Why small businesses are going to the cloud

 “The cloud” is a phrase that means something very different these days, due to the increasing use of cloud computing. But what exactly is cloud computing? And is it a good option for small businesses? 

First, a quick definition. Without getting lost in ‘geekspeak’, cloud computing simply means both the software apps you use and your data are stored on remote servers on the Internet, rather than ‘locally’ on your computer’s hard drive or your own server(s). 

That idea—of the data not physically being in the same place as you—used to sound scary to many. What about security? What about the risk of losing your data? Surely it’s best to have your data on a computer you can see and touch on your own premises? 

Well, that’s out-dated thinking these days. 

Counter-intuitively, your data is likely to be more secure when stored in a cloud app, compared with storing it yourself on your own computer or server on your premises. 

Why is that? 

Security

Your own IT security is likely to be far less robust than that of a cloud app provider. If you access the Internet and use email, then you’re vulnerable even if you don’t use any cloud-based apps. Hackers can access the data on your computer or local network simply due to the fact that you have Internet access. It’s like a door. And they often know how to pick the lock. 


Reputable cloud app providers, on the other hand, use solid security measures such as SSL certificates that support—sorry, some geekspeak coming up—256-bit SSL (Secure Sockets Layer) encryption. This is the same level of encryption used by online banks. 



Let’s face it: This bank-grade security protocol is likely to be far more secure than your own computer and IT security protocols. 

Theft

Another advantage of having your apps and data stored “in the cloud” is that if your computer, server, smartphone, tablet or other device you use is lost or stolen, your data is safe because it’s not on the device. It’s in the cloud, stored securely behind encrypted passwords. 



And your data is far more valuable than hardware. Hardware is easily replaced. Data is not. 

Disaster

This same “you can relax because your data is in the cloud” factor also applies to disasters such as flood and fire. A business using cloud-based computing could have its premises burn to the ground overnight and continue “business as usual” from another location as long as they had access to the Internet. (At least from a customer, financial, accounting, human resources/personnel and other business data perspective. Clearly it does not apply to physical operational aspects of a business). 

Hardware

Computer hard drives are like car engines. It’s not a question of if they will ever break down, but rather when they will break down. That’s why we all diligently do daily data backups, right? And we all take these backups off-site each day, don’t we? And we all do weekly tests where we restore the backups to ensure the backups are working as intended? 


No? Really? That’s bad. Shame on you. 


And yet it’s precisely what most small businesses fail to do. 


That’s another great aspect of cloud computing. No more data backups to do. The cloud app providers back up your data automatically and they simultaneously store your data in multiple locations around the globe. This means that if one of their buildings was subject to, for example, a catastrophic earthquake, your data would be safe because it is also stored in different cities, on different continents. 


But even if technology got to a point where computer hard drives never failed, there’s one thing they always do, eventually: fill up. They run out of space. 


And that’s a major inconvenience with the old-school approach of storing data locally rather than in the cloud: You have to (or you have to pay IT providers to) move data across to new hard drives or servers, and reinstall the various apps and databases. It’s an expense and a disruption. 



With cloud computing you can kiss that inconvenience goodbye. 


Software

For many small businesses, when they fully adopt cloud computing they can reach the “no IT person required” stage. By that, we mean you won’t need an IT contractor to come on site to upgrade servers, maintain databases, fix software conflicts and so on, all of which is the norm when running old-school desktop apps and local servers. 



Why is that? 


With cloud-based apps there is no software to install. No software updates or “patches” to install. You just log in to each app and it’s always up to date. Nice. 


The one exception

There is one exception here of course. If your business is in a region where you do not have reasonable Internet speed (e.g. 5 Mbps or more) with reliable connections, then cloud computing is not for you. Not yet. 



Technology continues to evolve in this area, and it won’t be long until every business on the planet has Internet speeds that support cloud computing. 


Here’s where cloud computing gets exciting… 

While the security, risk and convenience aspects of cloud computing are worthwhile, they are not the most exciting and compelling benefits of cloud computing to a business owner. 



Let’s look at some of the “wow” aspects of cloud computing. 

Efficiency via Data Flows 

Every business wants to be more efficient. It saves money. Saves time. And it allows you to provide even better service. 



By adopting cloud computing and building an “app ecosystem” for your business you can eliminate a number of inefficiencies where data is being manually re-entered into multiple systems. 


Your data can seamlessly flow from one app (area of your business) to the next without the added step of manual data entry. Manual data entry is not only an expense and an inefficiency that slows down your business processes, it introduces the opportunity for error.

