Annual Conference of Treasurers 10 May 2014 Cloud Accounting David Olver

Annual Conference of Treasurers
10 May 2014
Cloud Accounting
David Olver
Cloud Accounting
• Accounting software on a remote computer
which will be fast and a large memory.
• Accessed over Internet.
• Uses web browsers (Chrome, Firefox, Internet
Explorer, Safari, Opera etc).
• Type of Cloud Computing.
• Growing in popularity with many providers.
Cloud Computing
• General name for software held in the CLOUD,
i.e. somewhere distant and unseen.
• Cloud software has program plus large database
securely holding data for many users.
• Natural development of World Wide Web.
• Traditionally: one software – one user.
• Cloud:
one software – many users.
Development of human/computer
interface
Human
Terminal
Wire
Remote computer
Human
Desktop PC
Laptop
Netbook etc
Wire
Cable
Optical
Internet connects
many computers
Tablet
Smartphone
Wireless
Development of Accounting
Paper
Cashbooks and ledgers
(mental arithmetic, calculators)
Spreadsheets
Add-on to classic spreadsheet
(e.g. Sharman spreadsheets)
Custom-built
programs
Highly developed and used widely
- personal (You Need A Budget, Moneydance,
Home Accountz, BankTree, AceMoney)
- small/medium (Sage, Quickbooks)
- large bespoke accounting packages
Online programs Custom made programs on remote
servers with Internet access
- established (e.g. Sage) + new players
Cloud Accounting - Advantages
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Platform independent (PC, Mac, Tablet).
Accessed anywhere – do not need to be at ‘home’.
Multiple users of same accounts - if want them.
Backups taken regularly (daily, hourly).
Latest version of software always available.
Cloud Accounting - Disadvantages
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Internet connection needed.
Remote online storage of accounts data.
User has less control.
Cannot be ‘tweaked’ for personal preferences.
Usually subscription service (£5-£20 per month).
Locked to company providing service.
Privacy and Security.
Cloud Accounting - Issues
• Backup of accounts data;
• Take regular local copies if needed.
• Privacy;
• European laws provide protection.
• Always a potential issue with Internet.
• Security;
• Applies to all web usage.
• Vigilance essential – sensible precautions.
• Install security software (firewalls, anti-virus).
How Cloud Accounting Software
Works
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Same as other Internet/web software.
Secure login.
Accounts displayed on web browser.
Input transactions, e.g. income to named account.
Displays variety of Reports.
Processes accounts to give automatic totals.
Most designed primarily for accounts required by
trading persons, companies and businesses.
• Generates Balances, End-of-Period totals etc.
• Can receive data from (say) online bank accounts.
Cloud Accounting software usually
includes
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Sales – Invoices
Purchases
Ledgers/Journals
Payroll
VAT
Bank reconciliation
Reports, e.g. monthly, sales
Cash flow
Profit & Loss, Balance Sheet, Trial Balances
Year-end Reports
Access for Accountants and Auditors
Some Online Accounts Software
available May 2014
Sage One
QuickBooks Online
FreeAgent
Kashflow
Freshbooks
Xero
ExactOnline
ClearBooks
Business Accountz
Brightbook
Aquilla
Quick File
Kashflow used by The Friend
• Used to use MYOB. Then support stopped and
problems in moving data around.
• Need multiple access by Treasurer, Bookeeper,
Subscriptions Officer, Advertising Manager – all in
different locations.
• The Friend is a charitable company – a business
and a charity.
• Kashflow satisfied specifications for day-to-day
use.
• SORP Annual accounts need producing outside
Kashflow.
Cloud Accounting for Treasurers
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All accounting software is a tool.
If you like current tools – keep them.
But computing changes rapidly.
Increased connectivity and interactivity all point in
direction of cloud computing.
• Most current cloud accounting software designed
for trading and more complex than needed by
Treasurers.
• Future points in direction of cloud accounting
software designed for AM and LM Treasurers.