Cloud accounting refers to the use of internet in order to record and process financial business transactions. Sometimes called cloud computing, this method does not require installation of accounting software in your computer. A lot of accounting services Singapore firm offer cloud accounting services.
For a fee, IT companies will often offer you online access to their platform in order to manage and maintaining your financial records. This will enable you to remotely access their servers and applications.
Cloud accounting eliminates or minimizes the need for bookkeepers or accountants. You yourself can generate the reports you need just by clicking some icons. The internet service will serve as your virtual accountant and finance manager. Your financial transactions will be processed according to the international regulation International Financial Reporting Standards.
Cloud vs. Traditional Accounting
Cloud accounting follows the same principles of its manual counterpart. Tools are different but the concepts are the same. Versus traditional method, online accounting is less prone to error because of minimized human intervention.
With cloud accounting savings are immediate and abundant. Instead of big upfront costs, you will only be paying low monthly charges. Employees wouldn’t allow you to pay their salary by installment would they?
The financial communication process will also be easier. With cloud accounting, all you need is internet and a compatible gadget. If you’re using the manual process, then you’ll have to find the accountant’s available time in order to process your request.
Cloud accounting advantages
Although cloud accounting cost some overhead (computer and internet), its benefits are generally more than the costs.
Your virtual accountant can work 24 hours a day, on-demand. The story is not the same for flesh and bone accountants. In just a few clicks, you can instruct the platform to produce specific financial reports. Aside from that, accounting software does not need salary, overtime pay or paid vacations. That’s why a lot of bookkeeping services in Singapore are already done by virtual accountants.
Words of caution
Your business’ risk is increase if you outsource your accounting services to a cloud computing company. There’s a lot of viruses and hackers out there that might compromise the security of your database. The provider itself might also be your problem. In 2011, Amazon’s cloud service went offline causing a lot of financial damage to its clients. The key to avoiding these problems is to choose software with proven track record and good customer feedback