The Cloud and Cloud Accounting
What is the Cloud? The easiest way to illustrate the answer to this is, think about when you access the internet, go to your bank’s website, and log in to your online banking. Each time you access your banking data online, congratulations! You’re using the cloud! The cloud is the exciting platform allowing data and software to be accessible to it’s users on the internet, anytime, anywhere, from any device. The hard drive on your computer is not the central hub. The accounting software is no longer installed on your computer; rather, it is in a private space online, so that it is accessible to you via a browser or secure remote connection.
There are primarily two ways to have your accounting system in the cloud. It can be “hosted” or you can switch your accounting software to an online system, i.e. SaaS, which stands for “Software as a Service”. Examples of online accounting systems include QuickBooks Online and Xero.
The hosting way:
The system will run on a vendor’s data center, not on your servers. No more backing up for you! The vendor provides maintenance and support. The only thing you do differently once it’s set up is click a different icon to start the software. Once you log in, most everything else is the same. But the difference is convenience. Whomever you choose to grant access, will have the ability to log in to your company file from anywhere. It eliminates the passing around of the file. Your Bookkeeper, CPA, and anyone else needing to access your accounting file can log in from anywhere, and start working.
The Online System way:
These systems have fewer features and will only be right if your need is for a simpler accounting system. When you switch from desktop accounting software to SaaS, it’s a big change. It will likely require conversion, setup, and training. But you won’t need to install software and the updates are automatic. SaaS typically involves a set fee per user, per month, so costs and the functionality offered tend to be fixed.
There are many benefits to moving to the cloud besides the anywhere, anytime access, such as integration with other cloud applications and banking software, updates and backups are done by the hosting provider or the SaaS, immediate access to upgrades, and tighter security for your data. I’m talking huge data centers, with multiple state-of-the-art data security controls that must pass a rigorous audit, which is far more protection than any small business can afford to provide for their own data. Also when you are doing your accounting in the cloud, your Accountant is able to work with you in the same data file, at the same time. No more sending back up files back and forth or Accountants copies. If you have a question or an issue with your accounting, your Accountant can quickly log in to your Saas accounting software and help you and see exactly what you are seeing.
Cloud Accounting or, “online accounting” is on the rise in today’s business world. Join us in the Cloud – Dailey Bookkeeping Sevices “Your Accounting Team in the Cloud!
Dailey Bookkeeping Services is a Xero Certified Bronze Partner and a QuickBooks Online Certified Advisor, so if we can help you in your transition to the cloud, just give us a call, we would love to help you! The owner, Jacqueline Dailey is a Certified Public Bookkeeper, an Advanced Certified QuickBooks and QuickBooks Online ProAdvisor, a Sleeter Group Certified QuickBooks Consultant and a Xero Certified Bronze Partner. We work remotely so we can work with any company located in the U.S. If we can help you with this process or provide you with custom reporting, please give us a call. If we cannot help you, we will refer you to someone who can! Feel free to visit our website at http://www.daileybookkeeping.com.