Why the Cloud’s a Perfect Match for Accounting
The number of services and applications found in the cloud is growing every day. From organizational software to systems improving collaborative projects, there’s a cloud-based service that outsources nearly every need. The most daring entrepreneurs are excited to incorporate the cloud in all facets of their business. Those who are more cautious may want to assimilate the cloud slowly, service by service. The question for these business owners then becomes which service they should try first. If you aren’t sure where to first integrate the cloud into your business, consider the benefits of virtual accounting. Bookkeeping and the cloud make a natural pair that can help small business owners gain a better overview of their companies.
It goes about doing this by transporting financial data from a local server to a network of servers accessed by the Internet. Traditional accounting software is stored on a single desktop. This desktop is the only master copy of your finances. Though you can share it with authorized users (typically via email or a USB stick), you must manually add any changes made to this information to the master copy.
This means most of your financial tasks take place in front of this desktop, wherever it may be located. Whether it’s at your home office or in the back of your shop, this computer is your gateway to your finances. Without it, you can’t review or update your information.
This opens your books to unique dangers. Anything that threatens your computer also threatens your data. Theft, viruses, and natural disasters can wipe out your records. Human error as you update your accounts can also complicate your bookkeeping.
The cloud removes your financial dependence on a single device by moving storage from a singular server (like a desktop hard drive) to a network of remote servers. It doesn’t matter if you aren’t anywhere near these servers physically. The cloud and all that it stores are accessible via the Internet. The cloud accounting software of your choice (and there are many to choose from, even if you stick to those top-performing programs from this list) acts as a doorway to your data. You can download this software to any web-enabled device and open this door anytime you have access to Wi-Fi. E.g., Cloud based QuickBooks hosted on a Windows 10 Virtual Desktop.
In practice, this means you can review payment information when in a meeting with a vendor, or you can convert estimates into invoices while on a weekend getaway. It also lets you authorize other users to access and modify this information in real-time. When trusted employees can review and update important documents without the use of emails or USBs, you can eliminate many of the errors that occur when manually adding these changes to the master copy of traditional software. The cloud automatically updates these additions and makes backups.
If a device is lost, broken, or stolen, your bookkeeping is safe. Since none of the data is stored on the device itself, the information is safely kept on the cloud. Only those authorized users can access the software’s app.
For these reasons, small business owners are embracing the cloud at a faster rate than owners of larger enterprises. Gartner analysts predicted cloud-based services had the potential to grow to a $244 billion industry last year. Part of this exponential growth relied on the small business community. A recent survey reveals two-thirds of small business owners have already adopted cloud services into their daily operations. Another 78 percent of respondents said they were in the market of purchasing additional cloud services in the next 2–3 years.
Despite its popularity within the small business community, the cloud isn’t always a perfect solution for every enterprise. Some businesses aren’t technically ready to make the transition, even if their owners are. If you aren’t sure where your business stands, you need to do your research, so you can make an informed choice. Fortunately for busy entrepreneurs with little time to spare, this isn’t a task you need to undertake on your own.
CPAs of a virtual accounting firm like Adian PC can share their knowledge of software and help determine if your business is ready to adopt the cloud. If you are, they can coach you through the transition. Their extensive experience with cloud-based accounting tech lets them train you on any app. They can also offer support throughout the year — and especially during tax time — to optimize this software as your business grows. You can schedule a meeting with one of the firm’s talented CPAs by visiting Adianpc.ca and connecting with their office at any time.
The cloud promises to make positive changes within your business, regardless of how you integrate it. But it can have the most profound impact on your success should you adopt cloud-based accounting software. Speak with a professional to see if it’s something your company can support. It has the potential to revolutionize the way you spend your time bookkeeping.