Benefits of using cloud accounting include:
- Access to live data, which reflects the most up-to-date information about the business;
- Downloading bank account transactions directly from the bank to eliminate the majority of manual data entry mistakes;
- Easy access, which only requires log-in details and may eliminate the need to install accounting software;
- Auto-update for changes in accounting and tax laws is available with some systems, which eliminates the need to manually upgrade the business system as a new software version is released; and
- Flexibility – users can access to and work on the online data almost anytime and anywhere, provided that they have internet connection.
Factors to be considered before moving to a cloud environment include:
- Which business processes or systems should be moved to the cloud;
- How business processes can be streamlined and simplified before a shift is made;
- Whether the cloud system enables a business to meet its reporting obligations;
- Which cloud accounting providers provide the most suitable package and how much it will cost; and
- Whether the cloud system can cope with the business changing conditions
