In our last post we discussed saving your supporting tax documents to the cloud. You may have been wondering, “What is the cloud?” In this post, I would like to take some time to discuss cloud based accounting and how it can help your small business.
To sum it up, the cloud is the Internet. Information stored in the cloud is stored on servers on the Internet instead of your computer. You are able to access any information you have stored on the cloud from any computer with an Internet connection. The cloud and accounting software is a match made in bookkeeper heaven!
There are many benefits to cloud based accounting and we’ll discuss the main ones today. With cloud based accounting software, business owners are able to have an overview of their financial position in real-time. This means as soon as information is input into the software, financial reports can be run that are the most up to date. This is a powerful use of information! One of the reasons the cloud is so up to date is because it has the ability for multiple users to all work at once. Depending on the software, multiple users with different access abilities are all allowed to access the software simultaneously. For security purposes, different users will have different access levels. Some users may only be able to run reports, and other users can just access the time sheets, while the manager and bookkeeper may have full access.
Another benefit of the cloud is that updates are run automatically. You no longer have to download and install frequent updates. Since everything is run online, all your data is automatically backed up. This eliminates USB drives and emailing files back and forth! In the event of a disaster (fire, flood, earthquake) all your information would be secure. The cloud is a flexible tool for performing business. Business owners are able to work from home or on the go with access to the same up-to-date information.
For business owners and their bookkeepers, the cloud is a more streamlined way of working together. With an Internet connection, the bookkeeper will have access to the client’s books. Questions regarding transactions can be sent directly through the accounting software. Bank/credit card transactions can be downloaded from the bank directly and reconciliations performed much more efficiently. Bookkeepers are able to apply Internet payments to invoices as well as apply disbursements to outstanding bills.
The cloud is cost efficient for business owners with an array of add-ons to facilitate transactions as the business grows. In addition, the software companies ensure the security and privacy of data in the cloud is strong.
Cloud based accounting has really improved the way bookkeepers and business owners work together. If you are interested in more information, contact Ilderton Bookkeeping, LLC to inquire about discounts on cloud based QuickBooks software to fit your businesses needs.