Welcome back to part 2 of our cloud accounting guide. Be sure to check out part 1 if you missed it. Today we cover just a few of the advantages that cloud accounting platforms offer and look at a new service that might the next big thing in the sector.
Many cloud-based platforms have worked to create an architecture that seamlessly integrates with pre-existing systems, such as the HMRC’s services and financial reporting software. If systems work together, efficiency is improved.
Monthly based payments for software – like Adobe’s Creative Cloud, for example – allows companies to downsize and upscale the service when necessary. Paying small amounts for a vital service is also much more manageable for smaller companies. The cloud services’ Tech support are always on call, helping accountants through any technical issues they might face, as well as providing insight into new features when they’re rolled out.
The cloud services’ Tech support are always on call, helping accountants through any technical issues they might face, as well as providing insight into new features when they’re rolled out.
First-in-line by design
Cloud-based systems offer programs that are continuously updated – new features are rolled out and included in the monthly payment, unlike the static programs of yore. It means potential issues are constantly being addressed, and improvements for the platform are always being made.
Company data is automatically (and regularly) backed up through cloud-based platforms, unlike their static program counterparts which require manual backups that are susceptible to various errors. The platform is also available anywhere with an internet connection and the correct security credentials.
Emerging platforms to look out for
New Zealand based company Xero looks set to grow into one the of major players in the world of cloud accounting. March saw the platform surpass 1 million users and a considerable jump in profits. Partnerships with major banks across the world, including Capital One, Wells Fargo, HSBC and Silicon Valley Bank, seem to suggest that Xero could be an industry dominator in the making.
Xero – Vital statistics
NZ$1.4 trillion – the amount of transactions (in New Zealand $’s) Xero processed through the platform last year (incoming and outgoing).
1,0035,000 – the amount of subscribers to the cloud platform (end of year)
48% – the company’s year-on-year increase in revenue