Accounting can seem an intimidating task, especially for a small business just starting out. Before the advent of cloud computing, businesses had to rely on traditional accounting software on dedicated hard drives, that was often managed by an external accountant. This meant the data wasn’t easily accessible to anyone else in the business, and meant even business owners may only see the accounts annually.
Cloud-based accounting software has, however, helped to make the task of bookkeeping easier for businesses. Rather than each business needing an external accountant or specialist equipment to store their information, cloud-based accounting software has made it more accessible for businesses to balance the books themselves. It has also made accounting a much less time-consuming task as the software can update information automatically in real-time, if it is linked to your bank. Because of the “Open Banking” system, which allows regulated third-party systems to access your banking information, transactions can be automatically entered into your accounts which removes the need to manually enter each individual payment.
Furthermore, cloud-based software can be a more secure way for a business to do their accounts, although there is an added cyber-security risk. In the past, when data was stored on one device (and any backups the company kept), there was always a risk that it could all be lost should something happen to that piece of equipment. Cloud software has minimised this risk as the data is stored remotely on servers in the cloud and isn’t tied to any single device. Instead, the accounts can be accessed anywhere by anyone with the login details, whether you’re at work, at home, or even on the go, thanks to mobile apps.
Businesses both big and small can benefit from using cloud-based accounting software, but platforms don’t all offer the same features. They come with different

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