Cloud based bookkeeping may seem to just be a new fad. However, the harsh reality is that this is soon going to be the norm. Even if you choose to work with pen and paper on daily basis, you will still need an electronic representation of your data. Likewise, the software you use will probably need some kind of cloud connectivity. Here is a deeper look at why cloud technology is important to your bookkeeping.
What is the cloud in the first place?
In simplest terms, the cloud refers to servers designed specifically to hold data. These servers make the data available anywhere in the world. There are special precautions taken to ensure the data is safe. For example, there are backups and security checks. In many cases, the cloud server will be placed close to your location. The servers are managed by specialize companies.
Why does this matter to me and my business?
The most important benefit is that the cloud gives you flexibility. You can move to any physical location and access your information. This means, your accounting department can be located miles away, if that’s what you want. It also means you can work from home, an office, or a cafe! The cloud, essentially, gives you freedom of movement.
Another benefit is that of added security. If you store your financial data on a computer, an accident could destroy it all. Even if you have backups, you may still find yourself struggling to restore the data. On the other hand, the cloud allows you to focus on your business. All the backups are done silently for you. You can go and put your attention on your business, rather than fighting with technology.
Communication is another key. You can share important information with just a few clicks. You don’t have to send paperwork – just send a link to whoever needs it. Most application allow you to add several users. You can restrict how much information each person can access. You also control what they can edit or modify. In effect, you can make decisions with your team faster than you would using the traditional work flows.
There are many more benefits to cloud based bookkeeping. The best way to learn about it is to try it out. You can go for a low risk option to see how it works for you. You’ll be pleasantly surprised at how much easier your life will be.