The advent of cloud computing has created many business opportunities and efficiencies accessible to businesses especially small and medium-sized enterprises (SMEs). One of these opportunities and benefits is virtual accounting, or as some of the protagonists prefer to say, cloud accounting is among the most promising new service offerings. What began as an idea of computing in the future has become a reality.
Recently, the tax authorities and the International Accounting Standards Board requirements for companies to file accounts using the eXtendable Business Reporting Language (XBRL) came into play. Traditional accounting packages have had to find add-ons to further process the accounts generated in order to comply. This is an added cost, but virtual accounting solutions are designed to be compliant.
Accounting controls have progressed from the days when it was considered a specialized and an awkwardly difficult task, fraught with illogical principles that undermine business freedom. Accounting packages such as peachtree, Sage, MYOB, and so on have made very useful contributions in reducing the difficulty of day-to-day accounting, but these programs appeared to add to the learning curve, and accessibility is limited to the computer system that they are installed on.
Some rather slick and simpler solutions are emerging in the market based on cloud computing principles. The ability to access your books of accounts and useful performance reports at any time and from anyplace with internet connectivity and the simplicity of use that virtual or cloud accounting solutions bring has accelerated the uptake. Users are instantly amazed at how easily they have been able to manage their books by themselves or through a part-time accountant working remotely. This brings additional opportunities for efficiency and reduced.