Cloud accounting is how many of today’s businesses manage their finances, but there are some business owners who still aren’t too sure 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. Either way, you’re likely to have some questions around it.
We’ve addressed some of the most frequently asked questions about cloud accounting for you here. Don’t see your question below? Just ask us here.
What is cloud accounting?
Put simply, cloud accounting is managing your finances online. Rather than having your data stored locally on your computer, it’s stored on secure servers and delivered to you over the Internet.
Chances are, you’re already managing many details of your life in the cloud. Do you have a Facebook account? Do you own a smartphone? Do you access your personal banking information online? Then you’re already living in the cloud.
Isn’t cloud accounting just another way to back up important data?
Nope. Cloud accounting offers much more than just data storage — like flexibility, security, efficiency, and anytime access to real-time financial data that will impact decision-making for your business, among other things.
What are the benefits of cloud accounting?
Well, there are many benefits of cloud accounting, but here are just a few:
Convenience – With cloud accounting, you can access your financial data anytime, anywhere – as long as you have access to the Internet. Approve invoices 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 data, and you’ll know you’re all viewing the same information at any given time.
Greater efficiency – Because many of your processes will be automated with cloud accounting, your business can run more smoothly and efficiently. This means you can focus more on the fun aspects of having your own business, like how you should decorate your office. (Pool table — yes or no?)
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, thanks to 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?
One of the reasons why cloud accounting is such a popular option for so many startups and small businesses is there are fewer overall costs involved than with traditional accounting methods. There’s no expensive software to install and maintain – plus there’s less of a need to employ an in-house accounting department.
Also, because of the greater efficiencies that cloud accounting provides, your business is highly likely to have less financial churn-and-burn and will save significantly more money over time. That means you could go right ahead and get that pool table.
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: