The production of a set of accounts is essential for any business and to facilitate the accounts being accurate, bookkeepers keep records which the accountant can use to produce the financial record of a business. Bookkeeping documents may include ledgers, daybooks and other documentation which records a financial transaction of any kind. These bookkeeping documents are kept by the bookkeeper for presenting to the accountant when necessary or asked.
Although some businesses today still keep manual bookkeeping methods, most will now use electronic bookkeeping software as apart from any other advantages software can be updated in real time as opposed to a belated update made manually. The software is usually easy to understand and also easy to update, making it easier for a business to employ a competent bookkeeper.
When books are kept on computers though which is usually the case with software, a business must ensure that they have ample server space available for the vast amount of data the bookkeeping may create and, as there is always the danger that a computer system may crash, backup data has to be kept regularly, usually daily. This means that a business will more than likely have its own server which means it has to pay for the maintenance of that server and also pay for the data to be backed up.
Not having the expense of a server and the added expense of maintaining one, a business today can make significant savings which also increase as no one has to be paid to back up data. Another benefit of cloud bookkeeping software is that the records stored in the cloud can be accessed anywhere there is an internet connection. This means that traveling salesmen, business executives when away from the office at meetings and anyone else doing business for the company, need not download accounting information onto their laptops as they can access the books from anywhere they may be, provided they have internet.
Not having to download a business’s financial records can be better security for any business, provided of course that they are happy with their particular cloud bookkeeping software privacy regulations. The vast majority of the cloud bookkeeping software, however, only allow access to the cloud account to those that have the correct account details which can only be disclosed by the owner of the business or their nominated bookkeeper. This ensures confidentiality and yet still allows for convenience for any staff member the owner sees fit to give the cloud account details to.