Cloud accounting

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                        WHY CONTRACTORS NEED CLOUD ACCOUNTING

 

For contractors and freelancers alike, keeping up-to-date with the latest technology is important at all levels of a business. Accounting practices are no exception, as it’s vital they embrace the most advanced methods possible to save money, time and maintain high levels of efficiency. How to do this? Look to the skies by employing cloud computing technology. In simple terms, cloud computing refers to being able to perform computer tasks over the internet, with the information existing only in the ‘cloud’ of the worldwide web. Email services are a good example of cloud computing; you don’t install any software onto your mobile or desktop devices to use Gmail as all the emails are available to access from anywhere through an Internet connection. Thus, cloud accounting for contractors or freelancers work in a similar fashion.

 

Cloud accounting

Specifically, ‘cloud accounting’ is when a computer system that is connected to the World Wide Web is used to process a company or individual’s accounting data. An improvement on the days when you could only access your accounts from the computers you’d installed software onto, this approach is rapidly becoming the norm and is a system all contractors and freelancers should embrace.

 

So why is cloud accounting so much better?

If you can only access your accounts through devices with your own software on, you either have to take them everywhere, contact someone who’s near them to get the information for you or wait until you’re near one to do it personally.

These options can be impractical or inefficient, and when you’re able to access the data from anywhere you enable yourself to do your work personally wherever you are at any time. This goes some way in explaining why 66% of accounting practices are using or planning to use this approach.

Not only does it boost flexibility, but cloud accounting can also enable you to use better software than was previously available. With servers run by professional companies, as many as 59% of business leaders are seeing the agility of their work increase due to IT maintenance requirements falling after they moved to the cloud.

Such IT benefits go beyond a good connection too. Data security is also of grave importance, as no one wants their accounting details accessible to the rest of the world. The fact that 50% of companies say their organisation transfers sensitive or confidential data to the cloud proves the confidence business leaders have in its impregnability.

And ultimately, there are the cost savings as well. Servers can often provide more cost effectiveness than the average business can manage particularly when it comes to the use of cloud accounting software. The proof is in the pudding; 82% of companies say they’ve saved money by moving to the cloud, with fewer infrastructure, lower ownership costs and free upgrades.