What is Cloud Bookkeeping and why am I the last to know!
Updated: Aug 2
BrightBooks recently attended an online conference and learned that Intuit (developers of QuickBooks) predicts that 78% of small businesses will rely on cloud technology by 2020!
That is a huge leap from being tethered to a file cabinet and paperwork.
What is cloud bookkeeping
Bookkeeping traditionally consisted of keying transactions into a dedicted desktop software, which was stored on a dedicated server or hard drive. Sharing that information (with external users such as accountants or auditors) required a lot of backing up and restoring of data. Fingers crossed no one made changes while the coveted "backup' was out there!
Cloud bookkeeping in its simplest form, allows the data to be updated free-flowing and housed online. This ensures all users have access to accurate data in real-time. Bank accounts are updated in the now, AR and AP are accurate reflections of current actvity, and cash flow is known; and not surmised.
What are the benefits of cloud bookkeeping
Cloud bookkeeping provides the ability to automate many manual accounting and bookkeeping processes; allowing time to analyze financial data.
The freedom to access the data in real-time, which allows the bookkeeper, client and accountant to work as a team.
The ability to make real-time decisions, rather than waiting on a monthly closing process to hold meetings with financial directors.
Cloud bookkeeping fully facilitates collection of receipts on the go! Most point of sale programs integrate with cloud software so that users may swipe and process payments immediately.
To facilitate a paperless environment. This will eliminate the need to physically store and manage paper documents, which is not only beneficial from a cost and office space perspective, but also for the environment.
The ability to reduce costs. Cloud-based software does not incur the costs associated with traditional software (including maintenance, upgrades, system administration, etc.).
The springboard to integrate with other cloud solutions. These integration capabilities will improve the efficiency and increase the power of your cloud accounting technology stack.
Is the cloud secure
When compared to traditional desktop accounting software, which could be compromised if a company computer is stolen, lost, or damaged, cloud accounting software has many security advantages. Each cloud accounting solution should have its own security policy outlining how it protects sensitive data. Most solutions use state-of-the-art measures such as multi-factor authentication and encryption, ensuring sensitive data will remain secure.
What is cloud software
There are many up and coming cloud software companies. Intuit's Quickbooks Online and Xero are time-tested versions that bookkeepers feel comfortable using. There are many options to explore with apps that can help you automate your processes and achieve a steady and safe workflow.
What can BrightBooks do to help me get cloud friendly
BrightBooks is here to help you every step of the way in achieving cloud success; from our IT specialists, who can assist in choosing software to our expert bookkeepers, who can help you process your weekly, monthly and annual financial data. We strive for a completely real-time environment so that you may access your cash flow data any time. We provide training so that you are part of your bookkeeping team, and we work closely with your CPA to ensure your records are current, accurate and quality!