The History of Cloud Accounting and Future Predictions
By Kevin Depper, Director of Online Services
At Hartley Fowler, we are committed to staying ahead of evolving technology. Providing our clients with the most efficient solutions is our driving force, and this includes cloud accounting.
When exploring the history of cloud accounting, it is important to look at the rise of cloud-based computing in general.
What is cloud-based accounting?
Cloud accounting is a system that allows financial data to be stored and accessed securely online, rather than on a single desktop device.
We have been forward-thinking in our use of cloud-based accounting services since 2007. Each of our offices is connected to a central hub (our cloud), allowing our teams to access the same live data from anywhere in the world with an internet connection. This also extends to mobile and tablet access, making it especially useful when working remotely or visiting clients.
We are continually reviewing our IT systems to ensure we can offer the most effective cloud-based accounting services as technology continues to evolve.
The History of Cloud Accounting
The early development of cloud accounting is often traced back to NetLedger (now NetSuite), launched in 1999, followed shortly by Salesforce. These early platforms were designed mainly for larger organisations operating across multiple locations, allowing shared access to financial data.
For many small businesses, desktop software such as Sage 50 and QuickBooks remained the standard for years. Cloud-based accounting software for small businesses, like QuickBooks Online, was introduced in 2004. Adoption was initially slow as many businesses had already invested heavily in desktop systems.
Another major development came with Xero, launched in New Zealand in 2006, which played a key role in accelerating the shift towards modern cloud platforms.
Our introduction to cloud accounting solutions
We had our first interaction with cloud accounting software in 2013 when one of our clients decided to try Xero. At the time, there was some hesitation about what the system would deliver, but it quickly proved intuitive and highly effective.
As more clients moved away from desktop systems, we began recommending Xero and QuickBooks as leading cloud-based accounting software for small businesses, supporting smoother collaboration and improved access to real-time financial data.
The Benefits of Cloud-Based Accounting Services
The government launched its Making Tax Digital initiative back in 2015. This has encouraged more businesses to explore cloud-based accounting software, making them move away from traditional systems.
The benefits of cloud accounting include:
- Real-time financial information and reporting
- Faster communication between accountants and clients
- Improved efficiency and reduced manual processing
- Seamless integration with other business applications
With live data access, we can respond to client queries quickly and provide more timely, informed advice. For business owners, this means better visibility and faster decision-making.
Future Developments in Cloud Accounting Software
The fintech sector continues to grow rapidly, and innovation in cloud-based accounting services shows no signs of slowing down.
At the time of writing, Xerocon announced that early in the New Year, businesses will be able to send payments to their suppliers directly from the software using an add-on with Transferwise. I look forward to seeing how this works, as this could prove to be a fantastic time saver for a lot of small businesses once they have set the system up. I’m sure that QuickBooks will follow suit and team up with a company so that their users are able to do the same.
At Hartley Fowler, we ensure our team stays fully trained across all major systems. This allows us to support clients using both traditional and cloud systems, while helping them adopt the most suitable cloud-based accounting services for their needs. We also continuously evaluate new add-ons and integrations to help clients maximise efficiency, improve reporting, and make better use of their financial data.
Contact our expert team today to find out more about our cloud-based accounting services.
Disclaimer: [24th May 2023] The information in this blog was correct at the time of writing and is to be used as general guidance only. Please contact your local Hartley Fowler office for specific advice.