If you're a businessperson looking for the opportunity to save time, money, and hassles, consider joining the increasing number of businesses turning to cloud-based software solutions. Why the sudden interest in using software that's "in the cloud?” It's simple. Like other software-as-a-service (SaaS) options, the benefits of cloud accounting beat out the traditional form of business accounting in many ways.
Cloud Accounting Costs Less
One of the first areas where cloud accounting outscores traditional accounting is the cost. With a cloud-based system, businesses don't make a lump-sum purchase of a program, or buy and set up a server to host it. This minimizes IT professional fees and helps you avoid installation fees altogether. As accounting rules and tax regulations change, you won’t have to purchase and install updates. Instead, your monthly or annual subscription cost includes the updating cost, and these are completed by your provider as needed.
Real-Time Information Updating
One of the common problems with traditional accounting systems involved updating accounting information. When one figure needed to be changed, it meant manually recording the change in each location where the figure appeared, including forms, ledgers, and other documents. With cloud accounting, when new data is entered, it populates each location where it's required. This saves time, money, and potential headaches that could arise if any locations are missed.
24/7 Accessibility to All Accounting Info
With traditional accounting, access to your business's detailed financial information was limited by when your accounting professional was available, or when you could get to the office to review the paper-based records or even the desktop computer holding the information. One of the big benefits of cloud computing is accessibility. As long as you have internet access, your accounting records are as close as your mobile device. It's at your fingertips in a matter of minutes.
Cloud accounting benefits entire business teams because the data is available to all authorized users at all times. It's easily scalable. Adding new users is simple—just set up an authorized profile and password and you're ready to go. Even better, it makes collaboration easier. There’s no more need to gather in one office and take turns to reviewing important documents. All authorized users with access to the internet can see accounting data simultaneously, from wherever they may be.
Remember when computer accounting packages first hit the market? While they may have been an improvement over the previous paper-based systems, if there were any problems with the program, users were required to wait patiently for the next version for the bugs to be fixed. Among the benefits of cloud accounting, fixing software issues immediately is among the most important.
Automatic Data Back Up and Restoration
Another area where cloud accounting trumps traditional accounting is when it comes to automatic data back up and restoration. It wasn't that long ago that daily, weekly, and/or monthly data backup had to be scheduled into your workweek. And then someone had to manually backup your recent accounting information.
Cloud accounting allows automatic data backup, removing the possibility of forgetting to do it, and reducing the opportunity to make human errors. Instead, accounting information is backed up automatically and saved to an offsite location. This helps secure your information in the event of a break-in, fire, or other incident that could put sensitive and important information at risk. And should your business experience one of these incidences, your cloud-based service provider can help you restore your data, getting your business back up and running quickly to minimize the impact and inconvenience to your customers.
If you're serious about simplifying the financial aspects of your business, and saving time and money in the process, consider the benefits of cloud accounting.