As promised, this is the second of two blogs revisiting the main ways in which SMEs can benefit from transitioning to cloud accounting, with observations based on our experience over the past 12 months.
The benefits of cloud accounting can be summarised as:
- The ability to access and enter data from any location at any time, provided there is an internet connection
- The availability of real time information
- Improved cash flow
- Savings in software and maintenance costs
- Access to accounting data by multiple users
- Improved data back up and security
This week we consider the last three of these points.
Potential cost savings
The software subscription is paid for on a monthly basis, meaning there is no major upfront cash outlay. As the subscription can be managed through your accountant this typically means that the fee is less than if paid for by the business.
The cost of software maintenance and upgrades is taken care of by the software provider, so there are no unexpected bills. As maintenance and upgrades take place in the background there is no unwanted administrative time spent on organising and reinstalling.
Our experience over the last 12 months:
'Gone are the days of paying hundreds of pounds upfront for an accounting package. Businesses are now happy to pay on a monthly basis and those who have switched to cloud accounting software are seeing a saving over a 12-month period. Clients who have sourced licences through us have also seen savings on the normal monthly software provider fee of between 20% and 50%. As an aside to the cost savings, clients have been extremely happy to not have to deal with any software upgrades, as these are taken care of by the providers.'
Access from a range of devices and by multiple users
Accounting data can be accessed from smartphones, tablets and laptop computers.
Multiple users are included in the monthly subscription cost which is generally not the case with desktop software.
Our experience over the last 12 months:
'We generally see businesses continuing to use laptops rather than tablets or smartphones when it comes to the processing of transactions. We have also been advised that tablets or smartphones are great aids when reviewing information on the go. The ability to have multiple users has been of huge benefit, particularly as access levels can be varied for each one.'
Improved data back up and security
Accounting data is backed up and saved on a remote server by the software provider. The provider also supplies data and disaster management facilities, so there are no worries about re-inputting data if a device is lost, stolen or corrupted.
Each user has their own personal login, so if required, system usage can be tracked to the person involved.
There is no need to save data on a memory stick or email information to your accountant, thereby reducing the risk of a data breach.
Our experience over the last 12 months:
'Clients have told us that not having to remember to make regular backups is a real weight off their shoulders. Not needing to save data to a memory stick has been of huge benefit giving time savings and reducing risk. One thing that clients must now be aware of, however, is that the data is always live. This means, unlike historic desktop software, you can’t restore an older version of data if you make a significant mistake. We would always recommend speaking to your accountant if you have concerns about what you are doing.'
