In recent years, there has been a movement towards using cloud computing technology for accountants. Cloud computing provides accountants and their clients much more flexibility as it allows access to files and software from almost anywhere. This improves the accountancy process as multiple users and offices can collaborate and use the same data across the board.

Accountants have seen the benefits gained from using the cloud. The key difference between cloud and traditional accounting is that there is no longer a requirement to have a physical hard drive, which has a number of great benefits. Moving away from traditional accounting methods, early UK adopters of cloud based accountancy, Norwich accountants Farnell Clarke have recognised its essentialness in streamlining business and accountancy processes which has become particularly important when considering the rise of portable devices which has meant people are now staying connected beyond the standard working hours.

The cloud enables people to run programmes and apps through the internet, as opposed to having to use a downloaded program. This means that programmes and apps and can update automatically, ensuring that they are secure and protected from malicious cyber attacks. These updates are frequent and come with add-ons which will further the efficiency of accountancy; all within the subscription cost.

With cybercrime on the rise, a concern for accountancies is whether their sensitive data is safe and protected. Cloud computing products recognise this threat, and their developers build the programmes with rigorous security measures. Competent accountancy systems use secure, encrypted connections. This means that your data is encrypted on your device before it’s sent to the server; and when it comes back. Essentially, no one can view the data that is being sent or received. It is also important to highlight the importance of having a secure and robust password. Cloud software companies take data security extremely seriously but if the user has a weak password, all of that security protocol goes out of the window.

Many cloud based accountancy systems have the functionality to backup files and data automatically. This is both hugely beneficial for saving the company time but perhaps more importantly, delicate documents are kept safe in multiple locations. This means in the event of for example, a fire, the documents will not be lost and the impact would be diminished. Also, if the computers and hardware were stolen, the data would be safe because the data is being stored off-site. The only way someone could access the files would be if they had the login details.

All in all therefore, cloud based accountancy has become an astute investment for accountants and businesses of all sizes. Working in the cloud has provided a better overview of finances, cooperation between team members has been improved, while sensitive data has also become more secure.