Skip to main content
Back OfficeOutsourcing

What is Cloud Accounting?

By 28 November 2022No Comments

You may not know this but every day you are using cloud technology in some form or another.

For example, you may share files using Dropbox or ShareFile, or maybe you use online office software like Google Apps or Microsoft Office 365. Any system that lets you access your data remotely is a type of cloud system.

Cloud accounting software works in a similar way. You use it just like normal accounting software, but with one important difference. Your clients’ data isn’t stored on your own computer, which enables it to be saved and stored remotely on secure severs, instead of it being, stolen or accidentally deleted. At Pendragon one of the many services we offer includes Cloud accounting via our ‘Your Back Office‘ management services.

This means you can access it from anywhere at any time – from a laptop, Smartphone or tablet. It means your IT costs are reduced and you’ll always have the latest, most secure version of the software.

Cloud accounting can increase your revenue:

  • Cloud accounting can make your business more efficient. It lets you see your basic accounting services more easily – and cost effectively. This means your staff can spend more of their time on lucrative work such as advisory services, consulting and new business development, rather than playing with accounts.
  • Companies using a fixed-fee pricing model tend to benefit the most when moving to the cloud. That’s because they cut their time spent on traditional services like bookkeeping, accounting and tax preparation. They can then focus on additional clients and projects, using the same number of staff.
  • All of this can strengthen your position. Instead of simply preparing financial reports and fixing data errors – you can be more aware of:
    – What the numbers actually mean.
    – Your financial position.
    – Your cash flow to make better business decisions.
    – Your growth and strategies accordingly.
    – Potential problems.

This type of advisory service is beneficial to small businesses – To move your practice to the cloud, here are a few things you should know.

Advantages of cloud accounting:

  • You can access your data at all times – not just while in the office
  • A physical storage centre is no longer needed – e.g. your software is “in the cloud”
  • It forces the user to get their data “house” in order – which in turn helps the users
  • One place to store your data, instead of searching through drives, laptops or other storage centres
  • Some applications have a pay as you go structure that only calls for payment when used – useful for cash flow
  • Potentially helps IT staff – lets them focus on other important business IT challenges
  • Can be pretty easy to scale – e.g. your business can add or take away storage depending on what you need

Some disadvantages to think about:

  • Loss of control as a result of handing over of your data/information
  • A dependence on others who in turn must ensure the security and confidentiality of your data and information – this can sometimes be a substantial risk
  • In some cases, if a Government is party to a case, the Government Entity can force the Third Party Vendor to release your data without notifying you
  • If your cloud host disappears, where does your information go?

For further information please don’t hesitate to contact us, book an appointment or reach us at [email protected] or 02 9407 8700 where one of our Australian team members will gladly help you.

Pendragon Team