We, as business owners, think that we would like to hold all our data close to our business (hard drive/USB). We even consider backing up our data to these devices. However, these devices become slow over time or stop working altogether. Hardware is not secure and sometimes not easily accessible. Cloud is the new technology that gives us the data in real time and gives us the latest version of the software. Cloud has an A+ quality of security that makes it difficult to be compromised by hackers. You can access the cloud wherever you are and on any device that can connect to the internet. We will discuss the benefit of the cloud for all your accounting needs.
1. Why is the Cloud so important?
In our world today, everything is now. We must have the new iPhone that just came out or the new game that everyone is raving about. There is no difference in accounting. We as small business owners need to have our financial data as soon as possible to make important decisions. You could buy the hardcopy version of the software, If you are planning on taking care of your books, this might be fine, but in a couple of years the software would have new versions and will stop supporting your version. Also, if you did want to hand off your bookkeeping to a professional it will be difficult with a hardcopy version because the professional would need to work onsite or have a professional set up a remote desktop that connects to your computer/server. This remote desktop is used for your outside professionals to be able to access the software on your computer. This will be expensive and very time-consuming. But if you purchase a cloud-based software version, you would get all the updates for free and the monthly subscription is not expensive. Cloud software is everything that you could need or want.
2. What does Cloud software offer?
Cloud software offers real-time data. Like mentioned, you will receive new version updates which means your versions will always be supported. If you hire a bookkeeper, cloud software is very important because they can work remotely and be able to provide the numbers in a matter of minutes which could potentially save the business money. The second reason a business may go out of business is cash management. Cloud-based software will help you understand your cash flow by taking advantage of many software platforms that sync with your accounting system. For example, Xero syncs seamlessly to Expensify. Expensify is a cloud software that manages your expenses. This allows business to keep track of the business spending and can analyze that data seamlessly.
3. Advantages of Cloud Software!
Cloud base software offers many advantages.
• One of the advantages of cloud software is that the business can have multiple users that can collaborate as a team easily.
• Automatic updates, you will not need to initiate or wait for the software to be updated.
• Have a clear view of the business financial data in real-time.
• Backup of your data is automatically ran, and software is updated automatically and instantly become available.
• The upfront cost is reduced. The business doesn’t need to hire a system administrator.
• With cloud software, one does not need to worry about server failure.
These are only a few of the benefits of cloud software. There are three accounting software programs we would recommend (Xero, QuickBooks Online or Wave). Please see one of our previous blogs where we compare the three software’s: https://flattopbookkeeping.com/blog/comparison-between-quickbooks-online-xero-and-wave.
We would recommend Xero for your accounting needs. Xero is the most user-friendly of the three. In our day, having cloud accounting software is a must if you want to save money and time. If you have any questions regarding cloud accounting software, let us here at Flat Top Bookkeeping help you discover which cloud software is best for you. We want what works best for everyone. Your success is our success!