Generally when people hear the word ‘accountant’ they immediately think of year ends, taxes, CRA and shoeboxes filled with receipts and bills. But now, accountants fulfil a more valuable role for small businesses with the help of cloud-based accounting technology.
So what is a cloud-based accounting?
“Cloud accounting software is similar to traditional, on-premises, or self-install accounting software, only the accounting software is hosted on remote servers, similar to the SaaS (Software as a Service) business model. Data is sent to “the cloud,” where it is processed and returned to the user.”
10 Benefits of Being in the Cloud
- State of the art security at a fraction of the cost because cloud-based systems employ teams of personnel who are constantly monitoring and securing data.
- Adaptability – Cloud-based accounting solutions are not installed on your workstation.
- Compatibility – all users are on the same version and the systems are 100% compliant with all accounting and internal control standards.
- Mobility – you can access your information from anywhere via the internet, either on your phone or computer.
- Costs and commitment – most providers have a free trial period so you can test the technology before committing.
- Add unlimited users at no additional cost.
- Storage – your monthly subscription covers all your requirements, back-up and restoration are automatic with this system.
- Efficiency and accuracy – the system automatically updates all related journals and ledgers if you change a number.
- Integration – the software integrates with many apps to save you tons of time on data entry.
- Pay as you go – so no huge upfront investment required.
Xero and QBO are two of the more popular cloud-based accounting software solutions offering all the advantages listed above, check out these links to learn much more:
So who are the best candidates?
Start-ups, small and medium-sized businesses have the most to gain from adopting cloud-based technology because flexibility and scalability are especially important to these types of companies.
The cloud gives smaller firms the ability to effectively leverage the kind of processing power previously available to large companies with larger budgets.
Accountants adding value
With this technology, accountants can now add value to your business by providing meaningful advice to empower you to make better decisions. Your information is current and available so your accountant can monitor your numbers to find efficiencies in your business and advise where you can improve. Your accountant will still let you know how much tax they are saving you but now they have the information to help your business truly succeed.
Caminie Mahadeo, CPA CGA is a Sloan Associate with expertise in the film and television industry. She has a passion for small business and entrepreneurs and enjoys helping them to successfully grow and sustain their businesses. For more information, contact Caminie by email.