Cloud-Based Accounting Has Many Advantages

Author: Keith Huggett

Still unclear on the concept of cloud-based -- or virtual -- accounting? It simply means sharing applications and data over the Internet.  Instead of residing on your PC's hard drive or network, your financial software and records are stored on remote servers maintained by your provider. This is also called hosting.

There are numerous advantages to managing your business accounts this way; here are the top three:

Virtual accounting allows access from anywhere, 24 hours a day.

Need to pull up some numbers while on a business trip? How about share real-time financial data with business partners and employees located across town or many miles away? Cloud-based solutions allow 24/7 remote access to your data by anyone with a web-enabled computer or supported mobile device and login credentials. Your CPA can perform analysis and reporting  for you without leaving his or her office.

Cloud computing is easily scalable.

The host company handles the physical infrastructure in virtual accounting systems, and can quickly allocate resources like storage and processing power as your business needs grow. Hardware issues are no longer a matter for your internal IT staff to handle, and it only takes a few clicks to add or remove users in a cloud-based software system.  Contrast this with the hours -- or even days -- it might take an inhouse IT professional to install the hardware and software needed to set up new users.

Data security and regular backups exist in the cloud.

A reputable cloud solution provider will use 128-bit data encryption and offer antivirus and firewall protection. It will also perform regular backups to ensure that data is fully recoverable in the event of a disaster. An added plus: Software upgrades are automatically handled by the vendor, and you don’t have to worry about maintenance.

Cloud computing can be a daunting subject at first glance. At The Tax Office, we will gladly take the time to explain how our virtual accounting solutions can mesh with your existing operation and allow you to focus on growing your business. Contact us today; we would love to work with you to design on an optimal solution for your company.