What is Cloud Accounting?

What is Cloud Accounting? A Beginner’s Guide

There are a lot of jokes about using Excel and our favourite one at Zervant is “you never finish a spreadsheet, you just stop working on it”. It’s not our favourite because it’s the funniest (none of them are, really), but it’s one of the most accurate in the world of accounting. But things are changing! Cloud accounting is becoming increasingly relevant. What is it? And how can it help small businesses and entrepreneurs?

What does ‘cloud accounting’ mean?

Before answering this it might be handy to take a step back and define what we mean by ‘cloud computing’. Simply put, cloud computing (which you’ll also hear referred to as ‘the cloud’) means internet-based computing. Services are provided through computers and related devices (smartphones, tablets, etc), via the internet.

With cloud computing your computer’s hard drive is no longer where most things take place (think about your Google Drive or Gmail account, for example). You don’t need to buy software or services from a shop. You simply access them online. Think of ‘the cloud’ as basically another way of talking about all the ways we use the internet.

Beginner's Guide to Cloud Accounting

The most common example of cloud computing is probably internet banking. Every time you log in to check your accounts, make a payment, or update something then you’re using the cloud. And with the cloud you can access data and software from anywhere, at any time. It’s the difference between queuing for 35 minutes at your local branch on a Saturday morning, or  sorting out your accounts from the comfort of your kitchen table.

In the same way, ‘cloud accounting’ means the use of accounting software that is stored in the cloud instead of on your computer. Data is also stored in the cloud – on a remote server that is not on your company’s site. This means you don’t need to purchase, maintain or upgrade any hardware yourself.

In a nutshell, cloud accounting is secure, efficient and convenient. It’s ideal for sole traders and entrepreneurs.

Top 3 reasons small business needs cloud accounting

The best things come in threes so we’ve listed what we think are the three best things about cloud accounting, specifically for entrepreneurs:

Convenience! You probably already use a smartphone or tablet to run certain aspects of your business. And by using cloud accounting you can access your finances from the office, on the go, or at home. You can get instant updates on what’s been paid and what’s still to be done. It also means less paperwork – all you need are a few clicks to manage your business finances.

Easy access. With cloud accounting you don’t need to copy files from one computer to another. Relevant information can be accessed by all the people that need it. This gives you more time to get on with what you need to do. You won’t spend hours distributing data to your employees or running around with folders bursting with receipts and invoices.

Safe and Secure.  Cloud accounting is safer and more reliable than storing your valuable financial data on your own computer (which can break, get stolen, or simply misplaced).

Cloud Accounting - Safe and Secure

With cloud accounting information is stored on secure servers and delivered over the internet. There are also regular back-ups. Internet banking is again a good example to use here – people were reluctant at first but now it’s everywhere. In fact it’s often the safest way to bank!

What can Zervant offer entrepreneurs?

Zervant provides quick, easy online invoicing software. It’s designed specifically for small business. use it to create and send an unlimited amount of invoices, for free! Zervant can make managing your business’ finances secure, efficient and convenient. Click below to find out more and to get started.

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