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 • • • • • 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 • • • • • • • 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 • • • • • • • 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 • • • • • • • • • • • 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 • • • • 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.