Commerce Blog

Advantages And Disadvantages Of Cloud Accounting

The latest accounting software such as Xero and MYOB are cloud based systems meaning they operate via the internet. As with anything online, there are disadvantages but the advantages far outweigh the risks.

Xero has been designed to make your life a lot easier and do away with many of the frustrations associated with accounting.

Brisbane Tax Accountant firm, Northern Business Consultants are one of the leading Xero Consultants in the state and have switched their clients over to the system since 2009, after realising it could revolutionise the way we do business.

With Xero Accounting there’s no need to install expensive software that can be so time-consuming. It also requires some downtime, which in itself can be so costly. You also need to buy additional licenses for each user, which you won’t need to do with Xero. This is a major benefit, you get an unlimited amount of users.

Understandably many new users are concerned about the security of their information. Xero has taken security extremely seriously and this is something the company has really invested in. In fact the security system used is even more secure and safer than many online banking options. Although the company is based in New Zealand, the company’s server can be found somewhere in Asia, but so are the servers of companies like Google, Yahoo and even Ebay, so you shouldn’t be too concerned about this.

With the similar functions as MYOB, Xero has been chosen by more than 600,000 users around the world. Xero runs a lot faster than other systems and allows you to choose add-ons which sync to any mobile device including IPhones, Ipads as well as other tablets and smartphones.

With Xero you have immediate access to your account balances and cash flow. When your business is just starting out, this is an invaluable service. It helps you see exactly how much money is in your account, helping you make important decisions quickly and efficiently.

There is also much greater control of your daily cash-flow. You can make important decisions about the bigger investments in setting up your business. It allows you to keep track of your costs separately and in real-time.

Xero helps small business owners run their business efficiently while doing away with the hassle of accounts. Xero gives business owners the extra time needed to plan and work towards growing their business, instead of worrying about accounts.

It even makes managing debtors and creditors a breeze. The system advises the users on payment due dates and accounts information, allowing you to identify and categorise debtors and creditors. You can easily identify poor payers and pay you own accounts in a timeous fashion. 

The financial control is basically in your hands rather than in the hands of your accountant. In the past accounts were so difficult to understand and keep track of but these days with Xero, anyone can manage their accounts. Taking financial control means you can plan better and attract investment.

Presenting your financial statements to potential investors is also made a lot easier and can be done more accurately.

You can now easily calculate your net profit so paying tax is made easier. The system automatically updates tax rates, giving you the necessary planning information.