Work to eliminate all manual data entry in your business. If you see anyone in your business manually entering data into an app, you should question why it’s being done. Look for ways that data could automatically flow into that system from another app where the data is already stored. 


App Ecosystem Example 

Imagine your business has fully embraced “the cloud”, and has connected various apps so data flows automatically from one app to the next. 


Let’s say someone then searches Google for your type of business, product or service. They find your website. They see something on your site they would like to access, such as a PDF document with helpful information in it. They enter their email address and perhaps their first name in order to receive it. 


They are now in your business’ marketing database and Contact Relationship Management (CRM) system. And they did the data entry. 


Over the following few weeks this prospective customer or client receives email updates and e-newsletters from your business that gradually educate and build trust with the prospect simply by being helpful and sharing relevant hints and tips based on what they previously downloaded. 


And this happens automatically thanks to your marketing automation app such as Infusionsoft. 

The prospective customer then clicks on a link in an email and comes back to your business’ website. They’re ready to talk to someone, so they enter their information into the Contact Us web form. This time they enter their last name and their telephone number. 


This data also flows straight into your business’ CRM. 


Next, you’re speaking with them on the telephone and they like what they hear. They request a quote or proposal. You use a cloud-based proposal creation app (such as Proposify) that integrates with your CRM to automatically pull in the prospect’s information. You click a few boxes on screen to select the product and service options to include in the proposal. 

You click a button and the proposal goes to your prospect via email. 


They open the email, click on the link to the electronic proposal and view it online. They decide to go ahead so they click Accept, sign it digitally (on screen) and then enter their credit card details to purchase. 

This automatically adds them as a customer to your cloud-based accounting app such as Xero It also enters their credit card details into your secure eCommerce payment processing platform linked to your marketing automation app. And then your payment processor (e.g. eWAY) processes the credit card transaction. 


Xero automatically emails them an invoice marked as Paid, and the live bank feed will bring in the transaction ready to be reconciled (matched) to the invoice within 24 hours. So your bookkeeping and accounting is up to date, and yet no-one in your business had to enter—let alone re-enter—any data. 


You have a new customer, the money is in your bank account, and you’re ready to deliver. 

The purchase also triggered a fulfilment list and email instructions to your relevant team members, and added the job to your workflow (job tracking) system. 



Your business is amazingly efficient. You move with velocity thanks to data flows. You amaze your prospects and customers with your service, and impress them with your tech savvy. You’re saving tens of thousands of dollars a year on old school IT and administration approaches that would require a additional staff and contractors. 

You’re a modern, cloud-based business. And you’re loving it. 


Where to start with ‘going to the cloud’ 

The process of going to the cloud starts with deciding on your cloud-based accounting and CRM systems. That’s because your financial and customer data are crucial, and will receive and send data to and from your other operational areas. 


Your ideal accounting system and CRM platform will depend on your type of business and the apps you already use. Building your business’ app ecosystem is one of the most important areas for any business owner or entrepreneur to focus on. 

That’s why we love advising businesses as they move to the cloud. 


If you’d like to sit down with us and have a chat about your move to the cloud, get in touch to make a time. 

Going to the cloud is no longer an option for a modern, competitive business.



Need help with your accounting?

Find Out What We Do

Putting A Deposit Down on Property Purchase: How it Works.

April 13, 2026
Buying a home? Discover how holding deposits work and why they can help you stand out in a competitive market.

Why Small Business Owners Switch Accountants.

April 13, 2026
Thinking of changing accountants? Learn the four most common reasons business owners switch and how to find a better fit.
ATaA

How to Communicate with ATO & Access ATO Documents: A Guide for Individuals & Businesses

April 13, 2026
Stop missing ATO updates. Set up your online portals to receive BAS, notices, PAYG and critical ATO messages.

The Power of the Cash Offer.

