Cloud-Based vs. Traditional Accounting Systems

The functionality of cloud vs. traditional accounting systems is essentially the same. The primary difference is where the data is stored and how accessible it is. Cloud accounting software utilizes the cloud, remote servers accessed via the internet, to store the accounting data. This means the data can be entered and reports accessed at anytime via the internet by the owners and people who need it. Traditional accounting software is typically only available on a dedicated computer or company server where the software is installed and data recorded. Typically, this means the data must be entered in the office and users must be in the office to have access to the data and reports.

Benefits of a Cloud-Based Accounting System

• Cost and scalability – Buy and use exactly what you need for your business. As your business grows, it is easy to add access to more users
• Updated access anytime, anywhere – You are no longer tied to one computer and can view your current financial data anywhere you have access to the internet
• Security and managed backups – Cloud-based systems provide a high level of security, redundancy and automatic backups of data
• Go paperless – There are many applications that will automatically feed your receipts and bank data into the accounting systems eliminating the need for paper copies

What is Virtual Bookkeeping?

Virtual bookkeeping allows the bookkeeper to provide services to the client while working remotely. Aside from the work location, there isn’t much difference between working in the client’s office and working remotely. The virtual bookkeeper has access to the bookkeeping software and can post transactions, run reports and provide services from anywhere they have access to the internet. Hiring a virtual bookkeeper is usually much cheaper than hiring someone who comes and works in your office.

Why Should I Hire a Bookkeeper?

Poor financial management and not seeking solid financial assistance are some of the top reasons businesses fail. It never starts out this way, but it can quickly overcome someone who feels it is not a current priority. Business owners may be handling their bookkeeping in one of many ways:

• They try to do their own bookkeeping along with all their other work. A lot of times it may never get done and they never have a good understanding of the financial health of their business
• They hire a close friend or relative who may or may not understand how to do bookkeeping. The books may be getting done, but do they truly know how their business is doing?
• They are using their accounting/CPA firm. The books are getting done, but are they overpaying for this service and are they getting a personalized service?
• They have hired someone to do bookkeeping in their office. Is this the person’s full-time role or is it part of their job responsibilities? Either way, it usually costs more to have an employee then to pay directly for bookkeeping services

If any of these situations apply to your business, take a hard look at the cost and value you are getting from them. If you feel you are not getting your money’s worth, come talk to me so I can show you how I can partner with you and help add value to your business.