Why Cloud based bookkeeping software?
Over the past 12 months, at DG Accountancy Services it hasn’t gone unnoticed that more and more clients are switching from traditional local desktop bookkeeping software packages to Cloud based packages instead. In this article we try to understand what are their reasons, what the benefits maybe and are there any downsides to this platform.
What the clients say
Many of the clients that we have spoken to link the switch to Cloud based bookkeeping with the developing options offered by mobile devices, and their need to be portable, offering them more flexibility.
Simplicity and ease of use were also common statements, liking the fact that many packages now offer an Application as well as the internet based option.
So what are the advantages?
- It is fair to say that many of the Cloud based packages we have seen are much more simplified versions of the local desktop based packages. Many people looking to maintain their own books feel confident using the software due to its deemed “more user friendly for the layman” qualities.
- With business owners feeling confident in maintaining their own books, their bottom line profits increase also. The task of bookkeeping may have previously been given to their accountant who would charge for the service provided.
- The ability to access the software from any device that has internet connection is big plus. This offers greater flexibility for the user and allows them to fit the bookkeeping around the busy day to day activities. Staying late at the office, or having to remember to back up to a portable storage device before taking your work home, is no longer required.
- With the data being held in the Cloud, clients can give their accountant access to the records. This will provide the user with the opportunity to contact their accountant to discuss their finances, with the accountant looking at real time data. The accountant can be a lot closer to your trading performance, rather than waiting until the year end, by which time, opportunities for tax savings may have been missed.
So are there any disadvantages?
- No disadvantages as such, but there are certainly some aspects to consider, for instance, if you have breakdown on your internet connection, you are likely to lose access to the live data, and not all Cloud based packages have an offline option.
- From a security perspective, particularly if you use your mobile devices, you must ensure that your devices have up to date security/firewall/anti-virus software installed.
We believe that the upsurge in Cloud based bookkeeping packages is a positive step forward. However, the package that you use will be dependent your individual circumstances. In many cases, a local desktop based solution will still be the ideal option.
If you are looking to procure a bookkeeping software package for your business, why not give us a call to discuss the vast array of options available to you.