The Basics, And How It Will Impact Your Finances

Author: Paul Cantelli

Cloud computing might sound mysterious -- and even a little too vague -- to be trusted with your company’s critical financial information. The term evokes images of some remote, intangible, impersonal mass where your data is bound to get lost.

It's an apt description, since it refers to something far away. But don't let its negative connotations dissuade you from exploring cloud-based bookkeeping for your business accounting needs, as it can have significant impact on your efficiency and bottom line.

The basics

Cloud-based systems simply utilize the Internet to provide access to your data on remote servers, as opposed to using your own hardware. In this virtual accounting setup, business software is accessed via a web browser rather than residing on your desktop or laptop. All upgrades, maintenance and storage tasks are handled by the hosting firm, the service provider.

The benefits

Some of the most significant benefits of cloud computing are:

• Access to your data from anywhere in the world, 24/7. You'll never lose touch with your financial records, and employees can work remotely.
• Cost savings
• Greater efficiency in sharing information with stakeholders
• Regular off-site data backups
• Secure data encryption

The financial impact

Trusting your data to the cloud can save your business money in the long run. Software is maintained by the hosting company, reducing the expense of licensing new applications and using IT staff to install them. You'll eliminate the downtime caused by local upgrades and the inevitable fixes. Hardware costs can be dramatically lowered, as all you need is a web browser and an Internet connection to work within the cloud. Although not as easy to quantify, savings might also be expected from an increase in both staff and financial reporting efficiency.

Cloud-based accounting can greatly reduce your workload and expenses if correctly matched to your company's needs. At The Tax Office, we can explain how our cloud-based accounting solutions can mesh with your existing operations to save you money and allow you to focus on growing your business. So contact us today. We would love to work with you to design a simple, effective virtual accounting solution for your company.