Cloud Accounting is a game changer for the Accounting profession an evolution for the accounting industry. Traditionally when you think of the profession of Accounting you perhaps think of Taxes, Bean Counting and Geeky excel wizards #Stereotypes. Things are changing with Cloud Accounting where Accountants are redeeming themselves as more than just #BeanCounters. Accountants are stepping into the role of Strategic Business Advisor, so much better than just being a Governmental filing agent. So what’s the Cloud hype all about? Well for that we have to go back in time to where it all started. #TimeMachine
In the old days the traditional Accountant and client would both have only half the information during the fiscal period. Consolidating these pieces of information together was complicated, difficult and costly because of the multiple software packages used by the Accountant and Clients. Moreover it was super painful to synchronize these accounting softwares into one accounting system so the business can finally be analyzed and Taxes filed. Since the old way of billing a client was strictly based on “billable hours” the Accounting costs for clients kept increasing. #FixedPricesPlease
With the Cloud things changed. The Client and Accountant are using the same software and General Ledger. No more synchronizing issues and installation of software issues. The Client and Accountant can actively collaborate together strengthening the relationship. The Accountant can now take the position of a Strategic Business Advisor rather than just a Tax Advisor. Imagine making the move from seeing an Accountant once a year for compliance work compared to having the Accountant actively involved by providing you the reports and numbers on a weekly/bi-weekly basis so you constantly have financial information available to make more strategic decisions. #NumbersDontLie
The cloud shines in one particular area which is where Cloud Accounting softwares (Like Quickbooks) directly connect to the client’s Business Bank and Credit card. This speeds up the process because the actual data entry work involved is significantly decreased leading to increased time saving which are re-invested into the Client’s business. The security of Cloud accounting is the same level of security of Banks. If you do any Online Banking your comfort level should be the same using this Accounting software package.
With Cloud accounting you no longer have to pass over that dreaded end of year shoebox. When deciding on an Accountant it’s important to not only concentrate on governmental compliance filings (which everyone can do), but are you also getting the skill-set of a Strategic Business Advisor. I’m sure your business would compete better with a Business Advisor on your side speaking of which, when’s the last time your Accountant talked to you about your Business’ Competitive Advantage?
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- Written by: Jag Bath