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November 3rd 2020 / BY: Wisteria

The Benefits of Cloud Accounting and Why Xero Is the Market Leader

In the past few years, cloud technology has had a huge impact on our day-to-day lives. We watch videos on YouTube, post photos on Instagram and pay our bills using online banking. In the corporate world too, cloud-based solutions are becoming increasingly important. One service, in particular, is transforming the way we do business. Cloud accounting, as it’s known, is helping organisations cut costs, free up valuable resources and streamline their financial procedures. In this article, we take a closer look at cloud accounting software and explore some of the benefits it can have for your business.

 What Is Cloud Accounting?

 Unlike traditional accounting packages that are installed on your desktop, cloud accounting software is hosted on remote servers and accessed via the internet. With cloud accounting, you’re no longer shackled to your desk. You can log in anytime, anywhere and view your financial data. All you need is a web browser and an internet connection.

 What Are the Benefits of Cloud Accounting?

Cloud accounting can reduce your operating costs, improve your business processes and help you work faster and smarter. Here are some of the benefits of storing your financial information in the cloud:

  • Cost effective – With traditional accounting systems, you have to install software on multiple devices, store the information on in-house servers and pay an IT technician to maintain your network. When you’re working in the cloud, updates and backups are performed automatically and all your data is stored remotely, saving you time and money.
  • Accurate – Cloud accounting software updates your records automatically and provides financial reporting in real-time. By switching to the cloud, you can cut out human error and ensure your account balances are accurate and up to date.
  • Secure – Cloud accounting solutions provide a safer, more secure home for your data. Sensitive financial records are no longer stored on hard drives or office servers, so if your network is hacked or your laptop is or lost or stolen, you needn’t worry about critical information falling into the wrong hands. All your financial records are encrypted at source and saved to the cloud, so only yourself and selected members of your team can access the data.
  • Connected – Unlike traditional software, cloud accounting enables you to access your financial data wherever you are in the world. You can share up-to-the-minute information with colleagues, partners and advisers and view financial records in real-time.
  • Economical – Cloud accounting can help you create a paperless office and ensure your day-to-day bookkeeping procedures run more efficiently. Invoices can be emailed directly to clients, and bills and receipts can be scanned and saved. Also, because all your records are digitised and stored in the cloud, paper originals no longer need to be filed, freeing up time and office space.

 Why Xero Is the Market Leader

 Once you decide to make the switch to a cloud-based system, it’s important to choose the right provider. While familiar names like Sage and QuickBooks led the way in the provision of cloud accounting software, in recent years, New Zealand-based tech firm, Xero has become the benchmark. Here are just a few reasons why Xero is fast becoming the market leader:

  • It offers professional double-entry accounting at an affordable price, and it comes with a free 30-day trial so you can try before you buy.
  • It has a clean interface, it’s simple to use and gives you instant visibility of your financial position.
  • It provides real-time bank feeds and bank reconciliation.
  • It allows for unlimited users.
  • It integrates seamlessly with third-party apps and plugins and it’s scalable, so it will grow with your business.

For more information about cloud accounting software and how it can transform your business, speak to one of our financial experts.