Why should I convert to Cloud Based Accounting?
Before you can consider the benefits of Cloud Based Accounting you first need to understand what it is and how it differs from historic accounting systems.
Up to the early 2000’s it was common practise for bigger business to have an elaborate accounting and operational system. This system was expensive to purchase and to maintain. This typically ran on an in-house computer system with manual backup processes in place. Smaller businesses did not have access to such a system just because it was unaffordable. They ran a typical POS (point of sale) system and on a regular basis engaged an accountant to “write up the books”. Originally this was a manual system, but later accounting software became available. This software was typically developed by accountants for accountants and very user unfriendly towards the general business owner.
With the growth of the internet and computing power a new accounting solution was developed. This solution is available 24/7 with close to real time information. The user interface was adjusted so that non-accountants could also understand what was required. Concerns about backup and having sufficient computing power was removed. Issues relating to regular upgrades (as laws changed) to accounting systems for which you needed somebody with sufficient IT knowledge was addressed. The biggest change however came with the fact that the current systems are more affordable.
Your accounting system is internet based and the only software you need is your web browser. The operating system (Windows/Linux/Apple) is irrelevant and the system work seamlessly between the different computers. Since your data resides in the cloud, you do not need to be concerned about backups either. One of the biggest advantages is that you do not need to be office based to access the system.
How can it work for my business?
Utilising a cloud accounting system such as XERO gives you access not only to an accounting system but also to a lot of other potential add on programs. In the past this was only available to companies with big IT budgets. You do not need n inhouse accountant either. Since the accountant can access the system from anywhere you can make sure you get the best accountant for your business. This is especially important in our current COVID19 way of life.
You can contact PPHC Global Inc if you need more information. XERO is our cloud accounting system of choice and we are XERO certified advisors. Make the change to cloud accounting, it makes business sense.