One of the services Bizwize offers is Cloud Accounting. We’re happy to talk you through it any time, otherwise, here’s a great article by Lucy from Lawrence Group Accounting to explain some of the basics. – WizeOwl
Simply put, using ‘The Cloud’ means using storage location for your data that is looked after by a specialist technology firm, an example of which would be ‘Gmail’ is all on ‘The Cloud’ and is looked after by its parent company, Google (and the banks use ‘The Cloud’ for your finances too).
‘Cloud Accounting’ is therefore simple using the internet to access your accounting software.
This is modern day alternative to saving records on your own computer hard drive or server has huge benefits to business owners like you:
- Login and access your records on any device using the Internet
- A technology-savvy accountant can be given direct access which saves you time and effort
- This gives you even more flexibility as to how and when you spend time running your business, or to whom you can delegate the more mundane tasks
You as a business owner can then most importantly get the time for the more important things – how does an afternoon on the golf course or at a spa sound?
Why is it good for my business?
Cloud accounting saves you money as it manages and stores your data securely and remotely, so you no longer need to maintain expensive computer hardware, all you need is an internet connection! Plus, you have the freedom to access and update your information from any compatible device, anywhere in the world, at any time.
The Cloud is great at BAS and tax time. Because there is only one ledger stored in the cloud, the accuracy of the information is assured and errors are minimised. You and your business accountant now have access to accurate real time information, making informed business decisions easier. The less time your accountant and your bookkeeper have to spend on your returns, the less they need to charge you for their time….
Save that hard earned money! Your monthly access fee is invariably cheaper than the cost of buying the software and paying for annual subscriptions. And because cloud accounting software is automatically updated by the provider, you always have access to the most current information such as new tax rates and ATO information.
Can I trust the cloud with my financials?
These days we hear lots of chat about cyber security, and because the cloud means your data is stored remotely it may seem like a risk to some business owners. All myths busted – the cloud is in fact the safest way to store your accounting records making it the most sensible solution for your business. Billion dollar companies exist only because they look after data such as yours. You can be confident that they hire the best and brightest to look after that data…
Will it work for me?
Cloud Accounting is perfect for small to medium business accounting needs. It’s a great choice for people who are new to accounting or accounting software as the providers are keen to ensure that it their software is intuitive, i.e. that your best guess is usually the right answer. If your business is still manual record keeping, cloud accounting is the only sensible way forward. The next step up from this is to have all your internal systems linked via an ‘ERP’, which is still a cloud based system but is for the larger of Perth’s businesses.
I have a business accountant, so why do I need cloud accounting?
Any modern Business Accountant worth their salt will tell you that cloud accounting software is more efficient when it’s time to complete the end of year adjustments. The technology allows your accounts to be updated in real time with minimal interruption to your business operations.
Because the process is digital, you, your bookkeeper and your business accountant all have access to your files, ensuring you’re all on the same page. The cloud allows a technology-savvy business accountant to review your operational accounts at any time and simplifies planning ahead for tax purposes, the best ones can help you set-up notifications to alert you if you are straying away from your goals.
Importantly, as a business owner, a technology-savvy accountant who is linked into your software can provide proactive and timely advice on a range of issues impacting your business, ensuring your business complies with reporting and tax obligations.
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