Why Every Accountant Should Be Using the Cloud
Cloud computing is quickly emerging as a cost-effective way to improve organizational efficiency. Just about any type of business can benefit from cloud investments. For instance, as an accounting firm, switching to cloud-based accounting software can help you operate more efficiently, reduce costs, and amplify results.
Unlike traditional accounting, where all application functions are performed on the user’s desktop, cloud-based accounting is executed using software hosted remotely on the cloud. There’s no desktop application. Cloud-based accounting software is usually available as a SaaS (Software as a Service) subscription model.
Cloud-based accounting offers numerous advantages over traditional, on-site accounting. Keep reading to learn how moving your accounting to the cloud can improve your business.
Benefits of Cloud-Based Accounting
How can accounting professionals benefit from using cloud storage? The cloud-based accounting landscape consists of many software solutions designed to execute various bookkeeping/accounting functions. Cloud-based accounting software provides a plethora of features to optimize and grow your business.
Here are some of the key features of cloud-based accounting software and the benefits it brings to your business.
Automation
One of the most important features offered by cloud-based accounting solutions is automation. The ability to automate various manual accounting and bookkeeping processes improves efficiency and saves time, allowing accountants to focus on tasks that are more important.
Automation reduces the time accountants need to perform rudimentary tasks dramatically. For instance, accounting professionals don’t have to waste time performing routine tasks such as saving their work or doing data backups.
Cloud-based accounting software saves your work and backs up data automatically as you go, saving your organization money and time on tedious backup procedures.
Flexibility
Compared to traditional, old-fashioned accounting software, cloud-based accounting software is more flexible. When using old-fashioned, desktop-based systems, accounting professionals are effectively tied to one central office-based computer. That’s not the case with cloud-based accounting solutions.
Cloud-based accounting software gives users access to accounts and key financial figures 24/7, from any location, as long as they have Wi-Fi and an internet connection. Users can log in via a mobile app or a web browser to access their accounts from a laptop or smartphone/tablet.
It doesn’t matter where you are; you always have access to your accounts. You don’t have to be in the office to help a client or a colleague. For instance, you can upload and send IRS forms to a client anywhere you are.
Scalability
Scalability refers to a system’s ability to accommodate growth or handle an increasing amount of work. As your business continues to grow, your traditional accounting system may have trouble keeping up. Most cloud-based accounting solutions are designed to scale your business.
Cloud-based accounting solutions offer various ways to enhance what you can do. For instance, some cloud solutions come in multiple versions so that you can upgrade to a more comprehensive option as the business grows. Others come with add-ons and modules that you can integrate to meet the growing needs of your business.
This level of scalability can also help you save money on accounting software. You can take advantage of these features to scale resources up or down whenever necessary to make sure that you only pay for what you need.
Security
While there are many things to consider when evaluating accounting software, security is arguably the most important especially considering the sensitivity of the data associated with accounting processes (banking and financial data). Every accounting professional has a fiduciary and legal duty to protect their clients’ data.
So, how do you guarantee the security of this information?
Cloud accounting solutions provide a more secure way of storing financial information than traditional accounting software. Data is stored on multiple servers, and cloud providers go to great lengths to secure these servers digitally and physically. For instance, all your accounting data is encrypted at the source.
Software updates have also become a thing of the past on a cloud platform. With automatic software updates, you’re always using the latest version of the software, so you don’t have to worry about cybercriminals exploiting old vulnerabilities to launch attacks. Your provider applies security fixes automatically.
Managed by professionals who are truly versed in the technology and understand the regulations, a secure cloud storage service is evidently your best bet when it comes to keeping your clients’ data secure.
Ease of Use
Many accountants shy away from cloud computing because they think they have to be tech-savvy to use cloud applications. Contrary to popular belief, most cloud-based accounting solutions are pretty intuitive to use. You don’t need to have a tech background to use most cloud applications.
In fact, most cloud-based accounting solutions are more user-friendly than traditional accounting software. Because they are easy to use, cloud accounting solutions streamline accounting functions and give you better control of your core financial processes.
Collaboration
Cloud-based accounting software allows users to access all the key data from anywhere they have access to the internet. This accessibility boosts collaboration. Team members, management, advisors, and other stakeholders can access books and any other information they need via the internet.
As a result, working with colleagues and sharing data with advisors becomes very easy. The traditional desktop approach to accounting is severely limiting when it comes to access, which makes collaboration with colleagues, the management team, and advisors incredibly hard.
With cloud-based accounting software, multiple users can collaborate and work together anywhere, anytime through access across devices such as laptops, mobiles, and apps.
Wrapping Up
Cloud computing is the future of the accounting industry. Cloud-based accounting can streamline your financial processes, increase the efficiency of your bookkeeping, and provide access to accounts and important financial figures at anytime, anywhere. But there’s no limit to the benefits the cloud can offer accounting professionals and their organizations.
Switching to cloud-based accounting software brings more scalability, flexibility, security, and productivity to accountants and businesses in general. Mathe Inc. specializes in delivering secure cloud desktop solutions for organizations throughout the United States. Contact us to get expert help on how to leverage the power of cloud computing in your business.
Thanks to our friend Holden Watne, a Los Angeles IT services professional for his help with this article.
With over 35 years in the business of supporting and implementing technology for the SME market, and 6 years previously in Corporate IT and Voice. I have seen a great deal of change. The only common thread is I have always focused on the Business Wise application of Technology. We always try to look 5 years ahead of the current technology to make sure our clients are on the right track to meet current and future needs.