March 13, 2026
At Ascent Property Co and Ascent Accountants, we know that in a competitive real estate market, how you structure your offer is just as important as the price you're willing to pay. While "cash is king" is an old adage, in property, it’s all about the certainty it provides. Here is everything you need to know about navigating cash offers to secure your next home or investment. How a "cash offer" actually works. There is a common misconception that a cash offer requires a literal suitcase of money. In reality, a cash sale simply describes an offer where the finance clause is removed from the contract. By signing a contract stating the finance clause is not applicable, you are making an unconditional offer. It doesn't necessarily mean the money is sitting in a transaction account today; it means you are waiving the right to walk away if a bank denies a loan. You are declaring you have guaranteed access to the funds required for settlement. The legal process of selling for cash is identical to a standard sale, minus the 21–28 day waiting period usually required for finance approval. Why sellers prioritise cash offers. Sellers are often motivated by more than just the highest number. Many will accept a lower purchase price if the offer is cash. Sellers love cash offers because they remove the "finance fallback". There’s no anxiety over whether a buyer’s bank valuation will come in short or if their loan will be rejected. Plus, without a finance clause, the sale process is hastened. Buyers can often move in sooner, which is a major draw for sellers looking for a quick transition. In a multi-offer situation, a cash unconditional offer acts as a point of difference, making your bid significantly stronger than those subject to finance. Preparing your cash offer. Because a cash offer removes your safety net, being organised is non-negotiable. Experienced purchasers—such as repeat buyers and savvy investors—often use this strategy because they have prepared their financial position in advance. Verify your liquidity . Before waiving the clause, ensure your funds (whether from a previous sale, equity, or private wealth) are ready for settlement. Assess the risks . The risks of a cash offer are the same as a financed offer after approval—the primary danger is defaulting on the contract. Build agent trust . Agents cannot legally demand to see your bank statements, so they rely on professional judgment to determine if an offer is genuine. Presenting yourself as a serious, organised buyer is key. Ready to make your move? Whether you need to review your tax structures for an investment or want to discuss the logistics of an unconditional offer, Ascent Property Co and Ascent Accountants are here to help succeed.

When Do You Need a Vehicle Logbook?

March 13, 2026
If you claim work-related car expenses using the logbook method, keeping an accurate and up-to-date logbook is essential. Many taxpayers assume a logbook automatically lasts five years but that’s not always the case. Changes in your work, travel patterns, or vehicle can mean it’s time to complete a new 12-week logbook sooner than expected. Here’s what you need to know. How long does a vehicle logbook last? Under guidance from the Australian Taxation Office (ATO), a valid logbook can generally be used for up to five years. During that period, the logbook establishes your work-related percentage of vehicle use, which is then applied to your total car expenses when calculating your deduction. However, that five-year period only applies if your work-related driving patterns remain substantially the same. If your circumstances change, you may need to complete a new 12-week logbook earlier. When you need to start a new logbook. A new logbook should be kept if your current one no longer accurately represents how you use your vehicle for work. Common situations where this happens include: Changing jobs . If you move to a different role or employer and your driving habits change. Moving house or workplace . A new home or work location can significantly alter your work travel patterns. Changes to work duties . For example, if your role now requires more (or less) travel than before. If these changes affect the way you use your car for work, your existing logbook may no longer be valid. New car, same logbook (maybe). If you purchase a new vehicle, you may still be able to rely on the logbook from your previous car, but there are conditions. You must make a written nomination before lodging your tax return stating: You are replacing your original vehicle with a new one. The date the new car replaces the old one. This allows you to apply the same business-use percentage to the new vehicle without completing another 12-week logbook. Records you need to keep. When using the logbook method, it’s not just the logbook itself that matters. The ATO requires you to keep records for all car expenses, including: Odometer readings at the start and end of the financial year. Purchase documents or lease agreements. Fuel or charging costs. Registration and insurance. Servicing, repairs and tyres. These records support your claim and ensure your deduction can be substantiated if required. One logbook per car. If you use more than one vehicle for work, each car must have its own logbook, and the logbook periods should cover the same timeframe. This helps ensure your work-use percentage is calculated correctly for each vehicle. A note on employer-provided vehicles. If your employer provides you with a car, or you salary-sacrifice a vehicle through a novated lease, you generally cannot claim car expenses using either the logbook or cents-per-kilometre method. This is because the vehicle is not considered to be owned or leased by you personally for tax purposes. Instead of claiming deductions personally, the tax treatment typically happens through Fringe Benefits Tax (FBT) and your salary package. Because these arrangements can vary significantly, it’s worth getting advice to make sure your vehicle setup is tax-effective and compliant. Need help with car expense claims? Keeping proper records and understanding when to update your logbook can make a significant difference at tax time. Claiming the right amount (with the documentation to support it) helps avoid problems later. If you’re unsure whether your current logbook is still valid, it may be worth reviewing your circumstances before lodging your next return. The team at Ascent Accountants can help you ensure your car expense claims are accurate, compliant, and working in your favour. Talk to us today.

