Cloud accounting is rapidly changing the way most people collect, store and access their accounting transactions and records.
Generally speaking, cloud accounting refers to many types of accounting solutions, all of which have one thing in common: the accounting applications are housed remotely in a private, secure space that only authorized users can access. Cloud accounting removes the location of the accounting system(s) and data from the devices used by connecting via secure internet. As a result, accountants, employees and even customers and vendors may enter transactions or updates from their own devices (think cell phones and tablets as well as laptops), and accountants are freed from a single device and/or location to perform accounting functions.
Desktop accounting (located on a local, physical device, with or without internet access) still serves a purpose for businesses in some specific situations. However, access to a “desktop accounting system” can be limited, especially if the small business added additional business locations and/or needed outside consultants such as bookkeepers, tax preparers, or auditors to be able to access the system.
Cloud accounting solves the limited access problem because you can access a cloud accounting system via an Internet browser or a remote desktop connection that accesses the system through a private connection.
Here are some of the reasons many small businesses are moving to the cloud:
The costs of a cloud accounting solution will vary depending on the following factors:
Some accountants will include your software, hosting, and other technology requirements in a comprehensive price that includes bookkeeping, payroll, controller review, and tax compliance. In these cases, the accountant will likely deal with the cloud accounting vendor and you will not have to manage that relationship. In other cases, the accountant may simply pass on some references to you and leave you to work with the vendor directly.
If I’ve piqued your curiosity about cloud accounting, please feel free to reach out so we can continue the conversation. I can share any specific current success stories and we can discuss recommendations and costs for a proposed move for your business.
Feel free to give a call or send me an email to start the conversation.