Cloud Accounting

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What is Cloud Accounting?

Cloud Accounting is essentially your accounting software stored and accessed from an online server which allows upgrading of software, tax tables for payroll, also data backups are managed remotely and automatically by the software provider. This is a great time saver for any small business owner that has spent hours loading and updating software.

All available products have similar basic features, choosing what’s right will depend on your business needs: Xero – Inventory – Live bank feeds – Cash flow reporting – Multiple currencies Intuit Quickbooks Online – Multiple users – Import data from PC data file – Basic inventory MYOB Essentials – MYOB Essentials is well supported with live support included in the subscription – It has real live feeds from bank accounts – LiveAccounts looks quite close to MYOB.

If you are currently running a PC version of your accounting software, and are satisfied with it, you may choose to simply migrate this to the cloud-based version. If you are looking to move to a program that better suits your particular business needs it would be beneficial to talk to your Woods Accounting & Tax Services accountant about which product would best suit your business today and into the future. Like most PC based accounting programs, cloud accounting programs have add-on modules and therefore you will need to choose the best option for your business, i.e. inventory, job costing, multiple credit terms.

Cloud based accounting programs are charged on an annual subscription basis and you may opt to pay this charge monthly. This is a huge cost saving over buying the software and licences.

Moving to the cloud does not increase data risk any more than you are currently exposed to. In fact, the cloud is more secure as it uses a secure single purpose platform as opposed to your in-house server where it shares space with more security vulnerable programs such as emails.

In short, no. If you are already using an accounting program on your computer, you won’t see a huge difference in going to the cloud. The newer version may have some additional features that you are not familiar with, but there is support and training readily available on the suppliers’ website – and within the cloud program – to assist you when required.

Cloud accounting is a better system that will make managing your business less time consuming. At Woods Accounting & Tax Services, we get a lot of calls from businesses wishing to move to cloud accounting. The move is generally prompted by the business owner, not the bookkeeper or accountant. The reason for this is that the business owner wants and needs to have access to accurate up to date financial information and by storing it in the cloud they have that confidence.

The cloud alleviates the need for businesses to store and manage data on internal servers reduces expenditure and maintenance on expensive computer hardware; as the file is in the cloud, it minimises errors at BAS and tax time; business owners are able to communicate in real time with their accountant regarding financial issues as the accountant has access to the cloud file, no more sending the file weekly/monthly; You have access to your financial information anywhere in the world.