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Keeping up with the Times: Cloud Accounting

Keeping up with the Times: Cloud Accounting

CPAs need to keep up with the times if they are to retain their customers. This is especially important if you want to attract younger generation clients to your firm. In this context, it has become increasingly necessary to keep updated with new tools and techniques that are being introduced to ease accounting and financial management processes.  Cloud accounting is one such new concept that is creating a buzz in the accounting arena.    

 

Cloud accounting defined

 

If you are used to doing all your accounting using your desktop, cloud accounting should not be a complex concept for you to grasp. In fact, you will get the same functionalities with your cloud accounting application, only they run on remote servers instead of your home or office machine. You access these applications with your web browser and use them  just like you would use your desktop accounting application.

 

Dual Format Accounting Apps

 

Cloud accounting apps come in two formats. Hosted solutions are those that let you continue using your existing data but you access the accounting application which is running on a  server in a  remote location. SaaS (Software as Service) format accounting systems allow you to access the accounting software as well as your data from the providerís servers where they are stored.

 

Should you Switch to Cloud Accounting?

 

An increasing number of CPAs are switching to cloud accounting processes because of the many benefits it offers:

 

Access anytime and from anywhere: One of the primary advantages of cloud accounting is that it gives you the flexibility to access the software, your stored data and manage it from anywhere and at any time. With a cloud accounting system, you can honor client commitments even when you are on the move using your laptop or mobile phone. 

 

Top Notch Security Features keep your Data Protected: Since cloud accounting systems are typically run from data centers you enjoy the substantial protection of their multiple security features without having to invest in them.  A small business may end up spending a fortune on getting top rated security installed to protect its data and software but when you sign up for cloud account you do not foot the entire bill for the multiple layers of security features that the data center deploys.

 

Automated Backups ensure Minimal Loss in case of Wipe Outs: Cloud accounting systems come with automated back up systems that can be a great advantage especially if you often fail to back up your data owing to time constraints. The provider of your cloud accounting system is responsible for back- ups and often, data is stored in multiple locations. Even if one center faces disruption or security breach, the rest of your data is secure and accessible to you. 

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