One of the
most exciting changes in the accounting industry is cloud accounting. The concept is easy to grasp: cloud accounting simply puts your accounting
system in a private space online so that it is fully accessible to you via a
browser or a secure remote connection.
Two Ways to Be in the Clouds
There are
primarily two ways to have your accounting system in the cloud. First, it can be “hosted.” This means that the current software you are
using on your desktop, such as QuickBooks or Sage, does not change. Neither does your company file.
The only
thing you do differently once it’s set up is click a different icon to start
the software. Once you log in, most
everything else is the same. There are a
couple of differences in printer access, Microsoft Excel® access, and some of
the other interfaces, but it’s essentially the same experience.
So if it’s
the same, why would you want to move to the cloud? Because it completely eliminates the passing
back and forth of the file among you, your CPA, your bookkeeper, and anyone
else that needs to update or access your accounting file. No more restores. No more DropBox or YouSendIt downloads.
Hosting saves
a ton of time because the people you grant access to can login to your file
from anywhere.
The second
way to have your accounting system in the clouds is to switch to an online
accounting system. In industry jargon,
this is called SaaS, which stands for Software as a Service. Examples of online accounting systems include
QuickBooks Online, Xero, Wave, and Kashoo.
These systems have fewer features and will only be right for a client
with a need for a simpler accounting system.
When you
switch from desktop accounting software to SaaS, it will likely require
conversion, setup, and training. It’s a
major change.
Benefits
There are many benefits to moving to the cloud; here are just a few of the more common ones:
· Anywhere, anytime access
to your accounting system. Companies
with multiple locations will benefit significantly from a hosted solution. No more worrying about
who has what version and whether the changes the accountant made were updated
or applied. There is one central file,
and multiple people can be accessing it at the same time as long as you have
the right number of user licenses. No more software updates
that you have to apply yourself or wait for.
This is done by the hosting provider or the SaaS. Tighter security for
your data. The data centers typically
have multiple state-of-the-art data security controls and must pass a rigid
audit, which is far more protection than any small business can afford to
provide for their own data. Automatic offsite backup
for disaster recovery purposes.
Concerns
Clients’ two
major concerns include security, which is covered above, and costs. When it comes to costs, the most important
thing to look at is return on investment.
Will the time you save be of greater value to you than the costs of
hosting or moving to a SaaS? That answer
varies for each client.
Curious About the Cloud?
If we’ve
piqued your curiosity about cloud accounting, please feel free to reach out so
we can continue the conversation.
