Unless your headquarters is located under a particularly large rock, you’ve probably heard of cloud-based accounting systems before. It’s the hot topic of conversation, so you might be entertaining the switch from traditional accounting software to systems that use the cloud. The decision isn’t always an easy one. If you still aren’t sure if your small business is ready, here are three facts that may sway your mind.
- It’s convenient
Traditional accounting software is tied to a single device. Whether it’s loaded onto a disc or downloaded directly to your computer, the data it stores can only be accessed from that CD-ROM or computer. Anytime you want to review or update this information, you have to physically go to that device and manage the details of your accounts. When you need help from your CPA (Chartered Professional Accountant), you must arrange a meeting at your office so he or she has access to this information.
Cloud-based systems, on the other hand,aren’t tethered to one location or one device. Rather than saving data onto a hard drive or disc, these programs save information onto the cloud. The cloud is a network of servers that use the Internet to store and process data. It’s accessible by any device that’s connected to the Internet, so it simplifies collaboration with your accountant and other members of your team.
Just make sure your CPA is an experienced virtual accountant like Purvish Shah. As the Principal of Adian Professional Corporation, he leads a CPA firm that specializes in cloud technology. He relies on his experience helping owner-managed businesses and publicly listed enterprises to offer customized support on a case-by-case basis. Business owners ready to switch to cloud accounting can visit Adianpc.ca to learn more about how a virtual accountant is crucial to your success.
- It’s secure
With the introduction of the Internet, you may worry that your accounting records are now accessible to literally anyone with Wi-Fi, but that’s not the case. Despite celebrity scandals that suggest otherwise, the cloud is secure. Encryption and passwords safeguard online bookkeeping systems, and these security measures make the web a safe tool for your bookkeeping.
It also prevents physical threats from jeopardizing your accounts, like theft, natural disasters, or data corruption. Cloud-based programs require login credentials to access confidential data, so a stolen computer isn’t a threat to your security.
Natural disasters, though rare in cities around the GTA like Markham, are common occurrences in other parts of the world. The wildfires in Southern California are just one example of an emergency that could destroy your office equipment. If you used traditional software, this disaster would raze any data along with the computer. Safe on the cloud, your bookkeeping is separate from any physical damage done to your computer.
Natural disasters aren’t the only circumstances that threaten your data. Computers get viruses, hard drives can fail, and software experiences glitches. Operating systems can crash unexpectedly, or a user can make a costly mistake erasing information. In the cloud,data undergoes regular automatic backups and updates, so information is safe froma defective device or a thoughtless mistake.
- It’s cost-effective
When it comes down to it, the most important factor is your bottom line. Software doesn’t just have to work well, it also has to come within your budget. Traditional accounting software often tests your financial limits. Its upfront costs are expensive when you have to purchase the licence for computers and users. Its overhead can be costly, too. Unavoidable software updates often come at a price, and its maintenance, backup, and other IT tasks will also cost you money.
In direct contrast, cloud accounting promises lower upfront business costs. The cloud service provider covers many of the upgrades, administration costs, server failures, and general maintenance costs. It automatically updates and backups for free, giving you an accurate, real-time look at your finances at any time. This automation frees you up your time, so you can do what you actually love doinginstead of bookkeeping.
And that reason alone could be the push you need to adopt cloud accounting. Convenience, security, and cost combine to liberate your time, so you can spend it the way you’ve always wanted. Because let’s face it — bookkeeping is only fun for a small percentage of business owners. The majority of entrepreneurs would much rather enjoy concentrating on what makes up their core business tasks. The cloud can free up your time, so you can do just that.