There are oodles of accounting software packages on the market, particularly for small and medium sized businesses. And at 542 you we love our technology, so we’ve always got our fingers on the pulse looking for the best solutions for our clients.

Since launching in 2006, Xero has no doubt created a stir in the accounting software market. Their stable mates, MYOB were caught unaware by Xero’s aggressive and forward thinking push to the cloud. Xero has unmistakably solidified themselves as leaders in cloud accounting. But what is cloud accounting? And should you care?

Cloud Accounting: A snapshot

Cloud accounting, serves the same function as accounting software that you would normally install on your computer, except it runs on a remote server that you access using your web browser, over the Internet. Data is securely stored and processed on servers—or “in the cloud”. This means you are able to access your business financials from anywhere, and using any device, as long as you are connected to the Internet.

There are many benefits to using cloud accounting. In addition to the flexibility of accessing your data from anywhere, you never need to install software on any device; and updates are automatic. Their servers are actively monitored and maintained, and we believe they have a much higher level of security than many small business networks and staff laptops.

Xero and the Cloud

Xero ticks all the boxes with most accounting functions we expect to see included. But what really got pulses racing is the level of reporting available. At a minimum you can view and share interactive reports and budgets in real-time, all prepared with a single click – no need to wait for month end. Management accounts can be completed in minutes, and all reports link through to the source transactions.

Being hosted on the cloud means there’s no need to install software, update or keep backups – it’s. This flexibility also means that there is unlimited scope for collaboration with your staff and trusted advisors. So you can have a deeper level of reporting and real time advice from your bookkeeper or accountant without being in the same room.

The 5-4-2 cents worth

Making the decision of what accounting software to invest in shouldn’t be taken lightly. But one thing’s for sure, the Cloud is here to stay. And that’s why Xero’s got our vote.

Are you looking for accounting systems you can trust? Talk to us to arrange a consultation.

Or check out our website for more information.

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