What Is Cloud Bookkeeping and Why Do You Benefit From It?

 

Ultimately the decision is yours. But here is some additional information for you to consider. We offer a traditional bookkeeping service in those locations where we have a physical presenece. We offer the virtual or cloud alternative (which we believe to be the better solution) wherever you may be located in Canada. 

Cloud Computing and Cloud Accounting

 

What is cloud computing?

 

Cloud computing is the use of computer hardware and software applications delivered as a service over the Internet. It allows you to store files and use applications using many different devices and from many different locations in a simple way.

 

There are a number of different ways that the Internet infrastructure can be used to provide services including accessing applications using a web browser. If you’ve used internet banking before, you are probably familiar with this type of service. Applications delivered this way are sometimes referred to as “Software as a Service”, or SaaS for short. 

 

What is cloud accounting?

 

Cloud or online accounting serves the same function as accounting software that you would install on your computer. But it runs on someone's servers and you access it using your web browser, over the Internet. Your data is securely stored and processed on servers—or “in the cloud”. You can access your business's information from anywhere and using any device, as long as you are connected to the internet.

 

In addition to the flexibility of accessing your data from anywhere, you never need to install software on any device and updates are automatic.

How Do We Actually Do Cloud Accounting?

 

Cloud computing refers to transactions performed over the Internet. The practice does not require you to install software in your computer or own a server. A cloud computing company that sells accounting services provides remote servers and the applications. For a fee, they grant you online access to them for managing and maintaining your accounting records.

 

Virtual Bookkeepers

 

A cloud bookkeeping company eliminates the need for you to hire a physical bookkeeper. The Internet service acts as a virtual accounting manager, categorizing your financial transactions according to generally accepted accounting practices.

 

Cloud vs. Traditional Bookkeeping

 

Cloud bookkeeping firms follow the same standards as traditional bookkeepers. The tools are different, but the rules they abide by are the same.  But the systems are more flexible in that your cloud bookkeeper may be located anywhere. They are not limited to their physical location.

 

A computer and Internet connection are the only can’t-do-without investment. And your virtual bookkeeper is open for you to input new information or generate a report any time of day, while a traditional bookkeeper has limited work hours. So you have a resource that is available to you whenever you need it.

Why Use The Cloud Instead?

 

There are a number of reasons why cloud computing is so widely used among businesses today:

 

 - Reduction of costs – unlike on-site hosting the price of deploying applications in the cloud can be less due to lower hardware costs from more effective use of physical resources.

 

- Universal access - cloud computing can allow remotely located owners and employees to access applications and work via the internet.

 

- Up to date software - a cloud provider will also be able to upgrade software keeping in mind feedback from previous software releases.

 

- Choice of applications. Cloud users have the flexibility to experiment and choose the best option for their needs. Cloud computing also allows a business to use, access and pay only for what they use, with  minimal implementation time. 

 

-Security-your data and files can be stored more securely than paper based systems. Paper degardes, the cloud keeps you data in its original state. No more concerns about fires, theft or loss of documents and data (subject to the requirements of the Canada Revenue Agency). Servers are actively monitored and maintained, and have a much higher level of security than many small business networks and laptops.