What is Cloud Accounting?

In a time of rapidly changing markets, empowered customers and connected employees, your business needs to be responsive and flexible; and you need to have the tools in place to access your business data in minutes, not weeks. Here we answer your questions: “what cloud accounting?” and “what are the benefits of cloud accounting?”

The cloud explained

The cloud is where you put all your data, all your files and even your software so you can access it all from any computer or device, anywhere, at any time.

Examples of services in the cloud

Internet banking

Traditionally, your financial data (such as bank statements) were only available to you when you were physically at the bank. With internet banking, your financial data is available online in the cloud. You can access it anytime, anywhere and on any device – as long as you have an internet connection.

Online shopping

More and more retail stores are moving to the online shopping experience to increase sales. Physical stores are only open at limited times and this means that customers have a limited time frame to view and buy your products. With online shopping, customers can view products and shop at their convenience – any time of the day, from anywhere.

Cloud accounting explained

With cloud accounting, (also referred to as “online accounting”), instead of installing and using accounting software on your computer, you access the software via the Internet. The greatest value cloud accounting has brought to businesses is the ability for accountants to work on your business in real time, as opposed to traditional accountants.

Benefits of cloud accounting

  • Your accountant has real-time access to your financial situation
  • Flexibility of accessing your files, documents and data from anywhere
  • No software to install on your devices
  • No software updates to worry about
  • Cloud storage is safer than many small business networks and employee laptops
  • No servers to monitor and maintain
  • Instant access to your business bank account while you’re on the move

How cloud (online) accounting software benefits your business

  • You have a clear overview of your current financial position
  • Multi-user access makes it easy to collaborate online with your team and advisors
  • Worry-free maintenance means you can spend more time doing what you love
  • Everything is run online, so there’s nothing to install and everything is backed up automatically
  • Updates are free and instantly available.
  • Upfront business costs are reduced – version upgrades, maintenance, system administration costs and server failures are no longer issues. Instead, they are managed by the cloud service provider.

It’s easy to use cloud accounting software!

Square Mile Accounting is a certified Xero Online Accounting practice based in London, with expert chartered accountants to see you through.

We’ll set up and pay for your Xero account, and we’ll show you how to use it. Contact us for a free chat about your business and accounting needs.

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