By Kelly Reinhart
Cloud computing is here to stay, allowing
businesses to use their applications or
access their files over the internet, rather
than on their local servers or computers.
Many people already embrace the cloud
with the advent of Apples iCloud and similar
backup programs for smart phones but
are unsure how these same concepts can
improve their businesses.
Cloud computing for small businesses
takes form in three main ways; software
that is only available to be used online,
software that can be hosted online using a
hosting company and data/file storage that
is hosted through a server owned by another
company. The software companies starting
shifting their software to the cloud years
ago, predicting the cloud as the future of
business computing.
Companies like QuickBooks have been offering a QuickBooks Online for years and the cloud trend has given rise to new companies that specialize in hosting QuickBooks software and files. Hosted QuickBooks takes your box versions and makes them available to be used over the internet by allowing you to login to a hosting company’s server.
All of this has created confusion for the small business owner, wondering whether cloud computing is right for them and what the benefits are of using it. So why move your QuickBooks or accounting systems to the cloud?
Gained Efficiency: Most small business owners have only after hours or weekends to do things like accounting, or to review their business results. With a hosted accounting software users can login and use it from any location with an internet connection. This means that a business owner can view their accounting data on vacation or from home.
It eliminates the restriction of having to be on location to view vital accounting records. A multiâ€owner business can have all the owners logged into their software at once from different locations. Retail or restaurants can have their point of sale working on location while their business advisor is analyzing last month’s sales. Easily the greatest benefit to accounting in the cloud is gained efficiencies by eliminating the barrier to when and where users access the software.
Security and Controls: A small business may have a server or it may just have a designated laptop it uses for business. In either case, the accounting software must be secure to insure a business’s proprietary information is safe from unwanted access.
Security is not only limited to access, if a laptop obtains a computer virus then the accounting data can be stuck there forever. All business servers have some level of security but most small businesses do not have the resources necessary to provide the type of security it takes to keep an entry level hacker out from doing damage.
Hosting services for QuickBooks from providers like Cloud9 or Right Networks have the complex security in both access and in the performance of the server. They insure files are backed up on a daily basis and absent catastrophic failures, your accounting files are safe.
Collaboration: With cloud accounting, gone are the days of backups to thumb drives with drop offs to accountants and bookkeepers. Accountants can access their clients accounting files for big events like a tax return or smaller events like a simple question with ease. Businesses can hire a bookkeeper that can access accounting files monthly without having to make a place for them to work. Business owners or managers can more easily communicate by having easy access.
Although there is not always an immediate cost benefit to moving to a cloud based accounting system, your business reduces the risk of a security breach which can outweigh the cost for years. It gains efficiencies and collaboration that can be integral in improving your businesses longâ€term performance.
Many CPA firms and professional bookkeepers have their own system of cloud accounting and can assist in learning more about how a cloud based accounting systems can improve a business’s financial performance.
Reinhart, CPA, is the managing partner of Reinhart & Associates.
Photo Courtesy of Reinhart and Associates