The idea of storing all your financial data digitally through cloud accounting software still seems odd to some. Having your highly confidential information open to online risks such as hackers may cause concern, but in reality, it’s actually very safe.
Here, we detail the security of these new accounting systems, along with how it compares to traditional bookkeeping.
Think back to conventional forms of accounting. You would lock your office, and maybe store your financial data in a safe. Others would simply leave the documents on their desk. However, the threat of potentially being burgled and thieves managing to force open seemingly tamper-proof items is still there.
Cloud accounting software is, of course, not without risk. However, there are plenty of effective cybersecurity techniques. These include encrypting the data, which is the same process applied to your online banking information. This shows how trusted these methods are.
If data is stolen from your workspace, it’s gone forever. That is, unless you have some sort of backup in place. Photocopying the information and storing it elsewhere is a contingency plan for the traditional bookkeeping format, but this is obviously quite time-consuming. In the event you need the backed-up information, travel may also be required, which results in business downtime.
Using online accounting systems, you can ensure information is backed up without any additional effort required – it does it automatically. And if, for any reason, the office can’t be accessed, then you can simply work online from another location, guaranteeing business continuity.
Such availability is also beneficial because you can work on your accounts whenever you like. Anytime access allows you to sort them out at a time that suits you. As the information is updated in real time, you can always get a clear and accurate picture of your finances.
With traditional accounting, however, you can get left behind. There’s much more involved in ensuring records are up to date, and it increases the amount of paper documents too. You’ll have to sift through these every time you want to check or amend something, making doing your accounts significantly more difficult.
The physical presence of documents means that traditional bookkeeping simply isn’t as straightforward as cloud enterprise accounting software. If you need to work together on your finances, perhaps with an accountant or colleague, then you will both have to be in the same room. Online tools allow you to be in separate locations, with no need to wait in order to collaborate.
There’s less administration involved in digital accounting too, so you can minimise the time you spend on this part of your business and focus attention elsewhere.
Online is the way accounting systems are going, with HMRC recently bringing the Making Tax Digital (MTD) initiative into force in April 2019. But beyond this, switching to cloud accounting is sure to give you a boost – especially when your chosen bookkeeping software offers other benefits like complete compliance, scalability and integration, like Liquid Accounts does.
To discover the exact features of our tools that will give your business an advantage, get in touch with our helpful team on 0161 413 5050 or email firstname.lastname@example.org.