Benefits of Cloud Accounting Software?

[StuartCrawford]

Hello All,

Theses days, I am trying a new cloud accounting software for bookkeeping and other invoicing task. I am new to accounting field and want to know the benefits of moving to cloud.

[Freelancier]

You (and everyone else) can access it from anywhere without having to set up a computer dedicated to that software... and instead of paying once and owning it for years, you have to pay monthly. That's about it.

[Brian Altenhofel]

One big benefit in some situations is access to new features without having to upgrade.

[Freelancier]

One big benefit in some situations is access to new features without having to upgrade.I ran my businesses on QB 97 for nearly 15 years without feeling like I was missing out on any new features. Once an accounting system hits a certain level of maturity, the improvements tend to be very small increments instead of anything business-critical.

I eventually upgraded because I didn't want to load those stupid floppies again for the new accounting VM I was building.

[Brian Altenhofel]

True, they tend to not be business-critical, but quite often they are productivity enhancements.

[jamesray50]

Those benefits everyone mentioned are good reasons for using a cloud based accounting program. But not all programs are the same. They may be limited in customization features and may require purchasing add on apps to perform a function you need. I know with QuickBooks online you cannot make a backup. That may seem like an advantage cos you wouldn't have to worry about losing anything. But, you also can't give part of the file to someone else, the IRS for example. Read the fine print carefully to see what to do in the case you decide to stop using the product, how long will have access to the data, what can you do with the data, how do you export the data.

[Brian Altenhofel]

I know with QuickBooks online you cannot make a backup.

Yes you can.

Go to the gear icon in the upper right (with the company name), and under the Tools column is "Export Data". That exports to a Quickbooks Desktop file.

(Unfortunately, they require that you access that feature with Internet Explorer.)

[jamesray50]

Thanks for the correction on the backup. I based my comment on what some CPA's on another board said their reasons for not using QBO.:)

[Harold Mansfield]

(Unfortunately, they require that you access that feature with Internet Explorer.)
For that alone they should be flogged.

[TAAccounting]

I use cloud accounting for all my clients and the benefits are pretty nice.

1. All my interns and workers can be attached with no additional computer costs -- everybody has a laptop nowadays
2. Easy accessibility and it makes accounting more "proactive" rather than a "reactive" field -- at least in my line of accounting work
3. I now have a local/national/global presence all by sitting at my desk -- majority of time, I miss out on clients who say "I want your expertise, but how do I feed the information to you". With a cloud, that's easy to do.
4. It's much more secure than any desktop/server that you're going to setup in your own office (not to mention the cost that are associated with keeping your machines up to date)

I use "Insynq" as my cloud host. And I've been able to put an entire SAP system onto the cloud without any bit of downtime. Pretty nice when you're dealing with customers like Urban Chestnut.

[Florian]

One of the biggest advantages of cloud accounting software is the add-ons that integrate with it. The add-on eco-system for cloud accounting software is enormous and provides a smooth integration with software that couldn't link with accounting software before. Think about how tools for cash flow forecasting, receipt scanning and documenting, automated credit control, reporting etc can automate tasks that are laborious and don't really require your attention.

[Brian Altenhofel]

One of the biggest advantages of cloud accounting software is the add-ons that integrate with it.

This has been a huge feature for both me and my clients. With cloud accounting software, it's always on without any real additional effort from you. It is a lot easier to integrate websites directly with Quickbooks Online or Intacct than it is a self-hosted Quickbooks Enterprise Server (and especially Quickbooks Desktop).

[kartik]

The major advantage of using cloud accounting software is that, you can access it from any location and with your colleagues and team members simultaneously.