Cloud Accounting II
In the last edition of our newsletter, we outlined the benefits of utilising a cloud accounting package (“CAP”). Broadly, a CAP allows businesses access to timely information from any internet enabled device to aid in a financial decision making process.
Take for example one client who recently adopted a CAP to help alleviate some of the time they were spending keeping accurate business records. The client often travels for their business which meant that they would be required to keep track of their expenses whilst they were away and catch up on the business accounting when they were back in the office.
This client now uses a CAP through Apps on their smartphone and tablet whilst they are travelling to keep their affairs up to date. Now, the following tasks are all done from the client’s smartphone, amongst other things:
For this client, the use of a CAP meant that almost all of their accounting is now done during downtime between meetings, from their phone or tablet, rather than spending valuable time in the office on this task. They have also shared the access with us, which means that we are able to review real time information and assist solving problems immediately.
CAPs have also been of benefit to clients that are not in business, but rather have family entity structures to make investments. For example, significant time savings have been achieved by a client that holds a portfolio of investments through a family trust, by having their bank data fed directly into their CAP. As this was set up correctly from the outset, the CAP “learns” regular transactions that come through the bank account and makes suggestions as to how the transactions should be coded, all with minimal actual intervention by our client. This has significantly reduced their time commitment to keep good records, which they then use for more enjoyable tasks.
Importantly, CAPs in Australia are subject to strict privacy and integrity measures and are held to the same standards around online security as the banks are. Back ups are also performed with far greater regularity than would usually be the case with desktop versions of software.
ESV has experience in being able to identify which CAP is optimum for your business circumstances together with maximising the benefits from utilising your existing CAP. Please contact your relevant ESV Engagement Partner on 9283 1666 to discuss how the use of a CAP could assist your business.
Article by Geoff Tierney