounting operates on a subscription basis, reducing initial expenditure.
Additionally, the costs of updates, backups, and technical support are typically included in the subscription fee, making budgeting easier and more predictable.
By reducing the need for physical hardware and paper-based accounting, cloud-based software contributes positively to environmental sustainability. Some consider this an eco-friendly approach that not only helps reduce your carbon footprint but also aligns your business with growing consumer and regulatory demands for sustainability.
Cloud accounting software offers a high level of security for your business's financial data through various measures.
Cloud accounting software companies use encryption to protect your data. Encryption involves converting your data into a code that is unreadable without the proper decryption key, ensuring that only authorised parties can access and understand the information. This process safeguards your financial information from unauthorised access and potential cyber threats.
Firewalls are used to further protect cloud servers from unauthorised access and cyberattacks. These barriers monitor and control incoming and outgoing network traffic based on predetermined security rules, acting as a shield against hackers.
Most reputable cloud accounting software providers have dedicated security web pages detailing their specific measures to protect your data. These measures often include regular security audits, compliance with industry standards (such as GDPR, SOC 2), and continuous monitoring for potential vulnerabilities.
While both cloud and desktop accounting software have their security risks, cloud solutions tend to offer better protection through advanced encryption, strong access controls, and robust network security measures. By choosing a reputable cloud accounting provider, you can leverage their expertise and resources to keep your financial data secure.
Ask yourself, if someone walked into your office and took the machine storing your data and accounts is more secure than a cloud based server? The answer is no. Learn more about how your data is secure when working with Advancetrack: FAQ: How secure would my client data be if I worked with Advancetrack?
There are numerous cloud-based accounting solutions available, each with their own unique features and advantages. At Advancetrack, we use proven systems for seamless integration, here are some of the leading options in the market:
QuickBooks Online is one of the most popular cloud-based accounting solutions, particularly among small to medium-sized businesses. It offers features for businesses to deal with invoicing, expense tracking, payroll, and financial reporting. QuickBooks Online is known for its user-friendly interface and can be easily integrated with many other business apps.
Xero is another widely-used cloud based accounting solution, many feel it’s easy to track and manage cash flows using this software and can enjoy other features like bank reconciliation, inventory management, and multi-currency accounting. Xero also provides third-party app integrations, making it a good choice for businesses with diverse needs.
MYOB is known for its effectiveness in providing a wide array of accounting functions, such as purchases, invoicing, sales, purchase orders (POs), payroll, and inventory management. This versatility makes it an invaluable tool for businesses across various industries. This is still widely used in the APAC region.
Sage Business Cloud Accounting is a versatile solution suitable for small businesses. It provides features like cash flow management, invoicing, and financial reporting. Sage also offers advanced functions like project accounting and inventory management, making it a scalable option for growing businesses.
Cloud based accounting is transforming the way businesses manage their finances. By leveraging the power of the cloud, businesses can enjoy enhanced accessibility, real-time insights, cost efficiency, and security. Whether you are an accountant yourself or a business leader, there is a cloud accounting solution that can meet your business needs.
At Advancetrack, we can help you integrate cloud based accounting software into your operations with minimal disruption and ensure the transition goes as smoothly as possible.
If you’re ready to move your financial data to the cloud, book a call with the Advancetrack team today.
