Cloud accounting software does what all accounting software does. Though the accounting functions remain the same, cloud software is an innovative IT solution that is a step up (or three) from traditional accounting software. The difference comes in with set up, set up costs, ease of access, user-friendliness and a multilayered benefit to business.
The main difference between cloud accounting software and traditional accounting packages are the way they are set up.
Setting up cloud accounting software:
A traditional accounting package would be installed on your computer. It would also have to have been installed on each and every computer for each person that needed to use it. Data would be shared via mechanical means (read: on a stick), or later, by office computer integration that used the office internet network.
Cloud accounting does not require set up on each individual computer. There is one simple ‘set up’, on a remote server. This means the software can be accessed from all computers in the office, and also remotely. It also means you can access it from anywhere, on any device.
The benefits of cloud accounting software for your business:
- Financial information is updated automatically. For example: Your bookkeeper adds some figures and five minutes later your accountant generates a report. The new figures are included automatically, without the account having to check with the bookkeeper that the figures are up to date. Your accountant could even be on the other side of the world from your bookkeeper.
- Financial reporting is thus ‘real-time’.
- There is far less potential for errors creeping in.
- International transactions and currency exchange are handled automatically – in real time!
- It’s also more secure. Despite being accessible from anywhere, security protocols ensure that data is secure. However, the real security comes in with every single entry and report being visible to accountants, managers and business owners.
Cloud accounting makes data entry, report generation, controls and financial management faster, more accurate and more user-friendly than ever.
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With over 23 years of unwavering expertise, I am a seasoned Chartered Accountant committed to financial excellence. My journey in the realm of finance has been marked by astute strategic insights, meticulous attention to detail, and an unyielding dedication to precision. Over the years, I’ve navigated the complexities of financial landscapes, providing invaluable counsel to diverse clients. My proficiency extends across auditing, taxation, and financial management, coupled with a profound understanding of regulatory frameworks. As a registered professional, I have consistently upheld the highest standards of integrity and ethics, earning a reputation as a trusted advisor in the dynamic world of finance.