“Cloud accounting is the way of the future in the accounting industry and has the potential to have a big impact on small business” according to Mark Roderick, Managing Director of Perks – the largest, local independent adviser to small business in South Australia.
Recent research conducted by Wolters Kluwer Asia Pacific has found that currently 14% of small businesses in Australia are using cloud based software to manage their accounts, with adoption amongst accountants higher still, with 23% currently using a cloud platform.
The research also suggests that 60% of the accountants currently not using cloud systems will do so within the next two or three years, showing that the point is fast approaching where the use of cloud software to perform accounting services will be universal.
Cloud accounting serves the same function as accounting software that you would install on your computer, except that you access it over the internet.
Your data is securely stored on servers or “in the cloud” meaning you’re able to access your business financials from anywhere as long as you can connect to the internet.
It also allows your accountant or other business advisers to have access to relevant financial information that is held within a live file stored in one central location.
Mr Roderick believes that business owners will see cost savings and efficiencies on a number of different fronts leading to improved business performance.
“The technology will give you cost savings through a reduction in up front capital outlay on traditional software, staff savings for data input and reconciliation and IT support costs as you don’t need to worry about purchasing and loading software upgrades.”
“For business advisors, there is the added benefit of having improved access to more up to date business data through the use of cloud accounting technology” he said.
“This allows for a higher level of business analysis so that you can help your clients identify business improvement opportunities which can ultimately lead to profit improvements.”
The connected, transparent interface offered by a cloud system gives far greater visibility into the business, not just retrospectively but also into the future. It represents a powerful tool allowing the business owner and their accountant to engage in proactive strategic planning around the business and in doing so reset the professional relationship.
For more information on Cloud Accounting and how your business can benefit Perks are holding a seminar. To register visit www.perks.com.au
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