Cloud Accounting – What’s it all about?

Cloud Accounting is one of the latest ‘buzz phrases’ in the financial software world but what does it actually mean? In practical terms, the cloud is just one big mass of data made up of individual databases administered by organisations or companies held on secure servers. Think Amazon, one of the world’s largest cloud applications.

In Cloud Accounting, you have your very own financial database in the cloud, so instead of logging into the accounts program on your PC you log in instead via a web page. From then on, you process your transactions and reports in exactly the same way as if you held the program locally on your PC or server.

The big advantages with cloud accounting are that you don’t have software loaded onto your systems so buying a new PC or laptop is not the problem it once was, all you need is a login and an internet connection, you can also often access your accounts using an iPad, tablet or smart phone. Software upgrades are automatic and at no extra cost to the user. Backups become a thing of the past as the host company retain all of your records for you.

Bookkeepers are beginning to embrace on-line accounting with some being certified by the software companies to ensure a high standard of service is provided.

So, is my financial data safe? In the main yes, in terms of being hacked into you are probably more likely to be struck by lightning or eaten by a shark than you are for your business data to be seen by prying eyes, a vast majority of hacking incidents happen to large multinational corporations. After all, in trusting your bank to hold your financial details online you are already contributing to the ever-increasing level of data held in the cloud.

The links below will take you to the websites of the three main players.

http://www.myob.com.au/

http://www.quickbooks.intuit.com/

https://www.xero.com/au/

If you’d like to find out how Cloud Accounting could work for you and your business, contact Sovereign Bookkeeping Solutions SA on admin@sovereignbookkeeping.com.au