Let’s chat. Cloud accounting sounds like some sort of ethereal number generating super storm that does math on a chalkboard. Okay maybe that is super exaggerated, but you may agree that the term is quite vague. Let’s break it down real quick. Cloud accounting is a simple and relevant way to do accounting. Rather than installing software on your computer, the information is stored at a third party hosted server. Cloud accounting software can be accessed from any web browser from any device. Still vague? I agree. Have you ever used Internet banking? If so, that’s the premise. Picture this. An accounting software that links to your business’s bank account and pulls transactions directly into the accounting system that can be accessed from your phone, your computer, or your tablet. Ergo, the accounting information and system can be accessed from a browser (with bank grade security might I add) rather than software that slows down your computer. Sounds pretty awesome, right?
Oh, and don’t forgot that your accountant can have instant access to your accounting system. This means… gone are the days of sending a copy of the accounting file to your accountant via flash drive (or dare I say floppy…?) and having a time lag between what they do and what you see. Why does this matter? I am so glad that you asked! Whenever your accountant does something within the cloud-based software, the business owner has instant access to the information. Accounting information is essential in running day-to-day operations. Therefore, the accounting system provides more relevant information that can help you, the business master/owner/extraordinaire, make wiser and more effective business decisions.
More information about the software we use can be found at www.xero.com.