What is Cloud Accounting? 

With the widespread adoption of cloud accounting software ever growing, we dissect cloud accounting, explain the differences between cloud technology and traditional accounting solutions, and explain the benefits your business will notice with cloud accounting software. 

What is cloud accounting? 

Cloud-based accounting software, also known as web-based or online accounting software, is hosted on a cloud application service provider’s cloud server and accessed through your web browser.  

Cloud accounting software, such as Access Financials, removes the need for your company to have its own infrastructure. 

The real selling point for cloud computing software is that it opens the doors of accessibility for your company and enables remote workers, different departments or offices to work from the same playbook. You can access your accounting software anywhere, using any device, working on the latest software version with the latest data at hand. 

Cloud accounting can promote more collaboration and a more efficient way of sharing information within your company.  

For a deeper dive into accounting software, don’t forget to read our article: what is accounting software? To help you with your business case, check out our blog: 6 steps to help you choose the right accounting software.   

What is the difference between cloud accounting and traditional accounting software? 

If you’re considering moving to cloud technology, then chances are you may already have on-premise (or traditional) accounting software already deployed within your business. 

The main difference between on-premise accounting software and its cloud counterpart is where they are hosted. Traditional on-premise accounting software involves purchasing a license and installing the accounting software on internal software located somewhere within your office. Your IT team will need to oversee day-to-day maintenance, which may include running updates, installing patches, managing back-ups and initiating security procedures. Access Attaché is an example of on-premise accounting software. 

Cloud accounting software is a very different beast. Instead of being managed on-site, cloud computing software is a web-based application, outsourced to a software provider and hosted on their servers in the cloud. Cloud accounting solutions can be accessed remotely, if you have an internet connection, and do not require servers or installation on a computer. 

If you’d like to learn more about the differences between traditional and cloud accounting software, we’ve got you covered in our guide: cloud vs on-premise accounting software: how do they compare? 

What are the benefits of cloud accounting? 

If your business decides to take the leap to cloud accounting software, you’ll experience the following benefits: 

• Greater protection for your business: when you move to cloud accounting software, your business will have peace of mind due to multiple layers of security, protecting your business from the risk of cyberattacks or system failures. 
• More accessibility: Cloud accounting software lets your employees access financial data anytime, anywhere, if they have an internet connection. This flexibility enables users to work remotely, collaborate with team members in different locations, and access real-time data. 
• Cost-effectiveness: Cloud accounting software is easier to budget for as it typically operates on a flexible subscription-based pricing model based on how you need to use the software. This will eliminate the need for significant upfront investment in hardware and software. Additionally, cloud-based solutions include automatic updates and maintenance, reducing IT costs for businesses. 
• Scalability: Cloud accounting software is highly scalable, allowing businesses to adjust their subscription plans or add features as their needs evolve.  
• Better data security: Cloud accounting software providers invest heavily in data security measures, including encryption, firewalls, and regular data security updates. Data storage is also made easy, with all data backed up and replicated in a second secure data centre. This all helps protect sensitive business data from unauthorised access or breaches. 
• The power of automation: Cloud accounting software automates many repetitive accounting tasks, increasing efficiency, reducing input errors, and freeing up time for employees to focus on activities of higher value. 
• Real-time insights: Cloud accounting software provides real-time visibility into financial data, allowing businesses to make informed decisions quickly. For example, Access Financials has enhanced analytics, including live dashboards and real-time reporting, which empowers your teams with the data they need when they need it. 
• Enhanced collaboration: Cloud accounting solutions facilitate collaboration among team members, accountants, and other stakeholders in your business by enabling secure access to shared financial data. With Access Financials, everyone gets access to a personal dashboard with the systems, apps, data, documents and communications that are relevant to them, improving collaboration and teamwork across the business. 

What about the security of cloud accounting? 

Security is arguably one of the most critical factors to choosing cloud accounting software for your business. Cloud accounting solutions will contain highly sensitive financial information about your business, and this must always stay safe and secure. 

It is often assumed that traditional accounting software offers greater protection than its cloud counterparts. This isn’t necessarily true. The reality is that the degree of security can be perceived to be better as in-house management provides access to your own servers, and that this offers greater transparency and control over your data. 

Cloud accounting software is managed by a third-party provider, but this doesn’t reflect on your data security. Most cloud technology providers are especially vigilant when data security is concerned, with off-site data storage in a highly secure centre.  

If you transition from a traditional accounting solution to the cloud, you’ll be doing so with peace of mind that there are no changes to how safe your business’s financial data will be. 

Will cloud accounting save me money? 

Cloud accounting software can potentially save you money in several ways: 

• Reduced IT costs: Accounting software in the cloud eliminates the need for investing in expensive on-premises hardware and infrastructure. Cloud-hosted accounting software means you don't have to worry about purchasing and maintaining servers, backups, or IT infrastructure. This can result in significant cost savings, especially in medium or small business accounting teams. 
• Subscription-based pricing: Most cloud accounting software operates on a subscription-based pricing model, where you pay a monthly or annual fee for using the software. This subscription fee is often more affordable than the upfront costs associated with purchasing traditional accounting software licenses. Additionally, cloud accounting software subscriptions typically include updates and support, reducing the total cost of ownership over time. 
• Reduced maintenance costs: Cloud accounting software providers handle software updates, maintenance, and security patches, eliminating the need for your IT team to spend time and resources on these tasks. This can lead to lower maintenance costs and improved efficiency for your business. 
• Scalability: with cloud technology you can adjust your subscription plan or add features as your business grows. This scalability ensures that you only pay for the resources and features you need right now. You’ll avoid unnecessary expenses associated with underutilising resources. 
• Accessibility and mobility: Cloud accounting software enables you to access your financial data from anywhere with an internet connection. This accessibility allows for remote financial management work, reducing the need for physical office space, and lowering overhead costs associated with office rent, utilities, and other expenses. 

While cloud accounting software can potentially save you money in the long run, it's essential to consider your specific business needs, the features and functionality offered by different cloud accounting software providers, and any potential implementation or training costs.  

Conducting a thorough cost-benefit analysis and comparing different software options can help you determine the potential savings and return on investment (ROI) of switching to cloud accounting software. 

For more on this topic, check out our article on how much accounting software costs. We have broken down price comparisons, factors affecting the price, Access Group pricing plans and more. 

Alternatively, you can head straight to our accounting software prices. 

Are you ready to switch your accounting software? 

We hope that this guide on cloud accounting software has given you greater insight into its benefits over more traditional accounting solutions hosted on-site.  

If you’d like to read more about switching accounting software for your business, why not read more about switching your finance and accounting software. 

If you or business stakeholders need more convincing on the benefits of cloud technology, do not hesitate to download our whitepaper, 'How to make a successful move to the cloud' for more insight and advice, as well as this handy Cloud Business Case Template. 

Access Financials, is easy-to-use cloud accounting software. It is highly configurable to how your business wants to work. Download our brochure to find out how it'll give you a smarter, more integrated and scalable way of working or talk to a specialist today. 

If you want to skip the line and see Access Financials in action, then why not book a personalised demo today?