Cloud Accounting - Explained

Aug 19th 2015 at 11:40 PM

The cloud computing has expanded the landscape of internet connectivity. The cloud computing is the data storage of your files in the discs of some other servers, located anywhere in the world. The concept of cloud accounting is also the spinoff of this technology. Cloud accounting has become widely popular amongst small business owners or emerging entrepreneurs who were looking for a skilled accountant to take care of the bookkeeping requirements of their business.

There are scores of accounting software available on the market which are considerably user-friendly even for the people having little knowledge of commercial language viz. accountancy. It is not easy for an entrepreneur to accurately maintain the details of transactions which is vitally important for smooth functioning of the business. Besides, to maintain the statutory and legal compliances properly, accuracy and diligence is essential while maintaining the books of accounts.

Most entrepreneurs prefer for some skilled part time accountants who would drop in once or twice a week to their office and punch in the relevant commercial details like sales invoices, payments received and disbursed, bank transactions, payroll details, expense details etc into the office computer and keep the records updated. This part-time accountant helps them to keep their accounting works properly maintained and updated. Most importantly, the new business ventures often have low turnovers and to survive the competition cannot afford to hire a full time, accountant.

The paucity of skilled accountants willing to undertake part-time assignment and also to depend on the location of the business, the new concept of cloud accounting is becoming highly popular. In this service sector, the accountant and often groups of accountants join hands and advertise their offer for accounting services on the internet. They undertake to maintain your accounting records for a small monthly fee. Confidentiality and security of your commercial details is duly undertaken by the hired agency. Since they may not be located at your location, the entrepreneur has to transmit the records, or the raw data of their transactions periodically (say weekly or fortnightly; as per requirement or mutual agreement). The service provider logs that detail on mutually agreed accounting software in the details is stored in cloud storage which can be accessed by the entrepreneur through any internet compatible device through a secured password. One can always browse or download details from there.

One of the significant advantages of usingĀ cloud bookkeeping services is its affordability and continuity. Since these service providers are experts in their fields, they ensure that your accounting records are properly maintained and compliant with the legal requirements. This is very helpful for the new venture business owners who operate from their homes and would not like a part time accountant to enter into their homes or private quarters. These cloud accounting services may not be suitable for all business models, but the present trend shows their client base is witnessing steady growth.

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