Jan 01, 2018
What’s Cloud Accounting?
The cloud is a platform to make data and software accessible online anytime, anywhere, from any device. The word cloud (also phrased as “the cloud”) is used as a metaphor for “the Internet,” and it means “a type of Internet-based platform,” where different services — such as servers, storage and applications — are delivered to different computers and devices through the Internet.
Cloud accounting is the practice of using an accounting system that’s accessed through the internet. For accountants it simply means that all their traditional accounting applications are moved to the cloud (internet), making it easy to collaborate, share and work efficiently.
Traditional Accounting Software — a chore to use.
Business accounting software that’s not available via the cloud can be tedious. Traditionally, it can suck up far too much of your business’ time and effort when it comes to establishing outsourcing logistics. This doesn’t add value, and takes the fun out of being in business or establishing outsourcing for your business. Cloud software can save your company time, money and efforts in every aspect.
Problems with traditional accounting software.
- The data in the system isn’t up to date and neither is the software.
- It only works on one computer and data bounces from place to place. For example, on a USB drive. This is not secure or reliable.
- Only one person has user access. Key people can’t access financial and customer details.
- It’s costly and complicated to keep backups (if done at all).
- It’s expensive, difficult and time consuming to upgrade the software.
- Customer support is expensive and slow.
Cloud Ready, Outsourcing Ready.
Back in the days, lot of accounting firms and accountants could not embrace offshoring due to the logistical challenges. At times, companies were not equipped with right server or simply didn’t have the energy to send software backups back and forth. There were few, who were concerned and uncomfortable with providing access to any outsider on their server due to confidentiality of data.
On the contrary with cloud now, the ball game is different.
You are ready to go live at any given point of time. You don’t need to provide remote desktop connections or provide any software backup to outsourcers. You just need to provide a user id to them for the access & that’s it…
So if you are cloud ready, you are outsourcing ready.
SandMartin has enormous expertise on various cloud based software by virtue of our experience in dealing with 50+ Accounting firms and in fact if you are still not ready with your cloud strategy. We would be happy to assist you & if you wish we could train you up..
Transition to the Cloud.
Step 1: Timing.
Out of the frustrations that businesses face when transitioning to cloud systems, the one that stands out is the issue of timing and the importance of ensuring you get this right for a smooth transition. The SandMartin team suggests two recommendations which are as follows:
- Where possible, align it with your Financial Year End – go by the saying ‘new year, new system’, this will make things a lot easier.
- Keep your Quarterly Return (VAT/BAS/etc.) periods in mind – if the Year End is too far away consider aligning it with the end of your Quarterly Return period. Again this will mean that your tax reporting is all contained within the one accounting program and you won’t have to use two separate systems to complete your Quarterly Return.
Step 2: Start using cloud solutions.
The best way to learn any new technology is with hands-on experience, and cloud accounting is no exception. What’s better than having an expert to give you the experience? Hire a Cloud Accountant, with SandMartin, who can help you with:
- Transition from traditional accounting software to the cloud software which helps you in business transformation.
- Help you with expert level bookkeeping in any cloud software.
- Train you on peripheral apps of cloud software like Receipt Bank, Spotlight, etc.
Step 3: Identify ideal clients.
Once you’re comfortable using cloud accounting software, you can roll it out to some of your clients. Choose carefully, to keep the migration process as simple and straightforward as possible, and choose on the basis of following criteria:
- Business profile
- Tech usage
- Clients to avoid (typically Non-IT savvy clients.)
As per the Accountex 2017 research, >90% of the business will move on to cloud, as part of their business strategy.
Numerous UK/US/Australian accounting firms have leveraged our cloud expertise, why not you..
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SandMartin is one of the longest established outsourcing service supplier serving Accounting firms in the UK on virtually all accounting processes from last 15 years and currently have a roster of satisfied Accounting clients. We are covered of up extensively by international Accounting Journals & Magazines including JOFA, Accountancy Age, Corporate INTL, etc. for our outsourcing capabilities.