As the usage of “the cloud” grew more popular among industries, the accounting field joining the wave is not really a surprise. However, if you’re a business owner without much tech saviness and have decided to read an article about cloud accounting, you’d have a bit of a rough time.
While the majority of articles are quite informative, they use complicated terms and phrases that are mostly understood by tech junkies only.
This is why we’ve gathered the most important and basic information, replaced all the complicated phrases with normal English, and voilà.
Cloud Accounting Vs. Traditional Accounting Software
To begin with, we need to define cloud accounting. In the simplest of terms, it is a type of software that exists in a magical area called “the cloud”; known to normal people as, the internet.
While a company can install regular accounting software on their computers, and perform all its operations between the four walls of their building, cloud accounting is the exact opposite.
All you need to do is subscribe to a cloud-based system and upload your data; all accounting operations will be done on the server. In contrast with traditional accounting tools which require storing all data on a computer’s hard drive, cloud-based tools operate online. In other words, all financial data is stored; and can be retrieved, online rather than only on a hard drive.
How Developed is the Field of Cloud Accounting?
Despite being a relatively young field, it is quite developed. In fact, there are several cloud-based accounting software developers who are actively competing with each other.
In the battle of Xero vs QuickBooks, the industry’s top competitors, you’d find that the two offer a number of advanced features that reflect the state of the industry.
Not only that, but it has also been proven that cloud-based accounting takes a lot of pressure off of business. It reduces their costs and makes accessing financial data quick and easy via the internet.
The Everlasting Question
Is cloud-based accounting safe? Don’t pretend that the question hasn’t been eating you on the inside. Luckily, the answer is very simple. Yes, the cloud is perfectly safe. There is actually no reason to ask such a question in the first place.
After all, we constantly use another cloud-based service; like Amazon, online banking, Expedia and social media platforms, without questioning them.
Not to mention, such tools that handle sensitive data usually encrypt their data using complex encryption keys; it would take an insanely long amount of time to decrypt the codes to get to the actual data.
So, to wrap up the content of the article in those last few lines, cloud accounting is a type of accounting software that exists on the internet cloud. The data is uploaded to secure host servers were a highly developed software carries out its operations.
Depending on the features your software of choice offers, you can manage your inventory, organize financial data, and access all your information from anywhere. Finally, as for the matter of security, all data is encrypted to guarantee complete confidentiality.
Cloud security is a world class
As a small business owner, you can be concerned about a cloud provider that stores your data. But one of the safest ways to collect information.
For example, if your laptop was stolen you can use cloud software, no one can access your data without online access. With Cloud software, it’s here, not just because your data is located.
In the case of a natural disaster or fire, the cloud does not have to be in labor productivity, because there is no downtime in the cloud.
Your information is stored securely and securely. When you have access to any computer or mobile device connected to the internet, you are back in action.
If you also call users to view your data, you can determine the size of the access. It is safer than the previous way to email your files or send a USB stick to your data.
Cloud-based software companies ensure that your data and the safety and privacy of your company are always under control. If you use an online bank, you are ready to use the cloud account.