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Is Cloud Accounting Destined to Become a Small Business Staple?

Accounting
Article
04/13/2016

Cloud accounting has already transformed financial management and bookkeeping processes for many young startups. And it’s growing in popularity. Is 2016 destined to become the year that cloud accounting becomes essential for small businesses?

Cloud Accounting Usage is Rising

The number of cloud accounting users among small businesses continues to grow as more accountants and bookkeepers have tried cloud systems with favorable results. The benefits of a user-friendly cloud accounting system generally include a high level of data security, the availability of offsite storage, and ease of implementation. In fact, a recent survey conducted by Software Advice noted that cloud accounting usage among small businesses with assets under $100 million has nearly doubled between 2014 and 2015. That year, 30 percent of small businesses surveyed reported the use of cloud based applications.

Cloud Accounting Saves Money

Many small businesses are initially attracted to cloud systems because of the potential to save money on technology expenses. For example, cloud accounting systems may help businesses avoid the need for large in-house investments in technology and data storage. Data may be backed up each night in a secure, offsite location, helping protect against the loss of important financial and operational information. Improvements to efficiency and the accuracy of financial reporting can also save on business expenses, especially when dealing with tight year-end deadlines.

Cloud Accounting Systems Can Provide the Latest Technology

With continual updates included in the low monthly price of many cloud systems, small businesses can feel confident they’re using the latest available accounting technology. Rather than needing to purchase updated software every year or two, cloud accounting updates are often simply pushed out to users as they become available. This frees at least one common task on an accounting manager’s to-do list.

Intuitive Design Works for All Users

Cloud accounting systems are often designed to accommodate a range of users, from those unfamiliar with financial reporting to professional accountants. System-compatible iPad® apps may also provide on-the-go access, allowing employees to input information and help maintain up-to-date expense records when out of the office.

With its rising utility and popularity, it looks like cloud accounting may become a standard tool for small businesses in the near future. When the time comes to implement a new accounting system for your business, consider the cutting edge technology delivered in the cloud. If a free trial is available, sign up and see firsthand what cloud accounting can offer your business, and why it’s growing in popularity among small businesses like yours.

 

This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
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