Last updated on July 18th, 2022
In earlier times, CPAs struggled with passing around the bundle of accounting files back and forth and making a note of each document to eliminate the chance of any critical data loss. Now that digitalization is changing at a rapid pace, it has made accounting firms to adopt modern technologies.
Technologies such as cloud computing, blockchain, and Artificial Intelligence have caught the attention of accountants. They have the features that include automating the process and reducing the security risks that usually occur in exchanging the information.
According to Gartner, organizations that are already using cloud technology for their business will adopt an all-in cloud strategy in the coming 2021 year, making their practice future-proof.
Let us dig a deeper to find out how the cloud can help CPAs make their practice modern and future-proof:
1. Cloud Technology Provides Security for Data
Many accountants show concerns regarding data security as the accounting data contains the most sensitive information. When the data is stored in the local hardware or local IT setup, it is prone to damage, resulting in data loss.
To retrieve the data, you will need the backup servers. What happens to the data at the time of a natural disaster? You will fail to access your data even after having backup servers at this time.
But with cloud, you can achieve high-level data security. The cloud’s security architecture is multi-layered, and the data is stored centrally in a secure location. Hence, any damage to the device you are working on does not affect the efficiency of the CPAs.
Cloud also safeguards against cyber-attacks such as ransomware and reduces the risk of the data breach.
2. Cloud Technology Provides Unlimited Mobility
As an accountant, you have to be available for your clients and teams so that you don’t miss any important updates about the project. There might be cases when you are not physically present at the office.
It becomes difficult to respond to the client’s request when at a distant location. This poses a significant challenge to the accountants.
When you use cloud technology, you can leave out the stress about data availability. Cloud technology gives an accountant the real-time ability to access the data from anywhere across the globe and from any device like smartphones, tablets, and desktop.
You will have all your projects handy and can collaborate anytime with the team members.
3. Cloud Technology Helps in Cost-Reduction
Having an on-premise IT infrastructure requires upgrades and maintenance. In addition to this, the cost incurred in purchasing the hardware and office equipment might also cost you extra bucks.
Moreover, you regularly have to check the functioning of the hardware as they become obsolete after a specific time. An IT team is also required who will take care of all your set up and maintenance, and paying them can make you go out of budget.
The only cost involved in moving entirely to the cloud is the amount charged by your cloud service provider to host your applications and data. You don’t have to worry about the maintenance and upgrades as the cloud service provider will do it for you.
4. Cloud Technology Offers Scalability
The nature of businesses is often unpredictable, and so is the demand. If you are running a business with fewer employees, there might be a progression point in your organization when the demand increases.
With the increased demand, you will eventually have to hire additional workforce, who will, in turn, require more system resources.
Scalability is an essential factor that makes the CPA’s practice future-proof. Due to the flexibility cloud offers, it becomes easy to add any number of users you wish. You can upgrade and downgrade the system resources you need according to the increasing and decreasing demand and growth of your business.
5. Cloud Technology Helps in Global Expansion
When a CPA starts their firm or want to serve the clients globally, they need a well-defined accounting system that can help them collaborate with the clients anytime and respond to their requests that requires immediate actions.
Moreover, if we think of the expansion in hiring terms, the accounting firms can’t hire employees who are at a distant location from the office.
As the cloud enables real-time collaboration, you can expand your reach and hire skilled employees from any part of the world to work for your firm. As remote work has become a trend now, hiring employees around the world and making them work with you in real-time can be of great help to your business.
Moreover, you can also onboard clients from any location as cloud makes the sharing of information from remote locations seamless.
As we go by the trend, cloud has already been adopted as a modern technology by many companies. Cloud is the future of technology because of the features it offers, and most importantly, how it mitigates the risk of data security accountants face.
Moving to cloud can help you outrank the competition, future-proof your CPA practice, and compete in the market.
Want to know more about how cloud can make CPAs practice modern and future proof? Talk to our Solutions Consultant at 855-910-6927.
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