Cloud-based software has been a buzzword for years. It’s easy to see why, with promises of increased security, increased precision and flexibility, all at a price that won’t break the bank.
However, there are still accounting firms that have not yet made the switch to cloud-based software.
For anyone wondering what it is, below is an overview of what cloud-based software is and how it can work for accounting firms.
What is cloud-based software?
In short, cloud computing takes place over the Internet. Before cloud computing, you had to install or download software onto your computer before you could use it.
Now, cloud-based software allows you to access software over the Internet, with no downloads required. As a result, any files or data saved on cloud-based software are stored online.
Making cloud-based software work for you
There are many reasons why cloud-based software can be useful for an accounting firm. Below are five reasons why it has become so popular.
1. Scalability
One of the real attractions of cloud-based accounting software is that you can usually add as many users as you want, regardless of their location. This means that as your client’s account grows, you can increase the number of employees assigned to work on their file, without needing additional servers.
Additionally, if a customer wants to access their information in real time, it is also easy to add it to the software. This means transparency and easy access for all parties involved, regardless of the size of the client.
2. Automatic updates
One of the frustrations of desktop accounting software is dealing with software updates as soon as they are released. Failure to update the software could result in tax returns being prepared incorrectly, or even lead to the filing being rejected by HMRC.
Cloud-based accounting software eliminates these problems because it ensures that all software updates are applied automatically. This means that everyone who logs into a client’s file is working from the latest version of the software.
3. Additional security and access control
Security is important for any business, but it is especially important for businesses with access to sensitive information, such as accounting firms.
Fortunately, cloud-based software allows information to be stored remotely, reducing the risk of sensitive data theft.
Additionally, when it comes to protecting your client’s information, there are also ways to restrict each user’s level of access to a client’s file, ensuring that your client’s most sensitive files remain protected.
When you combine these security measures with the fact that information stored in the cloud is regularly and automatically backed up, it’s easy to see why switching to cloud-based software can provide that extra peace of mind.
4. Collaboration has never been easier
The great thing about cloud-based software is that you can access it wherever you are, whenever it’s convenient for you. This flexibility means that all you need is a stable internet connection to access the software.
In a world where flexible working is becoming increasingly important, it’s reassuring to know that cloud-based software can help you support a variety of working styles and schedules, whether your staff works in the office or at home.
Additionally, the fact that multiple users can access the software at the same time means that collaboration and data sharing between colleagues – even if they work in two different locations – is as seamless as possible.
5. It’s profitable
There’s no point investing time in new software if it doesn’t make financial sense. Fortunately, many accounting firms find that moving to cloud-based software is more cost-effective than using more traditional desktop software.
This is because cloud-based software significantly reduces the maintenance costs of your IT infrastructure and equipment because the software is stored and managed online via the cloud.
Most cloud-based software providers typically charge a monthly subscription fee for using their service, and Taxfiler is no different. Many accounting firms find that the cost of a monthly subscription is much cheaper in the long run and much kinder to their cash flow, especially when you consider the savings accounting firms can make on electricity, IT systems and equipment.
Taxfiler offers an award-winning cloud solution for accounting firms looking for help preparing and filing their clients’ accounts and tax returns. Taxfiler supports a number of tax returns, including corporate, individual, partnership, and trust tax returns.
With compatibility with a number of web browsers and operating systems, it has never been easier to submit your clients’ accounts and returns online and on time.
For more information on how Taxfiler’s award-winning cloud system can work for your firm, take a look at our online demo.