Last updated on January 16th, 2023
Pick any of the popular accounting software and think about its current development focus. There would hardly be a case in which the Cloud is not involved. Sage, QuickBooks, Xero, FreshBooks, and all other accounting software giants are already up with various Cloud-based solutions to serve the accounting needs of SMBs and CPAs.
Many experts have predicted that the desktop version of accounting software may not last long and the Cloud-based solutions will remain as the only available option. But, there is nothing that businesses should worry about because the shift to Cloud accounting holds many benefits for the businesses. The following are some of the benefits of Cloud accounting that businesses are going to cherish upon:
Accounting data can carry most vital details of the business. Bargained prices, customer refunds, stock availability, employee salaries, crucial account numbers, and many other vital pieces of information reside in the accounting data. Perhaps enough has been said to highlight the importance of security needs of accounts data. Cloud-based accounting solutions such as QuickBooks Cloud come packed with some powerful security features and end-to-end encryption being strongest of them. All this secures the data and hence, lends some peace of mind for CPAs and SMBs.
For online accounting software, accounting processes are not executed on the local device, but on the virtual server. This virtual server is accessible using internet connection. This also enables the compatible mobile devices, such as smartphones and tablets, to access the accounting software. So, the accountants can work on the file using any of their supported devices from anywhere, without installing the software physically.
3. Multi-User Collaboration
Multi-user collaboration can never go out of count when benefits of Cloud are discussed. With accounting software as well, the Cloud allows different users to work on the same file in real-time, which opens the facility of better monitoring and efficient use of workforce. Most of Cloud-based accounting software offer customizable permissions for various users, which maintain the security standards.
The importance of data security has already been discussed above, but it was not mentioned that not only the theft but data loss itself can be very disturbing for a business. Physical devices are always prone to system crash, OS failures, external attacks etc. that can cause permanent loss of data. Regular backup remains as the only way to stay safe. Most of the users know this, but only the rarest of them are disciplined enough to maintain the regular backup. Cloud accounting software is able to maintain the backups of the data automatically.
5. Lesser Hardware and Space Requirement
Cloud is centered on a virtual server that is accessible via a network. Hence, the businesses do not require dedicated machines to be installed on the valuable office premises. Hardware and space expenses cost very dearly for the businesses. Opting for the Cloud software can be a very affordable deal because they offer comparatively inexpensive plans and do not cause a big hole in the pocket.
6. Better Outsourcing Options
Outsourcing has always been a cost-effective and efficient method. Yet, most businesses have shied away from going with outsourcing for the accounting needs. The reason has vastly rested on the security and the privacy of the accounting data. Cloud accounting software are offering very reliable solutions on the privacy and security grounds, the outsourcing of accounting is pretty much among the trustable options.
Cloud accounting is the future for the accounting and finance industry, and could propel your small business into a new level of success. What are your thoughts about Cloud accounting? Please share in comments.
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