In recent years, cloud accounting software has become increasingly popular and more highly discussed. Many businesses and individuals swear by it while others are apprehensive to give it a try (especially when they are already used to traditional accounting services). So, let's take a better look at how reliable they actually are compared to traditional methods.
The Traditional Method Of Accounting
Traditionally, working with an accountant has meant that you hand over any important financial paperwork and they handle everything though from bookkeeping and calculating profit and loss to your end of year tax returns. This has worked just fine and people have enjoyed being able to work with a trusted firm and having someone to speak to if ever they have any issues.
However, the very nature of this system lends itself to a few problems. It can be quite expensive to hire an accountant, and those just starting out might not know what to look for in a good accounting firm. As such, we have seen a massive rise in recent years in the use of the cloud.
Cloud-Based Accounting Services
Cloud-based accounting software, such as Xero, allows you to upload all of your company finances to a secure software solution which handles most of the complex calculations for you. They are especially popular amongst small business owners who don't feel like they can warrant the expense of an actual accountant but struggle to handle their books on their own.
Are They As Reliable?
If you are worried about the reliability of cloud accounting software, here are some key points to consider…
If you store all of your financial data on a single device, like a laptop, then you are prone to misplacing or damaging it and losing the data forever. That is not an issue if everything is stored in the cloud as it can be recovered.
Similarly, any data on a physical device is prone to hacking or other viruses that could erase it. When stored on the cloud, everything is backed up in multiple locations and stored separately all around the world, making it far more difficult to access.
Of course, you are still at risk to some extent; no method is perfect. Even if you still print and keep paper versions of your accounts, you risk these being misplaced or destroyed. But by backing up everything multiple times and safeguarding it with incredibly strong firewalls, data stored in cloud accounting software is highly secure.
Accessing The Best Of Both Worlds
We like to think of ourselves as a forward-thinking accounting firm. Ever since 2004, we have made use of the most advanced cloud-based accounting software available. We find this allows us to offer a superior quality of service to our customers. We can access the speed and cost-savings that come with cloud accounting software all whilst offering expert customer care.
If you ever have any issues or concerns, there will always be someone on our team who you can speak to. We are competitively priced compared with other accounting firms and offer a highly reliable and trustworthy service. We are always looking for new firms and individuals to help by taking over their accounting needs. So, to find out more, simply get in contact with us today.