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Cloud Accounting: What is it? And what are the benefits?

What is cloud accounting?

When people talk about ‘cloud accounting’, they are actually referring to ‘cloud based’ accounting software.

Before ‘the cloud’ most accounting software was desktop based. Users would purchase accounting software and install it onto their computer in order to keep their financial records up to date. Cloud accounting (or online accounting) moves the application away from your computers desktop and onto ‘the cloud’.

Cloud accounting provides all of the same functionality as desktop accounting, but with several added benefits.

What are the benefits of cloud accounting?

Traditional desktop accounting has a number of drawbacks, including; limited access to your records, the need for seemingly constant software updates and the ongoing costs of backing up your financial information. Cloud accounting, however, removes many of these drawbacks whist providing additional functionality.

Read on as we discuss some of the key areas where cloud accounting can add real value to your business.

Access your accounts anywhere and at any time

Access your key financial information from any location where there is internet access. Cloud accounting removes the need to work from one main computer – access  your accounts from home, during your daily commute or outside of office hours. Login from any device at anytime.

Access real-time data

The flexibility provided by cloud accounting means that it’s much easier to keep your financial information up to date. Instead of looking at historical reports, you will have access to real-time reporting – vital for future planning.

Save time with live bank feeds

Most cloud accounting software provide live feeds to your bank accounts. Instead of manually entering individual bank statements into your accounting software, a live feed will pull your bank data straight into your accounts, saving you time and providing accurate data in real-time.

Useful integrations

Many cloud accounting platforms offer integrations with useful third-party apps and tools; providing practical solutions to cash flow forecasting, online invoicing or project management, all in one place.

Access to latest software versions

Gone are the days of expensive software upgrades and security fixes. Whenever and wherever you login into your cloud accounting software, you will always have access to the latest version.

Secure data sharing

With cloud accounting software you can easily grant key stakeholders secure access to your financial information; providing a faster, more secure data sharing solution than traditional desktop accounting.

Cloud accounting software – what are my options?

At PW John and Co Accountants we understand that many businesses have their own preferences when it comes to accounting software. Ultimately, the cloud accounting software that’s right for you will come down to your businesses size and accounting needs.

Our experienced team are proficient in all major accounting software including Sage, Intuit Quickbooks, Xero and Kashflow.

Contact us today to discuss your requirements in more detail.