Cloud accounting is how many of today’s businesses manage their finances. It’s secure, efficient, and easy to access from just about anywhere.
If you’re new to the world of cloud accounting, you’re likely to have some questions about it. Maybe you have a startup and you’re exploring your accounting options. Or perhaps you’ve had your business for a while, and you’re considering making the move from traditional accounting methods to the cloud.
We’ve addressed some of the most frequently asked questions about the cloud accounting for you here. Don’t see your question below? Just ask us in the comments.
What is cloud accounting?
Put simply, cloud accounting is accounting software that is hosted online in the “cloud.” Rather than having your data stored locally on your desktop computer, it’s stored on secure remote servers and delivered to you over the Internet.
Chances are, you’re already managing many details of your life in the cloud. For example, if you manage your personal bank account online, then you’re already living in the cloud.
What are the benefits of cloud accounting?
Well, there are many benefits of cloud accounting solutions for your business, but here are just a few:
Convenience – With cloud accounting software like Sage Intacct or QuickBooks Online, you can access your financial data anytime, anywhere – as long as you have access to the Internet. Approve invoices from a mobile device while standing in line at the airport. Pull real-time financial reports in a board meeting. Review your business expenses while sitting at your kid’s soccer game (just kidding – you would never do that, but you could).
Clear financial picture – You don’t have to guess about your company’s financials with cloud accounting. You’ll always know in real-time how much money is coming in or going out of your business. You, your colleagues, or your accountant can easily manage your company’s financial information, and you’ll know you’re all viewing the same accounting data at any given time.
Easier collaboration – Working with cloud accounting software is great if you’re working with a virtual accountant or if any of your team members are remote. You, your entire team, and your accountant or bookkeeper can all rest assured that you’re working with the same financial information when it’s hosted in the cloud.
Greater efficiency – Because many of your processes will be automated with cloud accounting, your business can run more smoothly and efficiently. This can help you to better manage your time and money, while also improving your overall cash flow.
Is cloud accounting secure?
In short, yes. Considering cloud computing is expected to grow at more than six times the rate of IT spending from 2015 through 2020, security is not something the industry takes lightly.
Understandably, data security is a major concern for businesses, and this is probably the number one reason why some business owners hesitate about cloud accounting. But you can rest assured that your precious financial data is totally secure in the cloud. This is because of the high-grade data encryption protocols that cloud service providers have in place (which is basically a fancy way of saying your stuff isn’t going anywhere).
Is cloud accounting expensive?
Cloud accounting involves lower costs than traditional accounting methods. That’s a major reason why it’s such a popular option for so many startups and small businesses. There’s no expensive software to install and maintain – plus there’s less of a need to employ an in-house accounting department, which can involve a lot of overhead costs.
Also, cloud accounting helps businesses to operate more efficiently. This means your business is much less likely to have financial churn-and-burn and will save significantly more money over time.
Still have questions?
Ask away in the comments or reach out and talk to one of us at FusePhase. We know way more about cloud accounting than you’re likely to ever care about.
You might also enjoy this one-minute video introduction to some of the key benefits that cloud accounting can offer you and your business: