Cloud Bookkeeping

Cloud accounting is a method for managing your financial records that does not require the use of pricey software or an accountant. Internet connectivity and a device (a computer, tablet, or smartphone) that is capable of connecting to the internet are all that are required. As long as there is a connection to the internet, you are free to work whenever you want and anywhere you want.

If you use Cloud Bookkeeping, every time you log in to see how many hours have been billed, this month; what expenses are due soon; or which invoices were paid last week - you'll find everything right where you left it, regardless of whether you're at home working from your laptop, out of town on vacation working from your phone, or in the office working from a desktop computer. This is true regardless of where you are: at home working from your laptop, out of town on vacation working from your phone, or in the It never ceases to amaze me how many ways there are in which we can utilise modern technology to make our lives easier.

Bookkeeping in the cloud is an excellent tool for ensuring that your company stays on schedule. There are a lot of advantages to using cloud accounting, such as the fact that it is simple to use with the majority of platforms, that it is inexpensive for users who have fewer demands, and that it provides a lot of flexibility for employees who travel frequently or operate from home offices. The purpose of this subsequent blog post is to investigate what cloud bookkeeping comprises and how it might be utilised by proprietors of any kind of small organisation.

Cloud bookkeeping is an excellent approach to maintain control over your financial situation without having to spend a significant amount of time in front of a computer every day. The ability to take care of the requirements of your company with only a few mouse clicks can save you a significant amount of time each week, potentially even hours. In addition, cloud bookkeeping provides all of the benefits that set other accounting software apart from conventional techniques, such as simple installation, quick data access, fewer required updates, and the elimination of the need for costly upgrades or the purchase of new gear.

The Benefits of Cloud Accounting for Business

The term "the cloud" has taken on a completely new significance in modern parlance as a direct result of the growing prevalence of cloud computing. But can you explain cloud computing in more detail? And might a small firm benefit from using this method?

To avoid getting lost in "geekspeak," cloud computing simply means that the software applications you use and your data are stored on remote servers on the internet, rather than "locally" on your computer's hard drive or your server. This is in contrast to traditional computing, in which data is stored "locally" on your computer's hard drive (s).

A lot of people used to find it unsettling to think that the data might not be located in the same physical location as them. What about the safety measures? What about the possibility that you will lose your data? Surely it is preferable to have your data stored on a computer that is physically located on your premises and that you have access to. That's an old-fashioned way of thinking in this day and age.

In a manner that may seem counterintuitive, the storage of your data in a cloud application is likely to provide a higher level of protection than its storage on a computer or server that you maintain on your own premises.

What the Heck Is a Cloud Anyway?

Consider this the next time you do your banking online. When you log in to your bank account, you are using the cloud to access your financial information. The cloud makes it possible to access data and software online at any time, from any location, and via any device. Your desktop or portable hard drive is no longer the most important component of your computer or laptop.

Cloud Accounting: What Is It?

When you use cloud accounting, all of your company's books are stored in an online repository. This includes keeping records of one's assets and liabilities, as well as one's income and expenses. Because the information is encrypted, similar to how a bank's data is, only individuals who have the login information can read the data. In the early 2000s, companies started using cloud accounting software, commonly referred to as online accounting software. This type of software is stored in the cloud. The majority of systems come packaged with a set of tools for quoting, invoicing, and handling various invoices. Discover more about the capabilities of accounting software that runs in the cloud.

How to Use Cloud Accounting

Users sign up for a subscription to an online accounting software package and then upload their bookkeeping data to the cloud. After that point, they will be able to access their accounts using any online browser or via an app on their mobile device. The vast majority of customers connect the programme to the bank account associated with their company, allowing for the automatic transfer of banking transactions from the bank to the books. Because of this, they won't have to enter as much info.

Cloud Accounting Software Advantages

Running your business accounts online has many advantages.

• Your bank may be able to send information regarding your sales, revenue, and purchases directly to your books, saving you the time-consuming task of transcribing this information.
• At any given time, you are able to view your current financial condition.
• Online collaboration with your team and advisers is made much simpler by having access to multiple users at once.
• Because it is an online application, there is nothing that needs to be installed or updated, and all of your data will be automatically backed up.
• You are able to set up a dashboard that displays essential financial information such as who owes you cash, what payments are due, and just how your cash flow is appearing at any given moment.

Utilising Accounting Software Shouldn't Be Difficult

The use of accounting software for small businesses that is not accessible over the cloud might be a tiresome process. It demands a significant amount of manual data entry, which might consume an inordinate amount of your time and effort. This does not contribute anything of value and removes any enjoyment from being in business. Using software that is hosted in the cloud can help your firm save both time and money.

Traditional Accounting Software Issues

• The data that is stored in the system is not always in the most recent version.
• It is only compatible with one computer, and data can be transported from one location to another using various means, such as a USB drive. This is not a safe or dependable method.
• User access can only be granted to a single individual. The key personnel in the organisation do not have access to the financial and consumer facts.
• Keeping backups can be expensive and time-consuming, assuming that it is even possible.
• In comparison to cloud accounting software, which can be kept up to date without the user having to lift a finger, upgrading this system is not only costly but also difficult and time consuming.

Why Accounting Software and the Cloud Make a Perfect Match

Cloud-based software can be accessed and used from any device so long as it has an internet connection. Small business owners can stay linked to their data and their accountants by using accounting software that is hosted online. The application may communicate with a wide variety of business programmes developed by other companies. It is easy to use, scalable, and cost-effective all at the same time.

It is not necessary to download and run software locally on a desktop computer when working in the cloud. Instead, you sign up for a recurring monthly subscription to pay for the software.

World-Class Cloud Security

You, as the owner of a small business, may have certain reservations about entrusting the storage of your data to a cloud service provider. On the other hand, storing data in the cloud is among the safest methods available. If you save your data on the cloud, for instance, even if your laptop is stolen, no one will be able to access it unless they know the login information for your online account. In addition, when you use software that is hosted in the cloud, your data is stored on safe servers located online rather than on your local hard disc.

Being hosted in the cloud ensures that a company's production will not be negatively impacted in the case of an emergency such as a fire or a natural disaster because there will be no downtime. Off-site storage ensures that none of your information will ever fall into the wrong hands. If you have accessibility to any computer or mobile device that is linked to the internet, you will be able to get back online and continue operating normally.

In addition to this, you are able to regulate the level of access that users have to your data if you invite them to view it. Sending a USB stick with your data on it or sending an email with your files attached is a lot less safe method than using this more modern alternative.

Software businesses that store data in the cloud are responsible for ensuring that the data they store about you and your business is always protected and kept private. If you do your banking online, for instance, you are already set up to use cloud accounting because you have the necessary infrastructure in place.

Work Smarter With Cloud-Based Data Access

The benefit of using online accounting software is that it provides you the flexibility to run your business from anywhere, including your office, your home, or even while you're travelling. Regardless of where you are, you can be assured that you always have the most recent information regarding the status of your company at your fingertips.

In the cloud, software updates can be generated and distributed more quickly while also being easier to do so. This eliminates the need for you to worry about installing the most recent version, and it grants you immediate access to any new features that are released. In addition, when you use accounting software that is hosted in the cloud, you have the option of remotely running your company from any location in the world. And the possibilities are practically limitless when data is fluid and easily available.

Cloud Bookkeeping

Everything revolves around software for online accounting:

With cloud bookkeeping from Kashflow, you can stay in contact and in control of your business no matter where you are as long as you have access to the internet, at any time of the day or night. Forget what's written in the stars; these days, it's all about the cloud. Imagine having to perform a bank reconciliation while you're travelling on public transportation!

A number of years ago, the most of us were largely unfamiliar with the idea of computing in the cloud. On the other hand, we have developed and are continuing to improve our web-based software that will make it simple for you to keep track of the books for your business. Our system is geared primarily towards microbusinesses, such as those run by freelancers and single proprietors, but it may also be adapted to fit the requirements of more conventional SME organisations.

And therein lies the solution. Access to our accounting system is obtained solely through the use of the internet. There is no need to download memory-intensive software onto a desktop computer (which would require numerous licences to be purchased, for example, if you wanted it on a laptop at home as well), and there is no waiting for the application to load slowly. After successfully logging in, you can proceed.

Utilise Online Accounting Software to Manage Your Books in the Cloud

It is important to note that the online bookkeeping software that we are discussing is not to be confused with other so-called "cloud services" that are touted as providing outsourced accounting services via the internet. Kashflow is a system that is straightforward to instal and utilise, and it provides exceptional functionality. You are free to do as much or as little as you like with it, which means that you can do everything from completely managing your business down to end-of-year accounts and tax returns, or you can just use it to record debits and credits so that your competent accountant can then conveniently view the information and do the rest of the work for you.

The location of the provider's headquarters is an essential consideration to make before selecting a cloud-based bookkeeping software to use. Due to the fact that we are based in the AU, our procedures are always compliant with the most recent rules and regulations that apply to British companies in terms of tax, VAT, and various other revenue and customs issues. This is an essential requirement for all businesses, regardless of their size, that are based in this country.

There is actually an offline component to Kashflow, just when you thought we couldn't possibly wax poetic about the benefits and conveniences of cloud bookkeeping any further. For instance, if you have a large number of transactions to input all at once, you can load the details rapidly and conveniently using the RapidFire software, which you can download and use even when you are not connected to the internet.

When it comes to the ease of use of our cloud-based accounting system, we take great satisfaction in the fact that it is both user-friendly and dependable. If, despite the fact that most of the difficult processes take place behind the scenes, you nevertheless manage to get things all tangled up, be assured that our knowledgeable customer support team is standing by and ready to assist you in any way they can.

One of the Four Leading Providers of Cloud Bookkeeping Services

You don't need to take our word for it; all you need to do is conduct a short look on the internet to get impartial cloud accounting software reviews written by accountants. These reviews will show that we have been voted in as one of the "big four" in this extremely competitive industry. This indicates that not only by the end-user, who typically has limited knowledge of accountancy methodology, but also by the professionals who utilise our accountant's version of the system in order to work on customers' accounts in real-time, our online accounting package is well appreciated.

Why Is Bookkeeping in the Cloud Best For Small Businesses?

The Development Of Bookkeeping

Where better to start our look back at the history of cloud bookkeeping than at the very beginning, with the first computerised bookkeeping systems? There was no mistake in the date you provided; the earliest known instance of computerised bookkeeping occurred exactly that long ago.

Payroll was initially processed using a state-of-the-art UNIVAC computer, which General Electric started purchasing in 1955. UNIVAC, which was capable of calculating thousands of figures in a single second, made the process of keeping GE's books significantly faster and significantly reduced the amount of errors.

It seems obvious that it will be some time before computerised bookkeeping becomes widespread outside of really large multinational corporations. It would not be for a considerable amount of time until well-known brands like QuickBooks and MYOB would make their debut.

The Beginnings of the Internet (1969)

And of course, there is no other place to start when discussing the development of online bookkeeping other than with the inception of the internet! The internet has been around for a surprisingly long time considering how popular online bookkeeping services have become in recent years.

No, it did not make its debut in the early 2000s, the 1990s, or even the 1980s; in point of fact, the earliest examples of the web date all the way back to the era of rock and roll and hippies! Joseph Licklider was one of the earliest computer scientists, and he received financing from the United States military in 1963.

What exactly is his top-secret mission? in order to promote immediate sharing of information, to build a network of computers that are interconnected with one another. Networked interconnections... networked interconnections... the internet... ARPANET served as the foundation for what would later become the modern web.

Without the need for a central hub or database, computers are now capable of immediately connecting to one another and exchanging data and files despite the huge distances that separate them. But, more importantly for the purpose of this discussion, users had the ability to remotely access files that were saved on a different computer; this was the beginning of cloud storage.

Emergence of Cloud Computing (The 1990s)

Keeping files in a remote location is one thing, but using a computer application in a remote location is an entirely new challenge!

It wasn't until 1999 that internet connections and infrastructure improved to the point that it was possible to practically execute a computer programme via the web, despite the fact that many people had theorised about the possibilities of cloud computing years before.

This distinction goes to Salesforce.com, which began operations back in 1999.

With Salesforce.com, sales employees were able to manage leads without having to instal anything on their PCs and instead access everything through an internet browser. This was in contrast to other CRM programmes that were available at the time.

Since Salesforce.com demonstrated that it was feasible, it was only a matter of time until somebody attempted to take it one step further by offering an online bookkeeping service.

The Bookkeeping Landscape Is Changed by Xero (2006)

We have our neighbours on the other side of the Tasman to thank for the revolutionary idea of cloud bookkeeping. Xero is the world's first cloud bookkeeping platform, and it was originally introduced to the public in 2006. Xero, on the other hand, was designed from the beginning as a cloud-based bookkeeping platform, in contrast to other online bookkeeping services that were modified for the cloud after they had already been developed.

Xero saw explosive growth in New Zealand before rapidly expanding its operations to Australia in 2008. And just as soon as it did, the staff at Maximum Business Solutions began training with it, getting to know its different systems and subtleties so that we could introduce cloud bookkeeping to be used by small and medium-sized businesses all around Australia!

MYOB

MYOB is an Australian bookkeeping platform that was initially established in 1991 and specialised in desktop accounting software at the time of its founding. If you have ever done your own bookkeeping or accounting, there is a good possibility that you have used the programme MYOB at some point.

It was simply a matter of time until MYOB moved to the cloud, considering that more and more software packages are moving in that direction.

Alongside the production of its popular desktop accounting software, MYOB has recently begun to provide online bookkeeping services for small businesses. This development was precipitated by the meteoric rise of Xero. Have you used MYOB before, and do you understand how it functions? If this is the case, MYOB Essentials is a good option to consider.

QuickBooks

Since its introduction in 2002, QuickBooks has been considered to be one of the most popular accounting and bookkeeping software programmes available everywhere in the globe. In line with the progression of technology, QuickBooks eventually made its way into the cloud.

Benefits of Online Bookkeeping

The accounting industry has undergone a substantial productivity revolution as a result of the introduction of cloud bookkeeping. The foundation of cloud bookkeeping is the automation of manual activities, which frees up time for the user to focus on what really matters.

Hardware

Computer hard drives are like automobile engines. It is not a question of whether or whether they will ever break down; rather, the question is when they will break down. That is why all of us make sure to perform data backups on a daily basis, right? Furthermore, we all remove these backups from the premises on a daily basis, don't we? And each of us does weekly tests in which we restore the backups in order to verify that the backups are functioning as expected?

No? Really? Potential for calamity! And yet, this is precisely what the majority of small firms do not succeed in doing.

The elimination of the need to regularly back up one's data is yet another significant benefit offered by cloud computing. Instead, the providers of the cloud apps back up your data automatically, and they store it simultaneously in multiple places across the world. Your information is kept in multiple locations across multiple continents, so even if one of their buildings were struck by a natural disaster like a devastating earthquake, it would not be lost because it is replicated in other cities around the world.

But even if technology advanced to the point where hard drives in computers never failed, there is one thing that will always happen to them in the end: they will fill up. They are out of available space.

And this is a major inconvenience that comes along with the traditional method of storing data locally rather than in the cloud: You are required to move data across to new hard drives or servers, as well as reinstall the various applications and databases. Alternatively, you can pay IT providers to do this for you. It will cost money and cause a disruption.

You won't have to worry about that annoyance anymore thanks to cloud computing.

More Client Support in Less Time

Cloud bookkeeping and automation are two sides of the same coin. Putting a manual process into the hands of a computer is what we mean when we talk about automation. The cloud makes this possible on a scale that was never before imaginable.

For instance, transactions can be created in cloud accounting solutions without the need for manual data entry. In the past, entering data required a significant amount of physical labour. Bookkeepers and accountants would have to spend a significant amount of time entering transaction information from paper bank statements.

The accounting software that you use is not the only factor that might contribute to these kinds of productivity benefits. A significant number of the more extensive accounting platforms come with an active add-on ecosystem. These extensions are built into their programme and work seamlessly with it. Everything from document workflow to cash flow forecasting can be automated with the help of various software solutions.

Bookkeeping in the cloud enables financial advisers to service more clients in a shorter amount of time through the use of automation. They also have the option of concentrating on work that pays better.

Because of all of the automation that is included with cloud bookkeeping platforms such as Xero, MYOB, and QuickBooks, you will never have to pull out a pocket calculator or open a spreadsheet ever again!

You will be able to save hours of time that you otherwise would have spent on bookkeeping as a result of the fact that all incoming and outgoing funds will be recorded in real time.

And that means you'll have more time to devote to the myriad of other obligations that come with owning a business.

Financial Reporting in Real Time

For many people who own their own businesses, the ability to effectively manage cash flow is the holy grail of achieving financial success.

Entrepreneurs frequently lack visibility into the current state of the financial aspects of their companies. As a direct consequence of this, they are forced to carry out their day-to-day operations in the dark. A company's success or failure can often be determined by its access to critical financial information in a timely manner.

This problem is solved by using cloud bookkeeping. It gives those who own businesses the ability to once again take control. It gives them access to information that is continuously and automatically updated, as well as data that is gathered in real time.

They are freed from the obligation of waiting for the newest edition of their QuickBooks file before monitoring their earnings and expenditures. Instead, owners of businesses may now monitor their financial transactions around the clock, seven days a week, to know where their money is coming from and where it is going.

Collaboration Is Simple

Cloud computing makes it possible for business owners and their advisors to get the information they require at any given time. This makes it easy to collaborate wherever you are, whether you're at home, in the office, or on the go.

Currently, financial advisors who operate in a world that does not utilise cloud computing spend up to 35 percent of their time pursuing clients for documentation and responses.

Cloud advisers and owners of businesses can leverage systems such as Hubdoc in order to automatically centralise and organise critical financial documents. This makes it easier to work together and eliminates the friction that is involved in audit-proofing a company's finances. In addition, papers stored in the cloud have a high level of security and may be accessed from any location. This ensures that bookkeepers and accountants always have access to the papers they require at the precise moment they are required. Additionally, it provides individuals with a greater level of control over their time.

You may simply access and collaborate in real time with your team, financial advisor, and bookkeeper in Melbourne, giving you full command over the information pertaining to your finances.

Because cloud bookkeeping is web-based, you and your colleagues will be able to work together on your accounting... without having to travel to your bookkeeper's office or make prior arrangements for a meeting.

Cloud Software is Constantly Evolving

The simplicity with which service providers may distribute software upgrades is one of the most entrancing aspects of cloud computing. This is not the same as purchasing desktop software, in which case you are locked into using the version you purchased. And in this case, upgrades are only available if you purchase the most recent version. Updates to cloud software, on the other hand, take place automatically and at no further expense to the user.

Feedback from consumers is solicited by a significant number of cloud software providers. Then, they use that feedback to contribute to their product roadmap. When the software is updated, this allows for the outcomes to be seen by the customers.