While running a business, you need to keep a tab on so many things such as the solvency and profitability. If your accounting software is not available on the cloud, the entire affair can become tedious and your business may end up becoming a time and money guzzler. This doesn’t add any value to the business and can take the fun out of being in business.
So what exactly is this “cloud”?
Well, in all probability, you use the cloud every day. Think of your favorite net banking feature. Every time you access your banking data through the internet, you’re using the cloud. The cloud technology allows users to use the software from anywhere, anytime from any device. You can do the same thing on the accounting software hosted on the cloud. Your clients may not need to be dependent on a single machine to access their data. Instead, they can access it online from anywhere.
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Problems with traditional accounting software
- Manually entering data into different systems leaves room for errors and mistakes.
- The cost of using a traditional accounting software is relatively higher.
- While purchasing a desktop software, you are paying for the software at a point in time. For major software upgrades, you would need to buy the new software, else you could miss out some key features.
- With traditional accounting software, data backups have to be done manually.
- The software is limited to one or two local machines, which puts restrictions on the number of users who can work on the software.
What makes ‘cloud’ and ‘accounting’ the perfect match?
Whether it’s to foster team collaboration, streamline data management or provide flexibility, accounting on the cloud has numerous benefits. The cloud can make it easier to view your invoices, bank balances, cash flow, and bills and expenses anytime, from anywhere. You can also control user’s access modes, ensuring complete security of your data.
Cloud allows data to be accessed from anywhere which is an attractive alternative to manual bookkeeping. You can use a tablet, laptop or a smartphone to access data securely. Sharing files can significantly improve real-time management insight and action. As long as you have an internet connection, you won’t find working on the cloud too foreign.
5 Ways Cloud Benefits Your Business
- Since everything on the cloud is run online, you don’t need to install anything. Cloud service providers provide regular automatic backups and free updates.
- When managed properly, cloud accounting can give you a clear overview of your business’s current financial position, in real time.
- Multi-user access allows your team and advisors to collaborate online, as and when required.
- There is a reduced business cost server failure, maintenance, upgrade and administration costs are no longer your concerns.
- With customizable user access, cloud accounting helps your track fraud activity before any damage is done to your business.
How Cloud Is Safer Than Ever?
Accountants are the keepers of sensitive financial data and expect a high level of security. Because of a number of benefits provided by the cloud, concerns about the security of data are being raised and it remains the main barrier for most accounting firms to move to the cloud.
The good news is that cloud is actually more secure than on-premise data storage. For instance, your computer or laptop having critical company financial data could be stolen, which could lead to an information breach. However, on the cloud, access to that information is encrypted and leaves no trace of financial data on computers.
Most cloud providers are subject to outside audits. AICPA performs regular audits on cloud accounting systems to ensure that the data is secure. According to a Forrester Research, cloud systems had achieved a widespread adoption in 2015 and will continue to grow in 2016 and beyond.