Home Insights The benefits of cloud accounting

The benefits of cloud accounting

By Ensors Team
12th Mar 2018

Cloud accounting packages have some very intuitive features and many of them are very helpful. If sufficient care is put into setting them up right, then they can significantly cut down on the amount of manual work required in keeping your records up to date.

However, there are some features that can lead you down a path of errors and this can be terribly tricky to undo. It is therefore vitally important that the users of the software have been trained appropriately and that regular checks are carried out.

Bank feeds are a way to help ease the burden of input – however, these are also not to be followed blindly as on some occasions I have seen bank feeds have missing or duplicated transactions and this will probably result in errors in your accounts.

Bank rules are also a big timesaver for processing. These enable you to instruct the program to remember certain criteria and apply posting details. Again, these should be used with the same caution as the bank feeds, as each transaction needs to be reviewed prior to any rule being applied to make sure that transactions are allocated correctly.

Plug-in apps can make a difference and include those that allow the scanning in of invoices and receipts with automatic recognition and suggested postings.

Internet connection speeds are key. Whilst in the centre of a city these may be high enough quality to operate satisfactorily, many people in rural areas actually struggle to use Cloud based systems effectively because of the time delays. 

Cloud accounting packages are much easier to use across devices and across offices than standard desktop solutions – anyone can log in with their user details from any device with an internet connection. Many cloud accounts providers also have apps for mobile devices to make access even easier.

With no upfront cost & prices starting from just £5 +VAT per month it’s easy to see why these packages are attractive. However, these cheap packages are very basic and possibly won’t be good enough for most businesses, so you need to consider the higher level packages too.

As the there is no software installed on local machines, the service providers are responsible for installing and maintaining core technology within the servers in the cloud. Some business customers prefer this model because it limits their own burden of having to purchase and maintain infrastructure.

In conclusion, there are many factors that will affect your decision making with regards to software choice. Technological progress over recent years mean that the Cloud software providers have come on leaps and bounds and have made the market a more competitive place. These developments may ultimately be better for the consumers’ value for money but it makes the decision of new software more complex than it once was.

Here at Ensors we have an experienced team with knowledge of a wide variety of software, both desktop and cloud based. If you need any help with your software choices then please feel free to get in contact.