Cloud computing has been growing in popularity the past few years, with businesses of all types adopting the technology. In accounting sector, the benefits are apparent with increased productivity and collaboration.
What is Cloud Accounting?
Cloud accounting is the practice of accessing accounting software via internet or network through cloud application service provider. Data is stored on the cloud i.e. on the remote server, which means that there is no actual hardware involved.
Cloud accounting has enabled clients and accountants to work on the same system simultaneously irrespective of their location.
Why cloud accounting?
1. Cost saving: Since there’s no hardware involved with cloud accounting, business costs are significantly reduced. Companies can invest this money on improving other business operations.
2. Comfort: Cloud accounting provides real time, online access to your accounting and finances, wherever you are, with any device. And when data is easily accessible and fluid, the possibilities are endless.
3. Always up-to-date: Software updates are delivered more easily and faster in the cloud as compared to traditional accounting. You can access new features instantly without worrying about installing the latest version of the software.
4. Less maintenance: When your accounting software such as QuickBooks is hosted on the cloud, it requires less maintenance as the cloud provider takes automatic backups, software updates occur automatically and there is no need to install or download on the local computer.
5. Better collaboration: Cloud allows shared access among the client and accountants which creates a more connected and cooperative relationship. This leads to seamless workflow, which further increases efficiency and productivity.
To understand cloud accounting better, we’ve created an infographic to explain what cloud accounting is, how it works, what sort of companies it is good for, and what benefits it offers.
Infographic: Cloud Accounting – Is Your Business Ready?
What about security in the cloud?
Security is critical for any organization and is particularly important when it involves accounting. Cloud is a more secure platform to store your data than the traditional system. For example, if your system is stolen, no one can access your data on the cloud without having details of the online account or web login-password.
Cloud services are run by trained professionals who prioritize data security and use state-of-art servers which are designed to ward off hackers. Data centers regularly undergo third-party certifications and various evaluations to ensure complete safety.
Are you using cloud accounting? How are your results? or Are you still planning to move your business accounting to the cloud? We’d love to hear you all in the comments section.
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