What is Cloud Bookkeeping?

Accounting is an integral process of every business enterprise and has been in practice for centuries.  The expansion of the digital world has also changed the ways of accounting in the business world. Gone are the days when thick ledgers, journals and cash books were written diligently by accountants to record the transactions. Instead, accounting software, customized or generic, have taken their place. The latest information of your business can be accessed within seconds by clicking a couple of commands on your computer.

While the convenience of these software based accounting is unchallenged, it is sometimes unaffordable for small businesses or entrepreneurs with limited transactions. The cloud accounting, which is also known as online accounting, has emerged as a popular and affordable alternative for most businesses of any size or type.

When you buy accounting software suitable for your business, the software is downloaded in the hard disk of your desk computer or your laptop. You feed in the data and operate thereupon. Your data remains stored there and is retrieved as and when required. The expense of buying suitable software, updating their version from time to time, its maintenance, taking its backup data etc are involved and can be a pricey affair. Besides, the access to this software is limited and if you would like multiple user access, the additional cost is involved.

In cloud accounting, you need not buy software and store it on your desktop. It resides in the storage of your service provider and can be accessed by you from any place, any time with any device with internet connection. Your records are securely stored in the “cloud”. The use of internet banking is an example of cloud accounting and most of us are already aware of its convenience, simplicity and security.

There are many inherent advantages of cloud bookkeeping. In case you keep your accounting records in your laptop and it is stolen. Or suppose, its hard disk crashes.  All the vital data and records will be gone. The users of cloud bookkeeping need not worry about these unfortunate situations or even the loss due to fire etc. since their business data are safe in the ‘cloud’.

Furthermore, small business owners can always stay connected with their data and their accountants. The business owner has to pay a small monthly fee to the service provider which is usually very affordable. The agreement between the business owner and service provider also entails that should you end the service, you can delete all the data from the storage site. The security and safety of data is vouchsafed by the service provider. The business owner can also decide to provide limited access permission (or full access) to the site to his associates or accountants.

The Cloud Bookkeeping is also scalable thus as your business grows, you can scale up your requirements with the service provider at an extra cost. Thus cloud bookkeeping is cost efficient, affordable and secure way to keep your business accounting records.