CLOUD BASED ACCOUNTING

For many business owners, cloud accounting seems like a risk. Why trust your entire operation’s financial information on a server somewhere you can’t see? As it turns out, cloud accounting is the safest way to keep all of your records. Not only does it allow for flexibility – you can work on your files anywhere you have an internet connection – but it’s also more secure. Your information is kept in large data centres with more backup systems and redundancies that you most likely have in your own business.

WHAT IS CLOUD BASED ACCOUNTING???

Cloud accounting, also known as “online accounting”, serves the same function as cloud computing. You might install the software on your computer but it runs on servers and you can access it using your Internet. In some instances, you won’t need to install the software on your computer and can access it via web browsers.

Cloud Accounting softwares, serves the same functions of normal accounting software that you would install on your computer, however the application & the data is stored in a remote external server and can be accessed through internet at any point of time from any location.

Best Cloud Accounting Softwares 

AccountEdge Pro — AccountEdge Pro does more than accounting. It features DIY or outsourced payroll services, so you can link accounting to payroll, pay your employees (including direct deposit), track time and prepare payroll taxes. Retailers will also enjoy its inventory management suite, which also integrates with popular e-commerce solutions. AccountEdge Pro is available on Mac, Windows, mobile and in the cloud. accountedge.com/pro - See more at: http://www.businessnewsdaily.com/7543-best-accounting-software.html#sthash.nuKygNQ9.dpuf

AccountEdge Pro — AccountEdge Pro does more than accounting. It features DIY or outsourced payroll services, so you can link accounting to payroll, pay your employees (including direct deposit), track time and prepare payroll taxes. Retailers will also enjoy its inventory management suite, which also integrates with popular e-commerce solutions. AccountEdge Pro is available on Mac, Windows, mobile and in the cloud. accountedge.com/pro - See more at: http://www.businessnewsdaily.com/7543-best-accounting-software.html#sthash.nuKygNQ9.dpuf

1. FreshBooks 

A favorite among business owners, FreshBooks offers one of the most user-friendly cloud-based accounting software for non-accountants. It's also our top pick for the best accounting app for iOS and Android devices for offering a wide range of accounting tasks you can perform on the go. - See more at: http://www.businessnewsdaily.com/7543-best-accounting-software.html#sthash.nuKygNQ9.dpuf

A favorite among business owners, FreshBooks offers one of the most user-friendly cloud-based accounting software for non-accountants. It's also our top pick for the best accounting app for iOS and Android devices for offering a wide range of accounting tasks you can perform on the go. - See more at: http://www.businessnewsdaily.com/7543-best-accounting-software.html#sthash.nuKygNQ9.dpuf

A favorite among business owners, FreshBooks offers one of the most user-friendly cloud-based accounting software for non-accountants. It's also our top pick for the best accounting app for iOS and Android devices for offering a wide range of accounting tasks you can perform on the go. - See more at: http://www.businessnewsdaily.com/7543-best-accounting-software.html#sthash.nuKygNQ9.dpuf

2. Sage one

3. Intuit Quickbooks online

4. Zoho Books

5. Xero

6. Paychex Accounting  Online 

7. Free Agent 

8. Less Accounting 

9. Intacct

10. AccountEdge Pro

Cloud based accounting software offers a number of benefits for businesses including:

The cloud alleviates the need for businesses to store and manage data and maintain expensive computer hardware. You can operate the software from a single computer with a standard modem providing an internet connection, without being connected to a server or having specific software installed on the computer.

Data on the move; Data can be entered & accessed from any location at any point of time. The user's doesn't required to go to their office to enter transactions or to retrieve reports.

Increases your accuracy; There is only one ledger kept and that is the file in the cloud, which improves the accuracy of the information and therefore minimises errors.

Real time Interaction; The ability for owners to interact with their accountant in real time instead of having to send the data file to the accountant each time.

Saves money; A monthly access fee is paid which usually works out less than the cost of buying the software and then paying for annual subscriptions.

Savings in upgrade cost; The software is automatically kept up-to-date by the provider meaning that you don’t need to download updates such as new tax rates where the payroll module is used.

Helps collaboration; Being able to add different users makes it much easier to collaborate with your team. It doesn’t even matter where they are, as you can all log on from different locations. 

More compatibility;  The chances are your accountant’s software can sync with yours, or you can easily export your books and send them to your accountant with a couple of clicks in a comprehensible form.

Syncs with your bank; Automatic bank feeds mean that bank transactions are immediately fed into the right accounts and sorted by category. 

Checks for you; Accounting software has clever ways of checking and reconciling different figures. If you entered the wrong amount on an invoice, or entered a date the wrong way, it will likely pick up the inconsistency and alert you. 

Can prevent fraud; With customisable user roles and built-in audit trails, your software helps you minimise, detect and track fraud activity before it actually damages your business. 

Better security; If you’re using cloud based accounting software, the professional grade security technology employed means your data is safer than on your own hardware. It’s also generally safer from fire, flood and other disasters.  

Offers instant overview; You always know exactly where your business is, as well as how it’s performing against projections, because your software can spit out an instant report showing your exact financial position.   

Access using multiple devices: The data can be accessed through laptops, smart phones & tablets. This is convenient for users who are on travel.

Nothing is perfect, so what are the disadvantages of cloud accounting?

Confidentiality of Data: The biggest disadvantage of cloud accounting is that you are sharing your data with a third party. They can use your data for their business interests, as the storage of data is fully controlled by the providers. The data could be stored in different countries and the government can also review & audit your data if required.

Restrictions in the applications: The cloud accounting may not support all the applications you have, they provide you what they have. Some of your requirements may not be available in cloud accounting.

Data Back up: Most of the cloud accounting softwares don't provide you the facility to back up your data on your computer. When you change the software, you might lose the data you already entered with the previous cloud accounting software or you will have to continue paying them to use your data.

NOTE: Financial records are extremely important for any organisation, the decision to move to cloud accounting has to be made after considering the above advantages & disadvantages.