Cloud accounting. What is it? Your accountant may have told you that you should be using the cloud, but what does it mean? And should you be using it?
Simply put, it’s software that isn’t stored on your computer, but is stored remotely. To access your data, you have to log-on to the software through the internet. It allows all parties to access the same data at the same time, as it is held centrally. It also allows access from any device, anywhere, mobile, laptop, UK, France, Australia you name it. It’s the same as when you access your bank account online.
So this is good news for accounting?
Real-time financial reporting means that you as a business owner and your accountant are able to access your accounting data at any time, at the same time even, to get the most accurate picture.
It’s an incredibly safe way of storing data, as it doesn’t leave any trace on a computer, so if you suffer a break in, or your laptop suffers a mechanical failure, your data is still safe and secure as it’s kept remotely ‘in the cloud’. You don’t need to use USB drives etc. to transport data between people. You can also control the level of access people have to your data.
You don’t have to install software, don’t need to upgrade, won’t have any associated costs with maintenance, no back-ups needed, all gone.
Accounting software such as Xero is incredibly clever in that it helps to calculate figures automatically, thereby taking some of the need for manual input out of the equation. Good news for everyone, as it helps to reduce the chance of errors.
But what else does cloud accounting software do?
Invoicing. Xero is a great one for this, it helps you to manage your invoicing, creating templates, setting up regular invoices, even sending out reminders when invoices are overdue. Amazing or what?
Some also have the facility to collect payments, sort of like a Direct Debit. Go Cardless is one such example. You can set up regular payments, so if you have monthly retainer clients, then they can have the payment taken automatically, and you receive it automatically. No more having to chase for late payments. Less hassle for you and your client.
How about collecting receipts? Yep, it can do that too. Just take a picture or scan your receipts, then it stores them all remotely. No need for plastic bags full of faded receipts!
You can also organise your software to help you with payroll, inventory as well as general cash flow. There are also some that can help with tracking time, perfect for logging hours worked, billable hours etc.
Essentially, the possibilities are endless, if you need it for your business there’s probably some accounting software that will do it! We have a number of options for you at Blue Rocket, as a client you will automatically gain access to them, we will advise you of the best option for your needs.
So you can see how the cloud can take some of the painful, time consuming, mind numbing accounting tasks and make them almost a pleasure! Saving time saves money, which is music to an accountant’s ears!
If you have any questions about cloud software, and how it could work in your business, then give us a call, pop in, or find us on Facebook, and we’re more than happy to talk through your options with you.