Well, put simply, when people talk about "the cloud", they're talking about online, the internet.  The term "cloud" is used because, when you're using the internet, it can feel like you're pulling pictures and information right out of the ether!

Experts and people in the know often talk about SaaS - "software as a service".  This is because when a company delivers its software via the internet, it is technically offering its users a service rather than a product. When you use a cloud service, you're accessing tools and data, which are stored in servers, through the Internet.  If you'd like to learn more, there are some great articles about cloud computing on the Sage Blog.

So now that you've got an idea of what the cloud is all about, here are five reasons why small businesses can benefit from working in the cloud:

  • 1. No need to for disks, boxes or installation: Unlike traditional software that you have to install to your desktop PC or laptop, if you want to use a cloud service, all you have to do is visit the relevant website and sign in.

  • 2. You'll be able to access your data from anywhere: If you can access the internet, you can access your service. Which means that if you've got a fancy smartphone or tablet computer, you can be productive even when you're out of the office.

  • 3. It's always up to date: When it comes to business software, which is where our expertise lies, it's really important that you're using software that keeps you compliant with the most recent legislation. Because you're using an online service, you'll always be using the most recent version and you won't need to worry about investing in new versions.

  • 4. Your data is backed up: We all know the pain of forgetting to save an important document and then having your computer crash or run out of power. Losing your business data or not having access to it for ages while you wait for a repair is the stuff of business nightmares! When you work online, your data is hosted in secure servers. At Sage One, we're fanatical about data security, so we do the hard work for you. We've partnered with Rackspace, one of the leading names in the industry, to make sure your crucial business data is safe, secure and backed up.

  • 5. It makes is really easy to collaborate with others: Because your service and your data is hosted online and is accessible from anywhere with an internet connection, it makes it easier for you to connect with others and collaborate. For example, Google Docs offers business office tools in the cloud which allow you to share and collaborate on documents. So if you're working on a report with a colleague who's based at another office, you could set up a document in Google Docs and both work on it at the same time. Now that's efficient!

If you're sold on the benefits of working in the cloud, why not consider using Sage One to manage your business.  Sage One is a family of online accounts and online payroll services specifically designed for sole traders and small businesses.  It's been stripped of jargon so you can be up and running in minutes with no prior experience or knowledge.

If you choose to work with an accountant, they can get their own version too; so they can access your information and use the tools they need to produce your accounts without the need for transferring large data files or the need to meet up;  just another of the benefits of using an online service!

About the author:  Zeinab Lenton is Marketing Manager for Sage Online, part of Sage UK Limited.  Passionate about customers and the digital world, Zeinab has spent 10 years developing a specialism in digital marketing. 

Visit www.sageone.com to sign up for a free 30-day trial.