What is Cloud Accounting?

Are you wondering what “cloud computing” is and why you should be using “the cloud” to manage your accounts? Give us a quick five minutes of your time and we’ll school you up!

First things first!

What is Cloud Computing?

Cloud computing is the use of computer hardware and software applications delivered as a service over the internet. This allows you to store files and use applications using many different devices and from many different locations in a simple way (in most cases, all you need is your internet browser).

As we say to some of our more hesitant clients, if you’ve used internet banking before, you are probably familiar with this type of service. Applications delivered this way are sometimes referred to as “Software as a Service”, or SaaS for short. This is the type of service that cloud accounting leader Xero provides.

What is Cloud Accounting?

The leader in “cloud accounting” or “online accounting” as it is sometimes called, is Xero Online Accounting.  Xero provides similar functionality to accounting software that you would install on your computer (such as some versions of MYOB or Quickbooks), except it runs on Xero servers and you access it using your web browser, over the Internet.

Your data is securely stored and processed on Xero’s servers—“in the cloud”. This means you are able to access your business financials and perform your bank reconciliation from anywhere and using any device, as long as you are connected to the internet.

There are many benefits to using cloud accounting. In addition to the flexibility of mobility, you never need to install software on any device, while backups and updates are automatic. The Xero servers are actively monitored, maintained and protected, and the Xero software has never been breached.