The Advantages of Cloud Accounting

The advent of cloud accounting has been a much anticipated development, and is great news for businesses seeking advice or accountancy services.

With the capability to work in real time, cloud accounting enables both accountants and businesses to work with better clarity, making it easier to stay two steps ahead of the competition with streamlined processes and swift results.

We talk to Wilson Porter's own David Cochrane, Chartered Accountant and self-managed super fund specialist about what cloud accounting can mean for the future of Australian businesses.

The evolution of the accounting system

Cloud accounting is simply using the internet to post your financial data to a server that is maintained by someone else. Fortunately, for Wilson and Porter, that 'someone else' is MYOB.

As David explains, a common reservation about the cloud is data security, however, what people don't realise is the process is very similar to internet banking.

"MYOB is one of the largest accounting software suppliers in the world," says David. "They take this issue very seriously and have data security on a level with banking institutions."

One of the advantages with a cloud-based service is that there's no longer a need for businesses to physically install accounting software onto a computer.

As software is kept up-to-date by the provider, businesses won't have to worry about downloading and installing updates ever again.

A more flexible solution for accountants and clients

A cloud accounting system means increased flexibility, where users are able to access information anywhere, anytime on any device, not just the computer at the office. Additionally, data is also backed up regularly to a secure site, lessening the chances of data loss.
"As a practising chartered accountant, I find that it is more efficient process," says David.

"We can work directly on your file in real time, rather than the cumbersome process of clients sending their information to us, posting onto our system, and having to prepare an adjustment journal so both files are aligned."

Additionally, with a cloud-based system, businesses can set up automatic downloads of their banking transactions that are posted directly to the correct account in their ledger, which David explains can save both time and money.

"One of the benefits of cloud accounting is that I can review my clients operating results on demand," he says. "This means I can provide proactive and timely advice."

The ability to interact more with the accounting process – without the added effort associated with traditional systems – is sure to appeal to many businesses.

While some may have apprehensions about cloud accounting, it's easy to forget many had similar trepidations about the introduction of internet banking, which is now used globally by consumers and businesses alike.

We could go on, but as David puts it, cloud accounting is simply "one of the best things to happen to business owners in a very long time."