Embracing cloud accounting

The cloud enables the delivery of hardware and software, such as email, office applications, file storage and accounting, over the internet. Time, cost and productivity gains are among the benefits of cloud technology being discovered by today’s accounting firms.

Many professionals are using this ubiquitous technology to become better connected, more productive and more competitive. Popular services include Gmail, Facebook, Dropbox and accounting solutions like MYOB AccountRight Live.

For example, the latest MYOB Client Accounting module enables accountants to connect with their client’s online AccountRight Live data file without leaving their MYOB Accountants Office (AO) or Accountants Enterprise (AE) Practice Solution. This means they no longer need to leave the interface they’re familiar with to work with clients in the cloud.

In addition, the latest MYOB Business Monitor survey found that Australian businesses using the cloud were 106% more likely to have reported revenue increases last financial year. Further, 43% were more likely to have more sales/work than usual in their quarterly pipeline versus those who weren’t using the cloud.

There are many benefits of the cloud and collectively they provide a strong opportunity to increase business productivity so you have more time and money to concentrate on growth building activities, and to be more competitive locally and globally.

If you’re considering cloud accounting for your business and clients, here are a few tips to consider:

1. Research trustworthy providers

Look for cloud providers that offer credibility, technology expertise and reputation. Scour their websites and independent information sources such as blogs, industry publications and research. Do they offer e-learning and round-the-clock support – via phone, email or web? Consider seeking feedback from IT consultants, clients and your peers. If you have a shortlist of providers, request client references.

2. Review different cloud models

Cloud accounting solutions can take many forms. Some require you to get to know your way around them, and others rely on your existing know-how. Some only work when you’re connected to the internet, while others work in offline mode as well. If you prefer online and offline access to your data anywhere, anytime - cloud-enabled accounting solutions that allow access online, on the desktop, or both may suit you.

3. Secure bank transactions are essential

A reputable accounting software provider such as MYOB (via its LiveAccounts and AccountRight Live products) lets you securely link your business bank transactions to your online accounting solution via BankLink. Other companies use a risky practice called ‘screen scraping’. Here, you provide your banking login and password to the accounting provider, who passes them on to a third party to ‘screen scrape’ your bank transactions. They then feed that data back through the accounting solution. It leaves business owners open to breaching bank terms and conditions, plus it increases the risk of mistakes made along the chain and the risk of potential fraud.

4. Read the fine print

Check: are there hidden costs, add-ons or other features that will take up extra time and money to get everything running? Or is it an all-in-one cloud solution? Also enquire about the providers’ service level agreements (SLAs), especially in the event of an unexpected or planned outage for maintenance reasons. For example, if a half-day outage will be detrimental to your business, then discuss what measures are in place as well as any potential outcomes with the provider upfront.

5. Evaluate your own IT processes and systems

Each business is unique, with varying budgets and capacities. Evaluating your own IT processes and systems is essential before migrating to the cloud. For example, will you require cloud access for all staff and for multiple devices such as computers, tablets and smartphones? What areas of business operation will truly benefit from incorporating the cloud? A good provider will help you budget and plan for now and for the future. It also helps to map out a transition plan to help make the move to your chosen cloud solution as seamless as possible so there is little to no disruption to your business.

MYOB CompanyDocs is just one of MYOB’s cloud solutions. With CompanyDocs, accountants can easily register proprietary limited companies that meet ASIC and Corporations Act requirements. It’s an online system that provides a step by step process with built in validation checks thatis easy to navigate and use. Once a client’s company details are submitted to ASIC, MYOB will upload the ACN and Certificate of Incorporation plus a full set of company formation documentation (including Company Constitution, Minutes, consents, registers etc.) and instructions into the CompanyDocs portal. In the coming months, the CompanyDocs service will be able to establish self managed superannuation funds. For more details and competitive pricing, visit MYOB CompanyDocs.