With modern technology quickly advancing, and businesses growing so rapidly, cloud accounting is the only option to meet the needs of business in a modern world – the older systems of accounting just won’t cut it anymore.
What is cloud accounting?
Cloud accounting refers to the delivery of accounting services online, via the cloud. Essentially, this means that you keep all accounting records including records of assets, income, expenses and liabilities in the cloud. This can be compared to older systems where you used to have to house all accounting information on your own system.
Cloud accounting goes beyond the functionalities of regular desktop accounting. Instead of having a single desktop application, you can log into your account online from anywhere at any time and trust that all your accounting data will be safely stored on an up to date cloud server. The information within cloud accounting is encrypted, and thus only people with user permissions can access your information.
Cloud accounting software can revolutionise the way you undertake bookkeeping and accounting, as it streamlines your financial administration processes to ensure maximum efficiency.
What are the benefits of cloud accounting?
Cloud accounting ensures a range of benefits such as:
- Access your financial data at any time from anywhere: Through being able to log in on multiple devices in any location where you have internet, you can access your accounting data 24/7.
- Real-time reporting: Avoid looking at reports which are days, weeks or even months old. Cloud accounting gives you access to real-time data, as long as you keep your bookkeeping and reconciliations updated. Having a live view of your finances is vital when making strategic business decisions.
- No need for software updates: Cloud accounting ensures that you’re always using the latest version of the software – there’s no need to manually update the program or apply security fixes, as this is all done automatically.
- Multi-user access: Grant access to your accountant, bookkeeper or other advisors when using a cloud accounting platform. This will give your advisors real-time access in a safe and secure manner.
- Dashboard flexibility: Design your dashboard to your liking, and have it show your most important financial information, including bills, debtors and cash flow.
Why we recommend Xero for your cloud accounting?
There are many benefits of choosing Xero to be your cloud accounting platform.
Xero is intuitive and user-friendly, meaning you can access and interpret your financial information yourself (although we recommend that your accountant sets up your account and reporting to ensure maximum use of Xero).
Xero is scalable. This means that Xero can handle increasingly complex financial governance needs, thus, you won’t need to change cloud accounting platforms as your business grows.
Xero offers a strong return on investment, as you only pay for what you use. Xero has a low barrier to entry, starting out with a competitive monthly fee, and the value-add to your business is significant.
Moreover, you can leverage the Xero marketplace which has thousands of apps to integrate with Xero, allowing for you to personalise your cloud accounting experience.
Xero has a range of features and capabilities which make it the leading cloud accounting system on the market including:
- Paying bills and receiving payments
- Creating, sending and following up invoices
- Reconciling bank account and credit card transactions
- Payroll including calculating pay, tax and super entitlements, paying staff and reporting
- Financial reporting
- Inventory management, project management and tracking
- Preparing and submitting business activity statements (BAS)
- Creating and sending quotes and orders
- Submitting, approving and reimbursing expense claims
- Managing customer and supplier contacts
Xero has always been a fully cloud-based accounting platform which has paved the way for cloud accounting through undergoing quick innovation, meaning that competitors have had to play catch up when offering cloud-based solutions. Xero is also user-friendly, meaning that anyone can use it with ease, with or without specific training. When users wish to upskill when using the software, Xero offers a range of user forums and guides.
Looking to transition to Xero? We can help. Leverage the cloud for your accounting with Keeping Company. Contact us today.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice, and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
Ryan Miller is the founder of Keeping Company, May 2011 – Present. A tie-loathing, people person with an entrepreneurial spirit. Ryan’s drive to modernize the accounting industry coupled with his desire to help people succeed saw the birth of Keeping Company. Focusing on the SME space, KeepingCo. empowers business owners by providing high-quality end-to-end accounting and business advisory services.
Ryan took his first Accounting role working at KPMG. He went onto further refine his skills as a Chartered Accountant taking the role of Director of a Chartered Accounting firm in Erskineville.
Ryan is a fully qualified Chartered Accountant and a member of the Institute for Chartered Accountants Australia and New Zealand. He is also a Registered Tax Agent and holds a Bachelor of Commerce from the University of South Australia.