Cloud Accounting: what it is and why you should transition your business to it

More and more businesses are switching to cloud-based accounting software, for good reason.

So what is cloud accounting? 

Cloud accounting is a type of accounting software that allows users to access their financial data from any internet-connected device.

This means you can view and update your books from your computer, phone or tablet wherever and whenever you need to.

Cloud accounting has many benefits over the traditional legacy accounting style.

Perhaps the most obvious benefit is that it is much more convenient and accessible.  

With cloud accounting, you are no longer tied to your desk to hard copies of documents or spreadsheets full of transactions and financial data to do your bookkeeping. 

You can now do it from anywhere. 

In addition to being more convenient, cloud accounting is also more collaborative and efficient than legacy accounting software. 

Because cloud-based accounting software is accessible via the internet, multiple users like employees, bookkeepers and accountants can access and update the same financial data in real-time. 

You and your accountant can work on your books together without having to send files back and forth or wait for updates. 

Modern cloud accounting software and most Australian banks now work seamlessly together to support automatic imports of your business bank account transactions, to allow for automatic transaction categorization, and to speed up and simplify your bookkeeping.

Cloud accounting software also gives you the added benefit of being able to connect other apps to your accounting software, like:

  • customer proposal software,
  • receipt scanning software,
  • billing software,
  • financial reporting and forecasting software,

and pretty much any other software that uses your business’s financial data or interacts with your business’s financials.

Finally, cloud accounting is much more secure than traditional accounting software. 

Legacy software is installed on a single computer or server in your office, which means that your financial data could be compromised or lost forever if that computer is lost or stolen.

With cloud accounting, however, your data is stored securely online and can only be accessed with a unique username and password protected by bank-level encryption.

One of the most popular cloud accounting software programs today is Xero.

In our opinion, Xero is the best cloud accounting software for Australian businesses, which is why we use it at our firm.

At Float Accounting, we are Xero Certified Partners.

We are proud to offer full Xero transition support and training within our service offering.

We understand that switching to cloud accounting can be daunting.

Still, we’ll work with you to ensure a smooth transition for your business. 

If you’re interested in learning more about cloud accounting or transitioning your business to Xero, please don’t hesitate to contact us.

The information contained in this publication is for general information purposes only, and does not take into consideration your individual circumstances. You should obtain personalised professional advice before acting upon any information contained herein. To the maximum extent permitted by law, we accept no responsibility for any loss incurred by any person directly or indirectly due to any action taken or refrained from as a consequence of the contents of this publication.

About The Author

Dan Sova
Dan is Co-Founder and the CTO of Float Accounting.