Technology is revolutionizing businesses in every industry, in many ways. One of the biggest drivers of this change is cloud-based computing, from social media to project collaboration – everything seems to be happening in the cloud.
Accounting services would appear to be a natural evolution of this shift to cloud, but are there benefits of cloud-based accounting compared to traditional software and on-premise servers?
Today, huge amounts of data pass through accounting companies and departments, both financial data and business related communication. It’s vital to have fast, reliable networking and data storage, to allow employees to utilize the information required, and to communicate in vastly more efficient ways.
What is cloud accounting?
Recording the income and expenditure of businesses for historical financial information isn’t new, it’s been around for centuries. Accounting software has been available for decades, allowing finance and accounting teams the ability to record and track the financial ins and outs of companies with more ease than traditional methods of bookkeeping.
So how does cloud-based accounting improve this age-old method?
The main differences are:
- Traditional accounting software is desktop-based, so applications need to be installed and run from a user’s office desktop. This limits access to data, requires vigilance with updates, and ongoing hassle and cost of backing up vital financial information to prevent it being lost.
- Cloud-based accounting software has the same abilities as desktop software but the entire process is in the cloud, or online. Cloud accounting increases efficiency, streamlines administration, and offers a comprehensive and real-time view of company finance information.
How can cloud-based accounting change your business?
Many of the benefits of cloud computing for other industries are realized by accounting firms or departments. Check out the key benefits of cloud-based accounting below.
Accessibility
One of the greatest features of cloud-based accounting is it allows you to access key business data from anywhere – an important necessity in today’s world of hybrid work environments. Team members working from anywhere, on any device, with internet access can log into the cloud service through a web browser and have complete real-time access to the information needed. This allows an instant overview of company financial data, which is incredibly useful when planning future expenditure or making big strategic business decisions.
The value of remote access to business information has never been as clear since 2020, when the pandemic forced many employees to work from home, and many continue to do so after businesses closed down their premises. Disasters of this level have forced businesses to rethink their plans for the future, particularly how to maintain productivity and remain functional.
Flexibility
One of the positive benefits of cloud accounting solutions is being able to add third-party cloud applications and tools to expand your business system. Online accounting software includes cash flow forecasts, online invoicing, income and expenses tracking apps – the list is almost endless. You’re also always using the latest version of the software thanks to automatic updates. These solutions allow you to save time and reduce costs, while reducing the burden of unnecessary administration.
Cost-effective
Cloud-based accounting solutions offer subscription pricing models, allowing you to choose regular, predictable payment plans. In addition, there’s no longer any need to budget for upfront hardware and software costs that are associated with on-premise data storage, or the unexpected costs for failure. With cloud-based accounting software, data entry can be automated, saving a vast amount of time for employees and allowing resources to be used elsewhere.
High-end security
It’s not uncommon to worry about the security of having data in the cloud, but it’s actually one of the safest ways to store information. The obvious advantage is that sensitive data stored on the cloud means less chance of human error, or the risk of lost or stolen devices. Months worth of data can be lost, servers fail, natural disasters strike.
With cloud-based accounting, you can grant access to information to those who need access, without having to worry about data being lost or copied when sending via email or similar. Your data is stored securely on remote servers, protected with end-to-end encryption when moving from and to the cloud, and backup systems in place. Cloud services manage security updates and backups, so you don’t have to worry about your data being accessed or lost.
Scalability
As your business grows, your cloud based accounting solutions grow with you. Whether your company is just starting out, or you have multiple employees across the country, the cloud solutions you choose for accounting can expand to meet your needs. You only pay for what you use, which allows more focus on growing your business in other areas.
To ensure your transition to cloud-based accounting is the smoothest possible, speak to the certified cloud consultants at Technology Solutions, for cutting-edge cloud consulting services that align with your business needs.
Cloud-based accounting is so much smoother. I wouldn’t have thought it would be this good until we tried it. Anyone that is still working with traditional desktop-based accounting software should give this a try. It may just change the way you do business, reduce time and lower stress. It’s absolutely the way to do things nowadays.
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Cloud-based accounting software has significantly reduced the manual work of accountants. In addition, it helped organizations get timely and accurate financial data to gain more insights. Informative post. Keep posting.
Cloud accounting has much more advantages than traditional accounting. It is more flexible and accessible from anywhere, saving time and reducing stress. Providing security and being cost-efficient, it is better to use it instead of the traditional method. I appreciate your article.
The pandemic has only forced us all to accept change faster and implement it now rather than in 3 years. Cloud accounting is here to stay and it’s time we all used it and went to the next level. It has a lot of advantages and very few downsides. Plus it’s more secure.
Cloud accounting has lots greater blessings than conventional accounting. It is flexible and available from anywhere, saving time and lowering stress. Providing safety and being cost-efficient, it’s far higher to apply it in place of the conventional method. I respect your article.