Why are more business owners converting to cloud based accounting?
As a member of the BSST team, I see clients using numerous different accounting software and techniques for keeping track of all of their income and expenses. One of the most common trends I’ve seen across my clients over the last year is moving their accounting software to a to cloud based, online accounting software.
One of the biggest advantages to switching to a cloud based accounting software is the accessibly of financial and accounting information. In most online based accounting software’s, any financial data is stored in a cloud that is accessible through any web browser. No matter where you’re at in the world, you can access your financials. This means 24 hours a day, 7 days a week. This becomes very handy for those business owners who are on the road a lot or simply don’t have access to their computer with their accounting software on it on a regular basis.
One may think that this provides an opportunity for a security threat; while it turns out that cloud based accounting software may prove to be more secure than software stored on your computer’s hard drive. There are numerous ways hackers can get into your computer whether it’s through emails or pops. If something like this would happen, they would have access to any accounting software and data saved on your hard drive that may include confidential information. However, with a cloud based accounting, nothing is stored on the computer or its hard drive. All data is stored in data centers that have multiple levels of security for protection. Typically these data centers are more secure than the small business owner’s offices.
Not only do these data centers allow for a level of security for cloud based accounting, but they also prevent the chance of losing data. Backups occur without having to initiate them. There’s no need to take the time to save an extra copy of your accounting files in a different location and there’s no need to worry about your computer crashing and losing all of your financial data.
Cloud based accounting also allows for real time accounting. As soon as an update is made, it is reflected in the financials. There’s no need to submit batches or to send any changes. No matter the time or place, the financials will be as current as possible. This becomes very beneficial when a CPA may be reviewing or making changes to your file for the official financials or for the tax return. They can make them directly in the file, rather than getting an accountant’s copy and uploading or the accountant sending journal entries that need made.
Not only does cloud based accounting save time in doing backups and getting accountant’s changes, but there is also no need to do software updates. Updates are automatic and require no time from the bookkeeper or accountant, saving business’s time and money.
The price for cloud-based accounting has a different pricing structure than most desktop accounting software, which proves to be significantly cheaper than desktop versions. Most online accounting software’s charge a monthly fee, which varies depending on the level of accounting needs. There are no large startup fees or yearly software update fees. There is also no long-term commitment, which seems to be very appealing to many small business owners.
The clients I have that have switched to cloud based accounting they find they are saving a lot of money, and love the accessibility and up to date financials available at their fingertips. I can sit in the office and work on a client’s bookkeeping, and they can see the updates as I make them. It’s accessible, convenient, and reliable.
If you are considering an online-based accounting software and have more questions, we can help.