Cloud computing is quickly becoming the norm for small businesses as storing information and using software hosted on the Internet allows for simple and accurate management of business finances.

There are many other advantages to switching to a cloud based accounting software, including the following:

1. Save money

Typically, small businesses will spend a large amount of money buying multiple softwares and packages, to be installed on several individual computers. On the other hand, cloud computing, can provide you with ‘Software as a Service’ (SaaS), which includes several programs that would otherwise be available individually.

Instead of on your own hard drive, the software is stored on a remote server by the service provider, thus eliminating the need for a high end computer to store it.

The automation provided by cloud computing also helps to reduce costs. Many companies have greatly reduced their IT expenses as a result of their service providers directly taking care of updates and program maintenance for them.

2. Save time

Cloud computing was developed to be an on-tap service that requires little knowledge or input from the end user. As such, cloud computing has done away with the end user having to install programs, download updates. You won’t have to stop work for a download bar to fill on your screen or an IT staff member to install a program.

3. Share more

Staff don’t have to rely on email when location becomes an issue. For example, colleague on a business trip can access a necessary document online, rather than waiting for it to be emailed to them by someone back at the office.

4. Flexibility

Data storage is one of the core benefits of utilising cloud computing – this then allows even large companies to access huge databases of information without having to operate their own floors of servers.

This outsourcing means that instead of having to invest in more hard drives and servers to increase capacity,

This outsourcing allows for businesses to minimise the need to invest in multiple hard drivers and servers to increase their data capacity. Instead they can simply store their data on the cloud and put the money towards expenses focused on growing the business. All you need is an Internet connection and the devices to access it.

5. Improve reliability

Cloud computing is proving that software as a service, rather than as a product, is more reliable. With so many people using a single program, instead of everyone using individual copies, service providers are directly managing software and being updated about issues immediately.

Fewer problems are arising because software isn’t being downloaded onto individually customised computers containing other programs and systems that the software might not be compatible with.

6. Be mobile

Since you don't need to rely on a single device to store all your data, this allows you to work on your multiple devices without needing to email documents between them.

7. Improve security

The biggest issue people have with suing cloud computing is security. Users have to hand over the responsibility of their data and thus it's security to their service providers.

While using cloud computing has it's advantages in protecting against physical theft, there remains a concern in the potential risk of hacking or a system failure, which could result in the loss of data.

8. Quickly recover from disaster

Data should always be backed up on a seperate hard drive, whether you're using cloud computing or not. However in an event where you may not have access to it, cloud computing can come in handy.

As long as you have an internet connection you can access your data, therefore cloud computing can be vital in ensuring the continuity of your business.

9. Bankability

The cost and time saving that come with using cloud computing can be promoted as an advantage in business plans. It’s not just an alternative choice to IT set-ups but an evolution of it.

It can be applied to make a business leaner and more effective at service delivery.

Studies have evaluated the lifecycle cost savings of cloud computing at up to 50% for companies using high numbers of in-house servers. Add to that, the elimination of service interruptions caused by traditional IT issues, such as downloading updates and fixing system errors, and your company can move forward a lot faster than your competition.