Five Benefits Of Cloud Accounting Software

Before cloud accounting software, the only choice for a business that wanted to use a computerised accounting package was to buy a piece of software and install it on a PC.

These packages did a good job with the bookkeeping, but there were limitations.One example is when your accountant requested a backup to do the year-end accounts. Firstly emailing a 10MB backup is not always straight-forward, so often work around solutions had to be found, like sending it in the post on a memory stick. And then there is the problem of installing the back-up on another computer. Corrupted data messages are common, or finding the two packages were different versions of the same thing, so the data couldn’t be read.

Of course by the time the data is received it is always out of Cloud Accounting Singapore, making it difficult for your accountant to give you advice that is relevant right now.

So what is The Cloud? And what is the benefit of it for both you and your accountant?

Wikipedia defines “Cloud Computing” as:

“a synonym for distributed computing over a network and means the ability to run a program on many connected computers at the same time.”

It is like an electricity grid but through the internet, so shared resources and economies of scale. What does this mean for your business?

  1. With cloud accounting software you can spread the cost of the software by making payments by monthly subscription instead of one lump sum.
  2. All the upgrades for cloud accounting software are carried out by the supplier at no extra cost, so you are always on the latest version.
  3. You can access cloud accounting software anywhere that has an internet connection, so no need to use a particular computer or be stuck in the office.
  4. As the name suggests, all the data is stored securely in “the cloud” which we now know means on the supplier’s bank of servers, continually backed up, so you never have to worry again about using up your own hard-drive or taking regular backups.
  5. Best of all, with cloud accounting software, your accountant can share your data, so we can help you if you are stuck on recording certain transactions in your accounts, like the purchase of a new laptop. We can post our year-end journals directly, so your data is always up to date, but more importantly we can be more help to you. For example if you would like us to prepare some management accounts for you, and even help you with key decisions in your business, the sky is the limit with cloud accounting software!

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