What Is cloud accounting?
Cloud accounting software is an internet based accounting program which provides you with a tool to manage your finances and tax affairs in an organised manner. Think of it as Netflix for Accountants and Bookkeepers.
What are some of the benefits of setting up a cloud accounting system?
1. Lower cost
Put simply, setting up a cloud accounting system provides efficiencies; efficiencies save you money.
The longer it takes for your Accountant or Bookkeeper to process and review your information, the greater the cost to you. We strive to streamline this as much as possible.
If you provide your accounting data via an offline accounting file, spreadsheet, or shoe box of documentation for your Accountant to input into a spreadsheet, this comes at a cost. The cost is often much greater than having the right system in place to begin with.
Having your data in a cloud accounting software program provides you with reports to make better financial decisions which is readily available. This provides insights into what is working and what could be improved on a real time basis.
2. Business activity statements
The preparation and lodgement of your Business Activity Statements are streamlined due to data being organised in the appropriate format to lodge.
Cloud accounting minimises the time to fix errors compared to data that is stored in spreadsheets.
3. Technology updates
Your cloud software is constantly being updated and backed up with no down time which means you don’t need to maintain expensive computer and backup systems to ensure your data isn’t lost.
The government is increasingly implementing greater compliance regulations such as single touch payroll, superannuation guarantee payments and e-Invoicing to name a few which is becoming more costly to manage if you do not move online.
4. Managing and automating your data
There are hundreds of tools and apps now available which “integrate” with your cloud accounting software program to manage important areas of your business. These include:
Bank feeds provide transaction data automatically into your accounting program which eliminates data entry time.
Apps to manage your proposals, invoicing, debtors and collect payments.
Apps to manage suppliers and payments.
Apps to automate your expenses (record keeping) and store your documentation electronically reducing time to input this data.
Apps to manage your inventory.
Apps to manage your employees and payroll.
Apps to manage your customer relationships.
Apps to analyse and benchmark your data.
Apps to report your buy/sell share portfolio data.
You get the point! all these applications can minimise the time required to manage these business functions which in turn saves you money.
If you can think of an area of your business which needs an application, more than likely there is a solution out there.
Check out the following link to see which apps are available https://www.myob.com/au/apps
5. Tax deductible
The great thing about setting up an online accounting system to manage your tax affairs is you can claim it back as a tax deduction in your tax return.
Is my data secure in the cloud?
An important factor to consider is your data privacy and security. The cloud accounting software providers are responsible for this and have implemented appropriate protection measures such as two factor authentication, user access logs and high levels of security at the server level to protect you.
Can non-business owners use cloud accounting?
Yes, we have set up cloud accounting software for clients who wish to understand their personal finances better to achieve various goals such as purchasing their first home, begin investing, save for a holiday, tracking their deductible expenses for end of year tax returns or how much are they spending on lifestyle costs such as mortgages, loans, council rates, insurances, utilities, education, health, shopping and eating out.
Understanding your income and outgoings allows you to build financial discipline which can be used to achieve your financial goals.
What cloud accounting programs are available?
In Australia, the most commonly used programs used are MYOB, AgData Phoenix, Xero, Intuit, Quickbooks, Agrimaster, BGL to name a few.
Can you help set up and manage all the processing for me?
Yes, we can set up and manage the processing whilst providing you with valuable insights into key areas you should be focusing attention on to achieve your financial goals.
We are currently offering a promotion in which we will set up your online accounting software free of charge if you reference this article.
Thank you for taking the time to read our article. Contact us if you need help setting up a cloud accounting file.
Disclaimer
No person should rely on the contents of this publication without first obtaining advice from a qualified professional person. This publication is for discussion and education purposes only and the editor is not responsible for the results of actions taken on the basis of information in this publication, nor for any error or omission from this publication. This editor expressly disclaims all and any liability to any person, including reader for any part of this publication.