With the advent of ‘The Cloud’ and cloud-based technologies, the opportunity for these businesses to successfully D.I.Y. is now a reality.
I am a MASSIVE fan of Xero and think that it is the best accounting software package for SME business that I have ever worked with or seen.
With a professional file setup and file optimization, specific and detailed Xero training, and some basic bookkeeping training, most SME business now have the right tools to do a great job themselves and save a bundle in the process.
A lot of these SME businesses do not understand the technology and are therefore avoiding it. So let’s clear it up a little.
WHAT IS ‘THE CLOUD’ AND HOW DOES IT WORK?
Basically the cloud is computing as a service rather than a product, which is leased rather than purchased outright. Resources are shared over a network (the Internet) and are hosted at an offsite location, rather than internally. Cloud computing is not new, and if you have a Gmail, use Dropbox or internet banking, you have used the cloud.
WHAT ARE THE BENEFITS OF THE CLOUD?
1. Unlimited access - You have 24/7 access to all of your data from any location that has an Internet access and a computer / smart device. This means increased flexibility.
2. Cost savings - Cloud computing means that an external network provides most of the resources, rather than your local network / PC. Cloud systems are based on a pay-as-you-go pricing structure, meaning you only pay for what you use and you can customize accordingly.
3. Flexibility - Using cloud-based software means that it is much easier to add users or modules as your business needs change. It also means that you don’t have a large upfront investment, and moving from one cloud based product to another is not financially prohibitive.
4. Seamless updates - Keeping your software up-to-date is essential for good business management. Unfortunately when the software is installed on your own local network, upgrades can be time consuming, expensive and cause unexpected problems. Cloud software is continuously upgraded by the manufacturer on their own cloud infrastructure, and is seamlessly available to the end-user, and this is all-inclusive in your monthly access fees.
5. Secure data backups - Performing regular backups and having a disaster recovery plan in place is an essential practice for business security. Having your data stored in the cloud means one less thing you need to worry about – your data is already stored in a secure offsite location and being backed up for you.
6. 100% tax deduction - Because the cloud is ‘Pay as you go’ the business cost is 100% tax deductible in the period that it is incurred, which also has a very positive impact on cash flow compared to depreciation.
Looking at moving to The Cloud? Interested in a Xero conversion and training? Want to talk about the benefits for your business? Contact me and I will happily share my knowledge.