Cloud Accounting Basics

The basics of cloud accounting

What is cloud accounting? Discover how cloud-based technology can help your small business thrive
Post by
YAC Team
July 2020
The basics of cloud accounting

With the rapidly developing technologies available to accounting professionals today, accountants can offer their clients better and more tailored solutions at a more accessible price.

The technology of cloud computing is quickly transforming the field of accounting, giving small business owners access to an end-to-end accounting solution previously available to only large, elite companies.

Welcome to Cloud Accounting and your small business, a blog miniseries exploring various aspects of cloud accounting aimed at helping small business owners discover the tools and benefits of cloud computing.

In this first installment of the series we offer a 'Cloud Accounting 101', explore the foundation of cloud accounting as a one-stop-shop solution to your business’s accounting needs.

Read on to discover some of the tools that make up cloud accounting, how you can integrate cloud accounting into your business, and some of the benefits of cloud accounting, including one of the biggest game-changers in business accounting - unprecedented access to expert advice and support.

What is Cloud Accounting?

Simply put, cloud accounting is accounting work done using tools and data hosted over the internet.

Instead of storing software and information on your computer, the data is stored remotely on a secured server, making it available to you and anyone else you grant access, from virtually any device with an internet connection.

For the world of business accounting, this means significantly increased accessibility to financial information and software for both accountants and their clients. Collaborating on projects, retrieving your financial reports, or getting live support when you need it are just some of the benefits offered by this new way of doing business.

The tools of accounting

There is no shortage of accounting tools in today’s market. Deciding on which tools are best for your business can be a daunting process, not to mention the associated costs of acquiring the software and the training time involved in learning it. 

The multitude of specialized tools also poses the logistical challenge of how to integrate various systems together and allow for effective collaboration.

What can cloud-based accounting tools help with?

A typical small business will need software to manage bookkeeping, payroll, inventory, reporting, and much more. Finding a compatible tool for each and setting them up to work together is essential to take advantage of the time and cost-saving benefits these tools offer.

A cloud solution makes managing your finances as easy as signing-up

Cloud accounting simplifies the process by providing an all-encompassing and accessible solution, tailored specifically to the needs of your business.

A central hub seamlessly integrates with the financial tools you are already using and familiar with. From there, you get personalized help to fill in any missing gaps and optimizing your workflow.

At any stage, you can let us take over and handles every aspect of your business’ finances including bookkeeping, expense tracking, payroll, and report and tax filing. Or you can stay more hands-on and let us help you develop and operate a seamless accounting process that fits your business. Either way, cloud accounting frees you up to focus on your business.

A simple 3-step solution

1.   Select a plan

YAC offers a range of plans to best suit you and your business. Our online platform is your one-stop financial management hub, at the core of which is an accounting software solution. This is the program you and your accounting professional use to manage your business’ finances. YAC seamlessly integrates this software into our accessible and easy to learn web-interface platform.

Every YAC plan tier comes with free access to QuickBooks, the industry-leading accounting software solution. If you prefer to use a different tool, no problem! Our platform supports all major accounting software solutions.

Whichever plan you choose, we are here to help you get started - use our continually evolving support hub to learn how to use the platform, or reach out to one of our experts to get personalized help and support. 

2.   Upload

Information from your bank, such as credit card transactions, is automatically uploaded into your secure account. Cash or other external transactions are easy to upload with a quick point-and-snap app usable on your mobile device, or by drag-and-dropping the file from your desktop into our platform.

From here, it is a worry-free process for you as your team of accounting professionals review and consolidate the information and prepare your financial statements and reports. 

3.   Act

Review your business’s live financial data, navigate our growing FAQ database, or book a digital conference with your accountant, all from within the YAC platform. Act with confidence and make more informed financial decisions knowing your business’s current standing, or reach out to your accountant when you need them to receive expert consulting.

Cloud accounting is more than a storage system

Cloud accounting can benefit your business in more ways than just handling your file management. We believe that as technologies develop, so should the role of accountants. Cloud accounting offers unprecedented access to expert advice when you need it most.

Get help and advice when you need it

Our online platform allows you to schedule a meeting in seconds using the means best suited for your business; whether a phone call, teleconference, or anything else, the platform instantly generates an access link and provides an email reminder.

Cloud accounting offers unprecedented access to expert advice when you need it most

Your accountant is an expert in their field, and their advice can provide reliable guidance and make simplify challenging decisions. We take seriously our commitment to work personally with each of our clients and support them how they want to be supported.

More advantages of moving to the cloud

Aside from getting unprecedent access to consulting and support where and when you need it, moving your business accounts to the cloud offers many other benefits.

View your real-time financial data anytime

Unlike the traditional accounting workflow, where data was compiled at set time intervals and only accessible retroactively, cloud accounting solutions enable you to access your updated financial information anytime. Accurate information means more informed decision-making, and less time worrying and trying to predict finances.

Easy access and multi-user collaboration

Online solutions allow you to control who gets to view your business data, allowing you to easily grant your whole team access to vital information. You can also more easily collaborate with your team and advisors through online tools, all while looking at the same (up-to-date!) financial documents.

The best security for your financial information

A common worry expressed about moving information to the cloud is whether information can be safely stored online. However, information stored on the cloud is typically safer than physical information.

Nobody is able to access your information unless your grant them permission - everything is gated behind your secure password. Cloud technology companies invest significant resources into maintaining the stringent security and privacy standards required of them. Just like your personal online banking data, your business finances are kept secure.

In addition, you have complete control of just what information people can access. For example, you can give limited access to various teams in your business depending on what information they need to see, without having to give them access to all the data.

Finally, cloud-stored data is secured against any possible data loss that traditional, physical storage methods are susceptible to. For example, if somebody steals your personal computer, or it is damaged in a natural disaster, your information would remain safe and inaccessible to any external parties.

Automation saves you time and prevents errors

No more time spent transcribing information and keeping physical records. By setting up automatic data flow channels, information from your sale, income, and purchase channels is automatically recorded and inputted to your online books.

Even if you need to capture a physical receipt, you can quickly take a screenshot with your phone that automatically gets recorded thanks to optical character recognition. Our mobile app makes this process even quicker by automatically sorting the receipt into the correct folder.

Is cloud accounting right for your business?

One of the greatest features of cloud accounting is its flexibility and scalability. Regardless of whether you're an ambitious sole proprietor or a seasoned entrepreneur leading a large team, there is a cloud solution that will fit you just right, giving you access to important information, automating mundane tasks, and freeing you up to focus on running your business.

See for yourself how our flexible plans can fit your business’ needs or reach out today to discuss a custom solution to meet your needs.

Continue reading the Cloud Accounting Basics miniseries

We make it our goal to stay current with the latest technologies, integrating them with our people-first approach to create innovative accounting solutions. Join us in the next installment to discover the flexibility of cloud accounting as we discuss its benefits in relation to various industries.

Have any questions or a topic you would like to see us cover? We would be more than happy to hear from you - reach out! (or check out our FAQ database).

Next blog: Cloud Accounting for the Information Technology and Real Estate Industries

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