Many accounting practices across the world are looking for tools and ways to facilitate and automate some of the hefty tasks bookkeepers must make daily. Accounting software solutions such as Xero and Quickbooks have enabled these tasks to be expedited, however some of them limit the capacity to complete more complex tasks such as financial reporting or forecasting. Although there are many cloud accounting technologies out there to speed up these tasks, the go-to number one software for most practices is Sage Accounting, used by over 6 million businesses worldwide.1
Sage Accounting is a computerised system collecting data, classifying it, and summarising it in an accessible way to visualise the financial information. Often known as the software for traditional accountants, it is by no doubt that most new accounting firms and start-ups have shifted away from Sage and more towards newer cloud accounting technologies like Xero or Twinfield, these are cloud-based accounting tools. Despite the big move, there are still many reasons as to why one would choose Sage over paper-based accounting:2 it helps rule out human error, see real-time financial information, is less time consuming and more cost effective. The main difference between Xero and Sage is that the former was initially developed in the 1980s as an application rather than on the cloud. The disadvantages of Sage include the difficulty to set it up and the lack of integration with a multitude of other cloud accounting technology, unlike Xero, which enables a quicker way of sharing data and perhaps a more versatile way of processing this financial information. Xero accounting software has over 800 apps that range from simple tools such as sales invoicing to being able to acquire more complex abilities such as predicting future cash flows. However, it is quite clear that Sage is the cheapest plan making it more attractive and accessible for many accounting firms.3
The most recent event that has taken place involving Sage is its acquisition of Futrli, which is the UK’s premier cash flow forecasting software solution for small and medium-sized businesses (SMBs) and accountants.4 Prior to this acquisition, Futrli had roughly 100,000 businesses signed up to the platform. With Sage’s over 6 million users, this acquisition is clearly an attractive one for Futrli, expanding its reach. ‘Futrli by Sage’ will help accountants combine workflows and hence simplify the pricing model, making the actions of financial accounting and forecasting more cost effective and efficient. Could cloud accounting softwares revolutionise and keep most accountants on a more centralised platform around Sage?
Frequently Asked Questions (FAQ)
What is cloud accounting technology?
Cloud accounting technology refers to the use of web-based software and storage to manage financial data. It allows users to access their financial data and information securely from anywhere with an internet connection.
What is the importance of cloud technology in accounting?
The importance of cloud technology in accounting lies in its numerous benefits for businesses. First and foremost, cloud technology offers enhanced accessibility, allowing accounting professionals to access their financial data and software from anywhere with an internet connection. This enables remote work, collaboration, and real-time updates, increasing productivity and flexibility.
How cloud technology is helping accountants?
Cloud-based accounting software allows accountants to access their financial data and tools from anywhere with an internet connection. This flexibility enables accountants to work remotely, collaborate with clients and colleagues, and access real-time data. Cloud technology also enhances the security and reliability of accounting data.
What are the benefits of using cloud accounting technology?
Some benefits of using cloud accounting technology include:
1. Accessibility: Access financial data anytime and anywhere.
2. Cost-effectiveness: Avoid upfront software costs and hardware investments.
3. Real-time collaboration: Multiple users can work on the same data simultaneously.
4. Automatic updates: Software updates are handled by the provider.
5. Data security: Robust security measures protect financial information.
How does cloud accounting differ from traditional accounting methods?
Cloud accounting differs from traditional accounting methods as it eliminates the need for manual installation of software and data storage on local devices. Instead, it uses remote servers to store data securely and allows real-time collaboration and access from anywhere with an internet connection.
How secure is cloud accounting software in terms of protecting sensitive financial data?
Cloud accounting software providers prioritize the security of sensitive financial data. They employ industry-standard security measures like encryption, firewalls, secure data centers, and regular data backups. It’s important for businesses to choose reputable software providers and follow best practices, such as using strong passwords and enabling two-factor authentication, to further enhance security.
How can cloud accounting software help in streamlining financial processes and improving efficiency?
Cloud accounting software automates various financial processes, such as invoicing, expense tracking, bank reconciliations, and report generation. It reduces manual data entry, minimizes errors, and provides real-time insights into financial data. By streamlining these processes, cloud accounting software saves time, improves accuracy, and enables businesses to focus on strategic financial decisions.
References
- OneSys. Accessed on 24/05/2022. https://www.onesys.co.uk/news-case-studies/blogs/what-is-sage-software/#:~:text=Today%20Sage%20are%20working%20with,since%20it%20started%20in%201981.
- Monpellier. 5 Reasons to use Sage Accounting for your business. Accessed on 26/05/2022. https://monpellier.co.uk/5-reasons-use-sage-accounting-software-business/
- TaxCare. Sage vs Xero. Accessed on 27/05/2022. https://taxcare.org.uk/sage-vs-xero-which-accounting-software-is-best-for-you/#:~:text=Sage%20has%20limited%20access%20as,potentially%20achieve%20a%20cheaper%20package.
- PQMagazine. Sage buys Futrli. Accessed 27/05/2022. https://www.pqmagazine.com/sage-buys-futrli/
