Many businesses are making the switch to cloud-based accounting software such as Xero or MYOB AccountRight Live and realising the benefits gained by placing their accounting data in the cloud. Below are some advantages of placing your accounting data in the cloud.

Easily shared

It becomes easy to share your accounting data with others in the business or your accountant. Instead of passing accounting files around on USB sticks or burnt media you can just grant access to others in the software itself. It also allows users to concurrently modify the data with the changes being reflected immediately.

Accessible from anywhere

No longer is your data tied to a particular computer or network. With cloud-based accounting software you can access your data from work, home or on the go.

Data security

You might think that your data living on someone else’s server on the Internet would make it insecure but data is transmitted over an encrypted channel, stored in a secure data centre and backups are made by the software vendor. No longer do you need to worry about off-site backups – it becomes someone else’s problem.

Always up to date

If you chose Xero or Reckon your software runs online so is always kept up to date, ensuring you don’t have to worry about installing software updates yourself.

Time saving features

Most cloud accounting packages offer bankfeeds, superannuation clearing and other services to save you time.

As with any form of technology, accounting software also has drawbacks. With Xero and Reckon because they run wholly online if your Internet goes down so do they. With MYOB, it still uses a traditional desktop client which can run in offline mode and sync to the cloud once your internet is reconnected, however MYOB’s approach can at times make your accounting entries feel laggy.