I get asked so many times from clients about what is cloud accounting and how does it work. It’s time to understand what is this technology all about.
Cloud accounting is nothing new. When we think about the cloud on the internet, we think about something being stored up there somewhere in the ether. A place that you just can’t see or know where it is exactly.
But honestly, the information is stored on a particular server. It might not be your server. It might be a Google server. It might be a AWS server. It might be a Microsoft server.
It changes the way that we think about business. I have plenty of clients who started off using their accounting packages over 15-20 years ago and it’s sitting under their desk, in a box. They can keep it and they can feel nice about it.
But cloud accounting is not just having that box underneath your desk. It’s having it somewhere else, making it accessible to more than one person at a particular time.
The basics of cloud accounting
Are you wondering how does cloud accounting work? The difference between having your box downstairs and having it upstairs somewhere that you can’t visually see… Well, you’re probably going to have a bit of faith.
So, instead of the old-school methods, grabbing the box, getting a file, sending it to the accountants, which they may or may not edit. Now, you’ve both got equal opportunity to access and make changes happen in an easy and quick way.
The main benefit of cloud accounting at month-end means that your accountant has access to your data at the same time as you do. Your entire team can access valuable data anywhere, anytime and from any device.
Having your data in the cloud, being connected is definitely the way to be.
Is cloud storage safe?
Clients usually ask me about security in the cloud. Now, look I’m not a security expert and I’m not going to tell you it’s 100% secure.
Those sorts of things you have to risk assess for yourself. You have to understand there are benefits from having it with MYOB, from having it with Xero, from having it with Saasu.
A lot of people are scared that their information is up there and other people can go and get access to it. So, go and make sure you make the right inquiries and be really comfortable, instead of getting pushed into it.
You should research what great options are there for you and if it’s worth moving into the cloud.
There are always benefits and risks. It’s a personal choice in the end.
What are the benefits of cloud accounting?
Do the benefits outweigh the costs?
First of all, you need to research all the possibilities. All the available services. Then, check what do you effectively need.
I went to a couple of conferences at the leading software providers over the last three months. And it was excellent. I really had a great time in all of them.
But one thing that kept coming home was that you’re 88% more luckily to succeed in your business if you’re connected.
It’s a matter of automation. With cloud accounting, everything becomes more accessible, more practical, less time-consuming.
Let technology assist you in managing your business and keeping it organised. The service already exists, so why wouldn’t you want to take advantage of what it has to offer?
It’s not about technology…
Well honestly, it’s not about the technology. It’s actually about you changing your habits.
Switching technologies is not that big a deal but changing habits is something that can take a long time to happen effectively.
If you’re connected at home, you’re watching your favourite TV program, you’ve got your laptop or iPad and you’re actually checking your bank statements every single day.
You know your numbers, you’re watching it, you’re asking questions and then you’re looking at why you’re spending what you’re spending.
So, when I say connected, I don’t think it’s actually about being connected. I think it’s about being engaged in your business.
And if connectivity and technology provide that. It’s fantastic.
When it comes to cloud accounting, you should first start changing your habits in order to stay connected and engaged. To be in business. Every time. All the time.
As such, let me assist you with this change. Together, we can define which type of cloud accounting can benefit your business.