Should I be accounting in the cloud?
What is bookkeeping in the cloud?
Essentially, bookkeeping in the cloud means that your accounts are stored on remote servers rather than on a desktop or external hard drive. The software works similarly to regular accounting packages and performs many of the same functions, but is more accessible – you, your employees, bookkeeper and accountant can all access your accounts from anywhere providing there is internet access. Another key difference is that they generally work on a subscription basis. So, rather than purchasing accounting software outright, you pay monthly for the level of service you require.
Is cloud bookkeeping secure?
As with anything on the internet, security is important, and there are always risks. But, if you use online banking, you are already making use of, and trusting, the cloud to manage your finances. Using cloud bookkeeping software is not that different; all packages have security measures in place to protect your data. Therefore, assuming you use them wisely, they are secure and safe to use. Just keep passwords and log-in details safe, restrict access to only those who need it and don’t leave your computer and software logged in when you’re not around.
In fact, they are arguably more secure than other bookkeeping packages if you consider that your data are stored externally and not on your computer or hard drive. Therefore, if you lose your computer or it gets stolen, your data are safe and inaccessible unless someone has your log-in details. Furthermore, the shared access means sensitive documents no longer need to be sent over email or transferred between people using hard drives or USB sticks.
Would I benefit from cloud bookkeeping?
Whilst cloud accounting software may not be right for everyone, there is a good chance that if you run your own company, you would benefit from moving your finances into the cloud, and here are a few reasons why.
1. It will save you time
This is especially true if you currently do all your bookkeeping manually using, for example, Microsoft Excel. Cloud bookkeeping software automates many tasks that you currently spend hours doing by hand, such as data entry, tracking payments and producing invoices. The software can integrate with your bank account and other programs you use, making managing your finances seamless and more efficient.
2. You can access your accounts from anywhere
Acess is one of the primary advantages of cloud bookkeeping software. You can access your accounts whenever and wherever you want, providing you have a device with internet access. And, monitoring your transactions in real-time gives you greater control over your cash flow.
3. You won’t lose all your data
If you store all your financial data on your computer currently, you need to remember to back-up regularly. Otherwise, you risk losing everything. With cloud bookkeeping software, however, all your data are automatically backed up on to secure servers, so safe from loss. The software also updates automatically, so you always have the latest version.
4.You’ll build better relationships with clients
Cloud bookkeeping software gives you greater control over your accounts and makes sending and paying invoices easier to do. Furthermore, everything is organised and stored in one place. Therefore, should a client come to you with a query or complaint, you can recall information quickly without having to search through old emails or piles of paper – and it doesn’t matter if you’re not in the office!
5. You’ll make your accountant’s life easier
Or your bookkeepers… The added organisation and fact that your accounts are always kept up to date means your year-end accounts and VAT returns easier and quicker to complete. In money terms, the less time your accountant takes to file your accounts, the better!
Which software is for me?
QuickBooks, Xero, FreeAgent… With so much choice, it can be hard to work out which software is best for you and your company. If you’re need help deciding, we can help. Rebus Bookkeeping works with a range of cloud bookkeeping software and can help you at all stages of the process, from deciding which software is best for you, to the set-up and management of your accounts. Save time, move your accounts to the cloud and contact Rebus Bookkeeping today!