The Evolution of Cloud Accounting
In the past few years, we have witnessed the birth and rapid evolution of cloud computing, with more and more traditional services being replaced by their far more efficient, affordable and secure cloud alternatives. Accounting is no different and thanks to the hectic pace technology is moving at, the question is no longer whether you should move to cloud accounting but rather, when.
Problems with traditional accounting software
The drawbacks of traditional accounting software certainly play a role in the shift to cloud accounting. The data in the traditional accounting software system isn’t up to date and neither is the software. What’s more, the software only works on one computer – the data needs to be manually transferred between devices, usually by virtue of USB drives. This presents a myriad of other issues, mostly to do with security and reliability.
Traditional accounting software and services are outdated since they are rooted in the idea that only one person should have access to the data. This means that important people within your business may not have access to the financial and customer details, which impairs productivity and diminishes the level of customer service your organization can provide.
What’s more, traditional accounting software tends to be costly and updates and regular maintenance are expensive (often not included in the initial price), time-consuming and challenging especially if you’re not tech-savvy. Keeping backups is rarely one and even then, it may cost you more time and money than it’s worth.
When it comes to your company’s financial needs, you cannot afford to settle for outdated accounting services that charge you too much while bringing almost no value to the table. What you need is an experienced, qualified and pioneering accounting firm that will handle every single detail, provide you with cutting-edge accounting tools and allow you to focus on your company’s future growth instead of book-keeping.
What is cloud accounting
Cloud accounting is the alternative to traditional accounting software, whether it’s on-premises or self-install. The only difference is that cloud accounting is hosted on remote servers, similar to the Software as Service business model: data is sent to the cloud where it can be processed and returned to the user.
This means that all functions are performed off-site, rather than on your desktop which minimizes issues related to reliability and security. All you need to take advantage of cloud computing is a reliable connection to the Internet or another network via a cloud application service provider. Because of that, cloud accounting is far more flexible than traditional software – the accounting data can be accessed from any point around the world and from any device that has an Internet connection. What’s more, cloud accounting software like the one Profits Tax Consultants use can update your financial information automatically and provide you with real-time financial reporting.
Profits Tax Consultants is a cloud-based accounting firm based in Dubai that will go above and beyond to ensure that your company is provided with CFO-level accounting services and support your company’s growth and expansion. Our state-of-the-art cloud-based software is run by experienced British accountants who have spent more than 20 years of working with British companies and VAT.
Xero Cloud Accounting Software
One of the key players in the shift towards cloud accounting is Xero, a New-Zealand-based software company that develops cloud-based software for small and medium-sized businesses. Their software lets companies share access to the latest business numbers with their teams, accountants and bookkeepers so everyone – including team members around the world – are kept in the loop and up to speed.
This means that you can easily log into any Xero file you want by simply using your Internet connection. You can share access with your accountant who in turn can not only open the file but make adjustments, prepare and lodge BAS and tax returns, and provide real-time assistance if needed. This saves up time and money as the accountant doesn’t necessarily have to send the data back and forth, either digitally or physically.
We at Profits Tax Consultants truly believe Xero has transformed the modern world of accounting. Instead of having a monthly meeting with your accountant where you pile mountains and mountains of paper files, you can easily manage your accounting information in real-time. This helps you make faster and more effective decisions. Unsurprisingly, in the past 12 months alone, Xero has shipped more than 1,2000 features and product updates, most of them designed to provide accountants with back time and helping them migrate to methods of value-priced billing while increasing their workload at the same time.
Profits Tax Consultants is a 100% cloud-based accounting service, which means that you will be able to take advantage of the flexibility, convenience, and practicality of a cloud service based on the Xero Cloud Accounting Software. In addition, we will integrate accounting systems inside your company, offer you book-keeping as well as expense management services that will enable you to monitor your company’s growth, expenses and earnings.
In a nutshell, cloud accounting software like Xero enables professionals to save time, and businesses to enjoy greater flexibility, reliability, and security when it comes to financial operations. Xero certified accountants can create a lot of efficiencies going beyond that of manual data entry: using the cloud service, they can finally have time to analyze the work and truly help small businesses remain cash flow-positive.
Some of the benefits associated with using cloud accounting software are increased accessibility, productivity, organizational reporting and improved back-up and recovery. Cloud accounting can improve the productivity within your organization by saving you enough time to focus on actually running your business rather than spending valuable resources on bookkeeping and accounting.
What’s more, a Xero certified accountant can access your accounting and financial information from any point around the world. This makes it the ideal option for businesses that have remote employees or work with accountants from abroad. This also frees you from having to install and maintain software on individual desktop computers (so you can save money on your IT infrastructure and training expenses). With cloud accounting, you can also improve the communication within your business as employees in other departments, branch offices or remote areas can access the same data and version of the software, and make changes if needed.
Xero also makes it easier for you to get real-time reporting and visibility throughout your organization. With cloud computing, subscription-based models are the most popular option – you can pay a subscription to receive updates as soon as they’re launched, without having to invest more money in additional software purchases.
Xero also provides you with better backup and recovery capabilities. Cloud accounting makes storing and recovering data more convenient and reliable than in-house servers. All these benefits also ensure cloud computing is one of the most, if not the most, cost-effective option on the market. If you’re looking for a Dubai accountant, working with someone who is Xero certified can save you a lot of time and expenses in terms of maintenance and management of data and servers.
What the future holds
Given the many benefits cloud accounting offers to small and medium businesses, it’s not surprising that experts believe that cloud accounting will become the new normal. What’s more, Xero and similar software may become even more important and relevant as AI and machine learning grows in popularity.
Since we are a 100% cloud-based firm, we are able to offer you high-value, low-cost accounting services by cutting down on conventional, obsolete and expensive hardware and software and passing those savings on to you and your brand. Our mission is to establish an honest, trusting and lasting relationship by going the extra mile and ensuring your satisfaction. Choosing Profits Tax Consultants means having a whole team of highly-experienced British accountants at your disposal 24/7.
If you’re looking for a Dubai accountant but have not yet made the switch to cloud accounting software, it may be a good idea to put a framework in place as soon as possible. Steadily working towards a plan is the key to enhancing what you already have and prepare for the future – and by the looks of it, the future of accounting is synonymous with cloud accounting.
This whitepaper was written by Ali Afzal, the Managing Director of Profits Tax Consultants and Accountants in Dubai. We provide cloud accounting services starting from AED 850 per month and you can learn more about the software on www.dubaitaxexperts.com/software or visit us Xero on https://www.xero.com/uk/advisors/accountant/2017/profits-tax-consultants/ .