Cloud Accounting: How It Transforms Bookkeeping
In the past few decades, there has been a phenomenal rise in the users of cloud technology. Cloud computing has played a significant role in their transformation from educational institutions to production companies by fine-tuning their internal processes and making them more competitive.
Similarly, cloud technology brings in numerous benefits for a bookkeeping firm as well. It has allowed them to be more productive and efficient, with improved service quality. The cloud technology of today has dramatically modified this once ancient profession and made it much more flexible.
Here are five ways in which cloud accounting transforms bookkeeping:
1. Round The Clock Accessibility
In a conventional desktop environment, you cannot remotely access your data and applications, as everything is installed in that one particular device. It limits your employees’ accessibility, requiring them to be physically present in their office. Also, even if you provision portable devices like laptops, they can get accidentally lost or burgled, leading to financial and data losses. Cloud accounting allows you to access your bookkeeping data and applications from anywhere, anytime, from any device. Unlike the traditional setup, a cloud-hosted solution is not device-dependent and allows your employees to use any device to work remotely. This way, your employees can use their devices and provide bookkeeping services even from the comfort of their homes.
2. Seamless Multi-User Collaboration
Since bookkeeping is a data-extensive profession, a fair deal of collaboration with fellow bookkeepers or even clients is necessary. However, most bookkeepers collaborate traditionally and use emails to send the data. This dramatically slows them down, as they must first wait to receive the concerned data, edit it, and then send it back to their co-worker. With cloud accounting, all they need is to upload the data and provide its access to the stakeholders. All the stakeholders access a centralized database and make the desired changes. These changes get reflected instantly on the cloud servers. This way, your employees don’t need to get caught in a repetitive exchange of data while working together and collaborate seamlessly.
3. Top-Grade Security System
A bookkeeping firm deals with sensitive financial information, which, if illicitly exposed, causes damage to them and their clients. Thereby they must implement quality security measures that can efficiently safeguard their data and prevent illicit access. However, most organizations still use a traditional desktop setup that lacks modern anti-hacking tools and can be easily compromised. A reputed cloud provider has the required resources to provide a fool-proof security system. They deploy several quality security measures like IDPS software, MFA, bank-grade encryption, multiple firewalls, and even AI surveillance. Also, have an IT team that monitors your data round-the-clock and regularly updates the servers with the latest security patches.
4. Minimized IT Hassles
The IT infrastructure is the heart of any organization. It must be well-maintained and regularly updated for optimizing your organizational operations. However, managing an in-house IT setup is rather tedious and requires you to single-handedly manage all the repairs, replacements, and other processes. In the end, it significantly doubles your workload, making you responsible for its overall management. However, cloud accounting dramatically minimizes your IT management and allows you to focus more on your bookkeeping operations. All you need is to manage the end-user device, while the service provider will handle all the setup, management, and server maintenance. So, even if a fault occurs, all you need is to intimate them, and they will quickly resolve all your IT issues.
5. Better Time Management
Bookkeepers, like accountants, get paid in accordance with the hours spent on their tasks. Hence, a bookkeeping firm must have the measures that will enable them to accurately track time and aid their employees in maximizing their work output. Cloud accounting allows you to free two birds with one key. Instead of traditional time tracking methods, you can integrate time-tracking software within the cloud. This way, whenever your employees log in, the amount of time they spend while working will get recorded automatically. Also, as a cloud solution can be accessed from anywhere, anytime, your employees can better utilize their time and even work while commuting to complete their bookkeeping tasks.
Small or large, businesses can rely on cloud accounting to get their accounting statements right. The cloud offers unique benefits that provide reliable and efficient advantages that automate processes like data entry, report creation, and the like.
Wish to know cloud accounting can help your firm? Get in touch with our Solutions Consultant at 855-622-8313.