Tony Bolger, Onshore Advisor at IMS Decimal, explains what cloud accounting is and how it can benefit your SME.
2006 saw the introduction of cloud computing. Cloud computing is defined as the delivery of computing services – including servers, storage, databases, networking, software, analytics, and intelligence over the internet (‘the cloud’).
Between 2006 and 2015, advances in cloud computing meant that we started to see some notable changes in the provision of accounting software:
Since 2015, further developments in cloud computing convinced many SME’s to transition to a cloud-based accounting platform. Software providers were successfully able to:
It is important to emphasise that both desktop and cloud-based platforms perform similar accounting tasks e.g. journal and bank entry, sales invoicing and receipting, purchase invoice processing and payment processing, expense management, forex management, consolidation, inter-company, and generating management reports.
But the similarities end there. Cloud-based software offers additional benefits that desktop software cannot provide.
Cloud-based software does have some disadvantages in comparison to desktop software:
The decision to transition to a new accounting software is often hindered by a business’ natural resistance to change. But with good planning, the transition process can be quick and simple, offering businesses the opportunity to:
Everyone agrees that technology, such as artificial intelligence, and increased data analytics will dictate the market.
But the availability of a wide range of accounting software for SME’s can make it difficult to choose.
It is important that businesses:
At the very least, businesses should commence a review process. This will help them decide whether they should continue to utilise desktop accounting software or whether they should transition to a cloud-based platform.
IMS Decimal provide outsourcing services to businesses who use both desktop and cloud-based accounting software.
We can help a business evaluate the suitability of their existing accounting software.
Here are some of the cloud-based software that we regularly use:
Built on a double entry accounting framework. Its robust accounting features enable small businesses to view their cash flow, transactions, and account details from any location. Bank transactions are all automatically imported.
Offers an attractive dashboard, true double-entry accounting with ample reports and strong accounts charts, as well as customisable invoices, inventory capabilities, payroll support, multiple currencies, and over 400 integrations.
Suitable for the larger business. It effectively enables companies with several subsidiaries, entities and business units to function using a single account, dealing with different currencies, taxation, and governance requirements.
With an attractive dashboard, this platform helps medium to large businesses manage accounting, invoicing, time tracking, manufacturing, and more.
Taking into consideration all of the above, it is no real surprise that the cloud is the clear winner in this battle with desktop. Cloud software providers have developed products which are incredibly easy to use and specifically cater to the increased mobility of businesses.
As technology continues its natural evolution into a cloud-based world, desktop software will inevitably fall behind. Whilst still enjoying all the benefits of desktop software, SMEs are experiencing a much more dynamic and flexible Accounts function through the world of cloud. If businesses are to keep evolving and remain competitive, it is undoubtedly in their interest to modernise their Accounts operation too.To know how do we manage our clients’ account software requirements, contact us today: email@example.com
Subscribe to our updates to receive the latest accountancy insights.