The integration of cloud computing with accounting practices had made quite the mark in industries over the past few years. Most CPAs these days are embracing cloud-based programs and apps to balance the books with increased accuracy.
Designed akin to the Software as a Service model (SaaS), cloud accounting benefits small and large businesses. It not only helps optimize cost and accuracy but also saves time. Additionally, with the upcoming tax season, organizations can take advantage of this revolutionary software to make accounting easier than ever.
Here are 9 reasons why cloud-based accounting deserves a spot in your financial business operations.
1. Save on operational costs
Earlier, using technology for accounting was an expensive affair. Accounting and finance tech companies demanded a steep licensing fee, which had to be renewed after a stipulated time. Businesses were forced to hire tech specialists or train their accountants in using this specialized software, which added to the costs.
Cloud computing involves the user accessing accounting and finance software via the internet. Hence, businesses don't have to pay for the software. Additionally, a monthly or yearly subscription fee might be required to unlock additional features. But since such software is abundant in the market, the fee is only nominal.
Also, such softwares store user data in the accounting firm's server itself. This eliminates the need for businesses to invest in loaded computers to support big accounting software. Shifting to a cloud-based accounting system can help small and large companies decrease operational costs.
2. Automate mundane tasks and save time
Accounting and bookkeeping are commonly viewed as dull and painfully tedious owing to their repetitive nature. However, cloud accounting's adoption is slowly dismantling this perception by allowing CPAs and businesses to automate the mundane tasks associated with accounting.
The software records recurring transactions, such as utility payments, rent, and work-related service subscriptions. Moreover, the cloud-based programs are mostly on-tap services that do not require tremendous expertise to run.
3. Save on buying and maintaining servers
Just like every other business, storage is a huge problem for accounting. Companies using computerized accounting must shell thousands, or even millions, for servers to hold their precious accounting data. Huge conglomerates have to designate whole floors to the purpose.
But cloud accounting requires none of this hassle. The data is stored remotely on the service provider's servers. This type of outsourcing allows businesses to save on the cost of buying and maintaining high-end servers to store data.
4. Data security on all user information
Viruses and other malware can damage your sensitive data, devices, and worst of all, your credibility as a business. Nowadays, even the most secure operating systems like Linux and Macs do get viruses. However, cloud accounting can prevent computer malware from affecting sensitive accounting data on your computer.
Cloud-based accounting service providers store your data on their own servers. This ensures businesses don't have to worry about malware attacks or losing files. These servers also take care of internal data security and employ firewalls and encryption to keep your data safe.
5. Device and location agnostic accounting
Storing data physically in one place can be inefficient, especially when time and data are crucial for success in a competitive business landscape.
Most traditional accounting methodologies save data only on the computer drive or in a record book. This limits individuals from accessing files from any other device or location.
Cloud accounting software stores your data in the cloud. This means that individuals can access files with a registration ID and password, irrespective of location or device. Cloud accounting software also helps you customize restrictions to ensure only the right people get to view or take action on the data.
6. Sensitive data is never lost
A majority of people would agree that making backups for truckloads of data can be exhausting. Waiting for the system to copy crucial and heavy data to an external drive is as drab as it gets, but it's vital to the business, lest you lose it to theft or malware.
Using cloud accounting obviates the need to create excessive backups for every little file or transaction. CPA firms offering cloud-computing services will store your data comfortably in a remote site. In case of any mishap, you won't lose any valuable information because it's saved on a cloud and not your system.
7. Make data-driven business decisions
Cloud accounting software developers help you use your data better and efficiently by regularly updating the system. These updates are not only easy to use and install, but they also offer insights into your raw data. This helpful feature allows for data-driven decisions, thereby enhancing business operations dramatically.
8. Gain real-time insights from the dashboard
It's hard to get your hands on software programs that offer everything you need. Some are light in storage but don't come with important functions; others are too heavy for your laptop to endure. And mostly all are very, very expensive.
Cloud-based accounting and finance software offers you a buffet of functions and usages. The system can also be tailor-made for your precise business needs. Additionally, businesses can customize their account on the site. This ensures teams always have a bird's eye view of all financial operations thanks to an intuitive dashboard.
9. Enhanced control access and privacy settings
Increasing concerns surrounding data privacy and protection have heralded the shift in focus on access control. Cloud accounting software offers an array of privacy settings whereby you can decide the data your employees can access. You can classify your data into different levels, going from all-access to need-to-know.
An added benefit of cloud accounting is multi-user access. People sprawled in different parts of the world can work on the same data set simultaneously - courtesy internet, email ID, and password.
By letting people collaborate seamlessly, cloud-based accounting software makes the job efficient and reduces the time spent on sending valuable information via mail.
Cloud accounting is redefining the industry - nudging those looking to make a career out of accounting to embrace the software. But it's not just accountants that stand to gain from this technology.
From remote access to improved safety and secure online storage capacities, businesses can utilize cloud-based expense management software, such as Fyle, to devote their attention to operations and boost their overall performance. With these benefits and more, businesses should strongly consider leaving their traditional accounting process and technologies behind.
The world is shifting; it's time your business did too.