You’ve probably heard it by now, that ambiguously popular buzzword: the cloud. Talked about across many sectors, and found in new, cutting edge breakthroughs, the concept of the cloud is fundamental in how business and technology are changing forever.
The “cloud,” at its foundation, is a series of servers. Each server has its own unique function and different companies use the cloud for different purposes. Some, like iCloud, Google Drive, and Dropbox use the cloud to store data for customers, while other companies use the cloud’s capabilities to deliver a service. Companies like Xero use the cloud to deliver a new form of cloud-based accounting, making the accounting tools and services you require available when and where you need them.
But what’s so special about cloud-based accounting?
By using the cloud to offer online accounting services, the cloud removes your hard drive as the main storage space and operating platform of your company’s financials, changing when and how you and your employees access them. Because of this, cloud accounting transforms the accounting process, accessibility, and security.
The entire accounting process is streamlined on the cloud with features like easy-to-send online invoices, recording receipts by simply taking a picture with your phone, and simplified banking reconciliation to match company records with bank statements in real time. While they may sound simple, these functions can eliminate countless hours of tedious work and worry.
In addition to the basic process, cloud-based accounting totally revolutionizes accounting accessibility in your company. With older forms of desktop accounting software, financial information was immobile and often only available to a select few employees. In cloud-based platforms, accounting numbers and budget projections can be accessed immediately, anywhere, by anyone you choose. This greatly enhances not only your company’s workflow but also its day-to-day accountability, both to each other and to your company wide goals.
Cloud-based accounting services like Xero also have seemingly endless capabilities to work with the other third party apps you may wish to use. With an open API (application program interface) structure, the tools and protocols of Xero work to make sure your other applications like PayPal, Square, or Evernote work naturally with Xero.
Cloud-based accounting enables better security. While many fear using the cloud for managing their financial data because of its perceived lack of data safety, the cloud is actually much safer. Because the data isn’t stored on one hard drive, your cloud data is consistently being backed up and protected from being lost in any sort of natural disaster, hardware malfunction, or stolen equipment. Cloud data is also regulated by the same security and privacy laws that online banking are subject to, so if you’re engaged with online banking already, you’ll be trusting the same type of platform with cloud-based accounting.
If you’re ready to make the change to cloud-based accounting, contact us for a Xero consultation to get the most out of your accounting experience.