What is “The Cloud”?
Think about when you use internet banking. Every time you access your bank data, you’re using the cloud. The cloud makes data and software accessible online anytime, anywhere, from any device. The hard drive on your computer or laptop is no longer the central hub.
What are “Cloud Accounting Solutions”?
In the case of cloud accounting, you keep your business books online. That includes records of income and expenses, and assets and liabilities. The information is encrypted, much like a bank’s, so only people with the login can view the data.
How Does it Work?
Users subscribe to an online accounting software solution and move their books to the cloud. From then on, they can access their accounts from any web browser, or from an app on their phone. Most users connect the software to their business bank account, so that banking transactions flow automatically from the bank to the books. This saves them from a lot of data entry.
What are the Benefits?
Running your business accounts in the cloud has many advantages:
- Data about your sales or income and purchases can flow straight from your bank to your books so you don’t spend hours posting entries.
- Multi-user access makes it easy to collaborate online with your team and advisors.
- It’s online software so there’s nothing to install or update.
- You can set up a dashboard showing important financial information like who owes you money, what bills are due, and how your cash flow is tracking.
There are endless possibilities and choices for “Cloud Accounting Solutions”.