Cloud Accounting
See how technology and the Internet is simplifying our Accounting Systems
“Cloud” is a general metaphor used for referring to the Internet. Cloud computing is a system of hosting services through the internet and is categorized into the following:
- Infrastructure-as-a-Service (IaaS)
- Platform-as-a-Service (PaaS)
- Software-as-a-Service (SaaS)
Hence, a cloud accounting software will fall under the Software-as-a-Service category
since it is just like other traditional accounting software, however, instead of being
installed on your hard drive it is accessed online i.e. through a web-based interface.
A cloud accounting software is hosted by a remote server that receives data from your
end, processes it, and returns it to you.
Cloud accounting is a way of maintaining your accounts from any location as long as
you have an internet connection. As compared to the traditional method of accounting,
it doesn’t require a separate dedicated hard drive for the software to save all the
accounting or transactional data on.
Features of cloud accounting
Cloud accounting comes with some awesome features that I’m going to list down below:
- Some of the cloud accounting softwares like Gem are providing multiple languages. The server can be accessed by all your branches around the world but the data will be displayed in the user specified language on each individual system.
- The system will set the local currency as default for each transaction. It will automatically convert any foreign currencies into the local currencies using a fixed formula or real-time exchange rates. This will ensure that you save up your time you waste on performing complicated calculations for different currency conversions.
- Your inventory value, stock level, stock count will all be managed in real-time reducing significant chances of errors. You will be able to transfer your inventory from one account or location to another with just a single click. Cloud accounting software have tools for inventory management that only inventory dedicated software used to have. You can compare your current inventory to future estimates or future sales order and have a better control over your stock levels.
- You can access the cloud accounting software from any location and have all the required data displayed on your ipad/tablet. A cloud accounting app would display all the information like transactional data, analysis and comparisons as if they’re on your fingertips. By having all the basic data on hand 24/7 you can take important decisions at your own convenience without having to be tied to the office table.
- As mentioned above you can receive reports at a single tap or click. The cloud accounting software will give you the exact type of report you’re looking for analyzing your profits, sales or expenses. You can also be notified regarding any financial alert for example, a withdrawal by an employee or when the profit, cash or any other balance reaches a specific level.
Advantages of cloud accounting
Cloud accounting softwares give your business the upper hand over other businesses
that don’t have these services available to them. I’ll mention a few below:
- One of the major advantages, for obvious reasons, is reduction of errors, mistakes and fraud. The cloud accounting software performs audit at transactional level diminishing the chances of fraud and error.
- Performs efficient processing of transactional data.
- The burden of work is shared with the cloud accounting service provider who manages all the updates, administration costs and maintenance as well as takes care of any server breakdowns.
- Cloud accounting softwares also do automated backups on a regular basis ensuring that no data is lost even if your hard disc crashes.
There are several more pros to cloud accounting system that would definitely improve your business. So, what are you waiting for? Go get a cloud accounting software and make accounting easier for you, your employees and all the other stakeholders involved in your business!