More businesses than ever before are adopting cloud accounting to keep track of their important financial records as well as perform transactions. Nevertheless, there are still those who are uncomfortable storing this data in so-called cyberspace. This brings us to the question of whether cloud accounting is in fact the way of the future or whether it is simply the flavour of the day.
It is our contention that cloud accounting is here to stay. By 2014, a stunning 25% percent of all small to medium sized businesses had adopted the cloud for at least some of their daily operations. With the increasing use of smartphones and other mobile devices, this trend is only likely to increase.
The term “cloud” may cause some to think that they are storing information in some nebulous location but the fact is that when you contract cloud services, you are actually storing your data with a particular company with very large, very powerful servers and back-up servers. In most cases, this actually provides better protection for your data than storing it yourself on your hard drive or on a USB stick.
Cloud accounting is using a file or collection of files on these servers that you can access and update anytime that you have a connection to the internet. No internet connection? No problem, you can still update your files on a device and they can be automatically updated on the cloud next time you have a connection.
No longer are today’s entrepreneurs relegated to conducting their daily operations from an office. With our increasing rate of connectivity, they can literally work anywhere – whether it be from home, at a local Starbucks or from a beach in the Caribbean for that matter.
Business men and women who are able to access and update their information from anywhere will have a distinct advantage over their competitors. And since many of us are already doing our banking online, it makes sense to have cloud accounting practices that can take real time information from our financial accounts and input the data into accounting documents.
Not only does this help create greater accuracy in bookkeeping, but it also frees up business executives to focus on other aspects of the business – activities directly related to turning a profit.
Accountants and other financial professionals are by their very nature extra cautious when it comes to issues of security – as they should be. And a question that often arises is how secure is a system that is offsite?
The answer to that question is – extremely. Companies that deal in cloud services must have a high degree of security to attract and maintain business. Firewalls are built in to protect a company’s data from hackers, and access can be granted and denied to employees and contractors remotely. If an employee leaves the company for example, an executive can turn off their permissions instantly from anywhere.
As you can see, not only is cloud accounting safe and efficient, but it is clearly the way to go for any business that does not want to fall behind the curve and be put at a competitive disadvantage to their competitors.
The Virtuous Bookkeeping explores ways for entrepreneurs to enjoy independence and better run their business. Join over 10,000 subscribers and get our best articles delivered via email.