What is Cloud Accounting? Take Advantage of the Cloud
It’s not surprising that cloud accounting systems are in high demand, especially since they streamline very important day-to-day accounting processes. The cloud removes the chains most businesses have to accounting systems, which can be expensive and tedious to maintain. Small and large businesses alike are already using the cloud to manage their financial data and reaping the benefits of efficiency and accessibility.
One of biggest considerations for switching to the cloud is to boost productivity and revenue. Cloud accounting is Software as a Service (SaaS) and is often charged as a monthly subscription. Compared to legacy systems that often involve complex and costly hardware and software, the cloud holds many advantages. By transitioning to the cloud, you eliminate the need for servers and the overhead costs that come with it such as IT staff, salary, and network costs. The finance department is freed from directing documents and the burden of paper flow, and they can enjoy improved data flow and access to analytical tools anywhere, anytime.
A cloud accounting service provider can manage overhead costs, version upgrades, maintenance, system administration costs, and server failures. With the cloud, updates happen automatically. It can also grow with your business and expand functionality through integrated applications. The cloud helps your business make more educated decisions, with increased productivity that boosts your competitive edge, rather than relying on outdated accounting systems.
The cloud helps users avoid errors that often happen in manual bookkeeping. Accurate data is crucial to successful financial management, and SaaS-based accounting systems automate identification of duplicate entries to prevent these types of errors. In addition, confidential or proprietary information is secure in the cloud due to controls and approval processes. Approval hierarchies within the SaaS ensure that the overall financial integrity remains whole.
Many businesses have concerns over whether their data will be secure in the cloud, but it’s one of the most secure ways to store data. Cloud-based accounting solution providers maintain a greater level of security than most companies would be able to implement or afford on their own. This includes protection from data loss, security breaches, and external data hacking. However, your cloud protection is also dependent on how well you establish and implement internal policies for users.
In this increasingly mobile-based workforce, 24/7 access is crucial, and the tools that SaaS-based accounting systems offer can be great liberators of time, but it will depend on the level of understanding of the end user. It can’t replace human judgment, so keep your financial professionals close.
Transitioning your company to cloud-based software is fairly simple and there are many to choose from depending on your needs, whether it be accounting, payroll, or purchasing. It’s crucial to identify the needs of your business and determine which software could benefit your company the most.