The term cloud accounting can be a daunting term to all in the industry, both the experienced accountant as well as the recent college graduate.

The experienced accountant has their own method of getting the work done, it works for them and they are wary of the challenge change can bring. Likewise the college graduate is entering the industry, wide-eyed and scrambling to find their feet. They’ve learned the basics in college and are adamant that they need to do things the traditional way. Neither is afraid of change but both are conscious of the uncertainty it can bring.

The truth of it is that a switch to the cloud can greatly improve productivity, transparency and reliability. Cloud accounting software works in the same manner as traditional accounting software, just with the added bonus of being online. This allows you to login to your accounts from any computer at any time (just as long as you have an internet connection).

Cloud accounting software systems also allow multiple users to work on the same system simultaneously which is a fantastic productivity benefit. All of the workforce in your practice can simultaneously login to view accounts at the same time, to upload and share documents from any location. These are the most simple and obvious benefits of such systems: convenience!

The fact that the system is online also opens up many other exciting opportunities particularly when it comes to integrating and sharing data with other online systems such as Customer Relationship Management, web shops and EPOS.

Those considering the switch to online accounting can encounter a huge number of confusing and complicated terms such as SaaS, cloud, SLA’s, data security, 256-bit encryption technology, data clustering, the list is endless... Let’s face it; the technology industry likes to foist new terms and acronyms on us as often as possible! For accountants sometimes this can be off-putting. The reality is that it works the same way as e-banking, which we all readily use nowadays:

• It is available on demand
• You can log into it with secure credentials
• In can be accessed from anywhere

On top of this a cloud accounting solution is an extremely secure system. To the layman it is protected by passwords & usernames. To the tech savvy it is secured by data encryption, data clustering and firewalls. It is also securely backed up at regular intervals to mitigate against any data loss.

Benefits of Cloud Accounting Software:

1. Lower Costs: Simply put, it is much cheaper to run a cloud based system than a desktop solution. This is because there is no installation or no need to purchase new hardware. There is also no need to hire a technician to install new applications onto all computers in your office. You get a link to access the system from when you sign up. Go to this link and start working. Simple.

2. Convenience: As I touched upon above the ability to access the system from anywhere on any computer is extremely handy. This facilitates working from home as well as easy login when away on business trips, holidays etc...

3. Collaboration: The ability to get online at any time allows a number of users access the accounts simultaneously to work in collaboration with one another. The leads to greater productivity levels.

4. Security: Your data is stored safely and securely in line with the SAS70 auditing standard for service providers.

5. Transparency: The system allows you to see all transactions ever input into the system. You can see when the transactions were input and by whom. Transactions are never allowed to be deleted in the accountsIQ system which ensures 100% transparency all of the time.