Cloud accounting is a new system of accounting which allows your data to be stored at a central data base “the cloud”.
It’s just the way accounting is going.
Your data can be accessed by you from anywhere in the world from any mobile device or computer and it is a heck of a lot safer than having an in house server running your program and business.
We have clients who lose their records through computer malfunction. Clients whose businesses are held to ransom when their systems are hacked and locked to their access.
It’s a good way to go and we are up to speed with all the developments and training.
There are a number of distinct advantages.
- It enables you to access your records from any remote terminal which means you can work on your books “live” whether at home or even on holidays in another country.
- You can allow your bookkeeper or accountant access to your system so that you don’t need to email them cumbersome files, or give them disks or USBs.
- Your accountant can access your records at the same time as you from different locations, so if you have a problem they can see what you see and solve the problem.
- Normally you won’t need to purchase software and install it on your computer and your records will be automatically updated to the most recent version.
- Your data will be sitting in a central data storage so it will remove the need for you to back up.
- Security should be enhanced and you should run less risk of your data being hacked or held to ransom as has happened in Mackay, the Gold Coast and other centres throughout Australia.
- If your computer breaks down you do not lose your data as it is automatically saved in the data storage and can easily be accessed by another computer.
- Your accountant can spend more time giving advice on improving your business, cashflow etc. which is a better use of your money than having the accountant doing basic bookwork to correct the financials.
Are there draw backs? Certainly.
For a start you need to see if using a cloud based system is appropriate for your business. That’s where talking to your accountant at FORSYTHS is the first step you need to make. It may well be that the system you are using is the system that is right for your business.
Also, some systems offer accountants and bookkeepers incentives to push their clients into a particular system. That should not be a reason for giving you advice on something as important as your business operating systems.
There are a variety of systems on offer, but only one or two really meet the primary need of being user friendly and providing useful reports.
At FORSYTHS we have been testing the various programs and feel we can now offer a general review of the reasons for using the systems and also offer training through the next six months to enable you to fully understand the operations of the new systems.
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