You must have heard of “the cloud” right? It’s been out there for a while now. You’re probably already storing some of your personal data out there, in the cloud.
But do you know what it is?
Usually, when we think about “the cloud” or “the internet” we think about information that is stored somewhere up there, in the clouds.
The thought of storing all your business accounting information in such a transitory place, might be quite unsettling for you.
Let’s try to understand what cloud accounting is and what constitutes the benefits of having one for your business accounting…
Cloud accounting in a nutshell
Cloud accounting is a platform where you can store all your business data and software. You can access it online anytime, anywhere and from any device.
All the information is stored on a particular server. It can be a Google, AWS (Amazon Web Services) or a Microsoft server.
The traditional way of doing accounting was getting an accounting package. You kept it somewhere in your office, under your desk maybe. That box was the black box of your business accounting.
It must have felt good having all the accounting information under your desk, information only you could have access to.
Cloud accounting offers you the opportunity to have your entire accounting database accessible to more than one person at a particular time.
Now that may sound scary to you, but here’s how you can benefit from this…
The benefits of cloud accounting
You may wonder what the difference is between having all your accounting information in a box under your desk or having it in the cloud?
That’s a great question! Let’s take a look at some of ups and downs of switching up to cloud accounting.
Some of you may have a hard time getting used to technology’s lack of visual proof, with all things wireless, hands-free and in the cloud.
When you’ve had that black box under your desk for 15 years, I can understand how it might be challenging to imagine all your business information safely stored in one place you cannot see.
The truth is, you’ve probably gotta have a little bit of faith.
One of the greatest benefits of cloud accounting is your accountant can have access to your data at the same time you do. The old school way of getting a file, sending it to your accountant and waiting for their feedback now has an efficient alternative.
With cloud accounting, you have equal opportunity to make the same changes as your accountant has. It’s faster and much more convenient for your business.
Having all your accounting data in the cloud means you can constantly be connected to your business data.
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How secure is the cloud?
Since I am no security expert I am not going to tell you it is 100% secure. As with every piece of technology, cloud accounting has its own share of risks.
Being a business owner, you can assess whether the risks involved are worth it for you and your business.
Go ahead and do an extensive research of your own, make sure you understand the benefits and the risks involved. At the end of your research it will all come down to a simple question: Will the benefits outweigh the risks and costs?
It’s a matter of personal choice.
Is cloud accounting a good idea for your business?
The leading software providers say that cloud accounting software can increase a business’ success by 88%. The reason behind this increase is connection.
Honestly, I don’t think success necessarily has as much to do with advanced technology as it does with simply changing your habits.
Make it a habit to connect anywhere, anytime, all the time.
You can connect while sitting in front of the TV. You’ve got your laptop or iPad. You can easily be coding your bank statements from your couch, every single day.
The good thing that results from a constant connection with your business is that you get to know it– really well.
You know the numbers, because you can watch them. You can ask questions based on real-time data because you’re there. You can take a look at what your spending habits are and you can identify a potential need for change.
Being connected with your business means being engaged with it.
And if technology can provide that, that’s fantastic!
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The accounting specialists at Shuriken Consulting can assist you in making the right decisions when it comes to your business. Whether you have questions about accounting software or company set up, our experts are happy to help. Get in touch now.