Sole Trader, Company or Trust: What’s the Difference for Small Business Owners?

March 13, 2026
Choosing the right business structure is one of the first and most important decisions a small business owner will make. The structure you choose affects how your business is taxed, how much paperwork you deal with, your level of personal risk, and even how easily you can grow in the future. In Australia, the most commonly used business structures are: Sole traders. Partnerships. Companies. Unit trusts. Family trusts. Each structure works differently and has its own advantages and responsibilities. Understanding the differences can help you choose the structure that best suits your business goals. 1. Sole trader A sole trader is the simplest and most common structure for small businesses. As a sole trader, you operate and control the business yourself, even if you employ staff. The business and the owner are legally the same entity. This means the business income is treated as your personal income for tax purposes. Simple and inexpensive to set up. Minimal legal and tax formalities. Full control over decision-making. You keep all profits after tax. Straightforward reporting through your personal tax return. Things to consider. You are personally responsible for all business debts. Personal assets (such as your home or vehicle) may be at risk if the business cannot pay its debts. Access to finance can be more limited. Tax is paid at your personal marginal tax rate, which may become higher as profits grow. There are fewer tax planning opportunities compared to other structures. Tax & reporting Sole traders report business income and expenses in their individual tax return and pay tax at individual tax rates. 2. Partnerships A partnership is when two or more people or entities operate a business together and share income, responsibilities, and decision-making. Partners run the business together and share profits or losses according to the partnership agreement. The partnership itself does not pay tax, but it must lodge an annual partnership tax return. Relatively simple and inexpensive to establish. Combines the skills, resources, and capital of multiple people. Shared workload and responsibility. Flexible profit-sharing arrangements. Things to consider. Each partner is personally liable for the debts of the partnership Partners can be responsible for debts incurred by other partners Personal disagreements can impact the business Partners cannot transfer ownership without agreement from the others Income is taxed at each partner’s personal tax rate Tax & reporting. The partnership lodges a tax return showing the business income and each partner’s share. Each partner then reports their share in their personal tax return. 3. Companies A company is a separate legal entity that operates independently of its owners (shareholders). Companies are regulated by the Australian Securities and Investments Commission. The company earns income, pays expenses, and pays tax in its own name. Directors manage the company, while shareholders own it. Limited liability—shareholders are generally not personally responsible for company debts. A company can continue even if ownership changes. Greater access to finance and investment opportunities. A flat company tax rate (currently 25% for eligible small businesses). A more professional structure for larger operations. Things to consider. Higher setup and ongoing administrative costs. More complex compliance requirements. Directors must meet legal obligations. Money earned by the company belongs to the company, not the owners personally. Tax & reporting. Companies lodge an annual company tax return and pay tax on profits at the company tax rate. Owners can access company profits through wages, director fees, or dividends. 4. Trusts A trust is a structure where a trustee manages assets or a business for the benefit of beneficiaries. The trustee can be an individual or a company. Two common types used by small businesses are family (discretionary) trusts and unit trusts. The trustee runs the business and distributes income to beneficiaries. In discretionary trusts, the trustee decides how profits are distributed each year. Strong asset protection compared to sole traders and partnerships. Flexibility in distributing income to beneficiaries. Potential tax planning opportunities. Beneficiaries are generally not liable for trust debts. Things to consider. More complex to establish and manage. Higher setup and administration costs. The trust must operate according to the trust deed. Losses cannot be distributed to beneficiaries. Undistributed income may be taxed at very high rates. Tax & reporting. Most discretionary trusts do not pay tax themselves. Instead, income is distributed to beneficiaries, who pay tax at their own marginal tax rates. Risk, administration & growth considerations. When comparing structures, three major factors usually matter most for small business owners. Risk & asset protection. Sole traders and partnerships expose personal assets to business debts. Companies and trusts can provide greater separation between personal and business assets. Administration & compliance. Sole traders and partnerships have minimal reporting requirements. Companies and trusts require more documentation, annual returns, and ongoing compliance. Growth & tax planning. Companies and trusts often provide more flexibility for tax planning, investment, and expansion. They can also make it easier to bring in partners or investors. Need help deciding which structure is right for your business? Many businesses start as sole traders and later transition to a company or trust structure as they grow. However, there is no single “best” structure—it depends on your business goals, risk tolerance, expected profits, and future plans. Getting professional advice from Ascent Accountants early can help you choose the structure that saves you tax, protects your assets, and supports your long-term plans. Get in touch with the Ascent team today.
More Posts