Cloud Computing: What Accountants Need to Know

Cloud Computing: What Accountants Need to Know

At this rate, cloud computing is set to take over from traditional methods in all aspects of business, with accounting looking to be a ripe candidate for its next target. Cloud Computing should not replace your Accountant, but it should provide a facility for collaborative accounting.

In fact, many businesses are already opting to transfer their accounting systems to the cloud, but if you’re a total novice when it comes to advancements like these, how can you know whether it’s likely to work for your business?

Here’s a crash course in everything you need to know before you make the leap.

What is ‘cloud computing’?

Cloud computing, simply put, is best considered as a matter of taking existing systems and placing their operation online.

In other words, while traditional methods require physical in-house infrastructure and maintenance of servers etc., cloud methods are managed by a vendor who hosts your systems, and provides processing power and space.

The vast majority of cloud accounting systems are deployed on a subscription basis, which means you needn’t worry about purchasing one-off licenses.

What are the benefits?

• Fewer maintenance costs: Because cloud solutions do not require in-house hardware, you needn’t worry about maintaining or upgrading existing software or servers.
• Accessibility: All you need to access cloud-based applications is a functioning internet connection, which allows employees to work remotely, and allows business owners to access their information from virtually anywhere.
• Fast installation: Because cloud solutions do not require software or hardware installation, cloud-based accounting systems can be implemented in no time at all.
• Fewer support costs: Cloud based troubleshooting will always be handled by the vendor, allowing you to focus on other things, and in turn, allowing the company team members who usually devoted their attention to upkeep to spend their time more productively.
• Better upgrade systems: Upgrades, too, will be handled by the vendor, saving you time and ensuring that your accounting systems are as up-to-date as possible, allowing for growth and efficient workflow.
• Easy backup: Cloud computing vendors will run automatic backups of data, so that something which once took plenty of time and energy is effortless.

What about security?

For many, security is the main barrier to making the switch to cloud-based accounting solutions.

If you’re researching potential vendors, then look out for their AICPA Service Organization Controls Report (SOC), formerly known as a SAS 70 report.

These reports will provide information on the security of the vendor’s systems. You can ask the vendor for access to it, and examine it for your own peace of mind.

If you live in Ireland, and thinking about making the switch to online accounting software, don’t hesitate to get in touch with eFolio Accounts Ireland.

We also provide a free 30-day trial of our product! Absolutely no credit card required!

eFolio Accounts is designed specifically to make managing your finances and bookkeeping easy and to help you have better cash flow and a more profitable business.

Get paid on time with easy invoicing and manage client accounts with efficient built in email for invoicing. eFolio Accounts is all your business need.