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By Kiara Williams on August 26, 2021 minute read

5 Reasons Why Cloud Bookkeeping Is Best

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What Is Cloud Bookkeeping?

Cloud bookkeeping. Bookkeeping in the cloud. Cloud-enabled bookkeeping.

No matter what you call it—the cloud plus bookkeeping is exactly how it sounds. Cloud bookkeeping is simply bookkeeping using cloud, or hosting, technology.

When you work with cloud bookkeeping software, you are still using the same bookkeeping processes that you know and are used to, just … with the benefits of the cloud.

As a result, traditional bookkeeping functions are elevated (pun intended.) Bookkeepers running their software in the cloud benefit financially, improve workflows, increase their security—and ultimately have happier, trusting, growth-enabled clients.

Keep reading to learn why traditional, manual bookkeeping processes are out and cloud bookkeeping is the only way forward for bookkeepers everywhere.

  1. Cloud Bookkeeping Is More Secure
  2. Cloud Bookkeeping Saves Time
  3. Bookkeeping Data Is Backed Up and Stored
  4. Cloud Bookkeeping Costs Less Upfront and Saves Money Over Time
  5. Transparent Bookkeeping Processes = Happier Clients

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1. Cloud Bookkeeping Is More Secure

Security is more than cyber-hacker, cyber-threat, or phishing-attempt safeguards. It’s the ultimate protection of data from any action outside of your control—weather, computer malfunctions, and yes, thieves, too.

The Right Networks cloud offers all-encompassing, bank-level security, but any bookkeeper using cloud technology benefits from built-in security that traditional bookkeeping processes will never have.

Cloud Bookkeeping
Traditional Bookkeeping
  • Bank-level security
  • Data is stored offsite, away from the office
  • If a hurricane, fire, flood or any other natural disaster occurs, data is unaffected
  • Security depends on the individual office; there is no standard
  • Data is stored onsite, at the office
  • Since data is physically stored onsite, it’s easier to steal and more likely to be lost due to a natural disaster

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2. Cloud Bookkeeping Saves Time

Cloud Bookkeeping
Traditional Bookkeeping
  • More prone to human error because manual imports are required
  • Data is stored with whatever method the client (or firm) has until it is manually imported (I’ve seen financial records stored in plastic bags … yikes.)

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3. Bookkeeping Data Is Backed Up and Stored

I used to work with someone who “lost” their work constantly. The first time it happened, no one thought much of it. Sure, we operate using Microsoft 365 (the cloud version of Microsoft’s on-premises suite) but things happen, right?

Everyone thought it was a bit odd when it happened a second time, but gave them another pass. Stranger things have happened, right? The third time it happened though, we knew something was up. This person—who lived and breathed the benefits of the cloud—kept losing their work because they weren’t … using the cloud.

If they had been using cloud technology, lost files wouldn’t have been an issue. Here’s why.

Cloud Bookkeeping
Traditional Bookkeeping
  • Data is regularly backed up to multiple locations
  • No physical hard drives, tapes, or computers containing sensitive data are stored on-premises
  • Back-up procedures depend on the individual or office
  • Backups (if they exist at all) are usually physical, stored onsite and easier to steal or corrupt

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4. Cloud Bookkeeping Costs Less Upfront and Saves Money Over Time

Cloud Bookkeeping
Traditional Bookkeeping
  • Allows businesses to buy only what they need, then increase their package (including storage, user count) as they grow
  • Transparent, efficient workflows cut out the time of outdated processes and save both time and money day-to-day
  • Businesses must invest in additional equipment to 1) run bookkeeping software, apps and tools and 2) store that bookkeeping data

 

ROI Calculator → Estimate how much your business could save by moving to the cloud.

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5. And Lastly, Transparent Bookkeeping Processes = Happier Clients

I was irritated this past tax season.

My husband and I sent everything to our accountant immediately, and then … crickets. It was like our financial records disappeared into the ether. After finding out everything wasn’t lost forever, and a few sporadic phone calls later, we got the status of our return.

But throughout the process, I felt like my precious financial information was just sitting on someone’s desk somewhere, unprotected, by its little lonesome self.

And if that’s how I felt—as a young-ish, probably uncomplicated tax filer—I cannot even imagine how businesses function with an outside bookkeeper or accountant not using the cloud.

Customers want to know what is going on—even if there are no updates! Just being able to check in, verify everything was received, and check out other relevant financial information in real-time offers another type of security for us anxious types.

Cloud Bookkeeping
Traditional Bookkeeping
  • Data stays accessible to clients
  • Depending on the relationship and permissions, clients can skip the email or letter and opt to enter information directly into the bookkeeping software
  • Updates can be tracked in real-time from any device
  • Relies on manual, outdated paper processes (like physically bringing paper receipts to/from bookkeeper) inviting more room for error
  • Take up more physical space in an office, because all that information has to be stored somewhere
  • Status updates require a phone call, email, or meeting

 

TL;DR: Cloud Bookkeeping Is Now

With better security, lower costs, safer files, happier clients—why wouldn’t you begin bookkeeping in the cloud?

Get a list of current cloud-enabled software, apps and tools and start saving time and money bookkeeping today.

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