Last updated on July 18th, 2022
Out of many factors affecting the growth of an accounting business, organizational efficiency plays a rather crucial role. Without a proper efficiency ratio, business growth suffers drastically from the wastage of critical resources.
However, with cloud accounting, you can optimize your accounting business and enjoy improved efficiency levels.
Investing in the cloud means you get different kinds of computational resources like storage, applications, business tools, etc., over the Internet. While you can have your own cloud setup, it is better to avail it from a third-party Cloud Service Provider (CSP), as it is much more flexible and cost-effective.
With the cloud, you can remotely access your business applications, have quality data protection, and even scale up/down on the necessary computational resources with ease. It is the reason why many businesses are now moving to the cloud to optimize their business efficiency.
Here are 5 ways in which the cloud helps you achieve higher efficiency levels:
1. Easy user collaboration
Collaboration is an integral part of the accounting sector as accountants have to collaborate with clients and fellow co-workers. A proper collaborative environment ultimately enables them to timely complete their tasks and achieve higher accuracy levels. However, most of the CPAs still collaborate traditionally, repeatedly sending the edited versions of the same files back and forth. This method is inefficient and time-consuming. It drastically impacts their system performance as the redundant copies of the same data fill up the database and slow it down.
However, in a cloud-based accounting solution set up by a service provider, workers can easily collaborate with greater efficiency. In a cloud server, data access is centralized. Your clients, employees, and other stakeholders can easily collaborate in real-time and simultaneously work on the same data. It eliminates the need to send the files back and forth as the changes made to the data are reflected immediately.
2. Greater paperless freedom
It is no hidden fact that going paperless empowers a business to be more efficient. A paperless environment eliminates the need for constant physical organization of the documents, a task which, if not properly managed, can cost your employees anything from a few minutes to even hours while searching for them. Also, it has other benefits as well that considerably ramp up your operational efficiency. However, as beneficial as it may sound, it is not easy to set up a paperless environment. After going paperless, most organizations store their data locally. So when their local storage is damaged (due to environmental or other factors), they ultimately lose their data, which drastically affects their organizational operations.
Cloud accounting empowers your business to work in a paperless environment with continuous data availability seamlessly. Your data is stored in the cloud and is regularly backed up, which can be accessed anytime from anywhere. A reputed CSP backs up your data on several data centers that are interconnected and maintained at locations less prone to environmental damage. They even implement in-house safety solutions like a smoke/fire detection system to prevent any mishap, ensuring continuous data availability for a seamless, paperless accounting experience.
3. Minimized IT hassle
In this modern world, accounting organizations cannot operate efficiently without a proper IT setup. They need an up-to-date and well-maintained IT infrastructure for carrying out their daily tasks. However, establishing an in-house IT infrastructure is not an easy task. Your firm is responsible for managing its deployment, repair/replacement, and other miscellaneous expenses.
Most accounting businesses also use various add-ons alongside their accounting software (which dramatically improve their business efficiency) that significantly increase their computational load. And this is where the main problem lies. Any disruption in the in-house IT services directly affects your employees — the more extended the outage, the lower your operational efficiency.
Also, what about the frequent repairs and updates that you must manage on your own?
Moving to a cloud-based accounting service empowers you to enjoy undisturbed IT service with SLA-backed at least 99.999% uptime availability. Additionally, reputed service providers offer High-Performance Computing (HPC) servers that allow you to integrate multiple add-ons without suffering from any system latency. Moreover, the best part about it is, you don’t have to worry about IT maintenance. Apart from the end-user device, everything is established and managed by your cloud provider’s expert team that can be easily reached round the clock during any disruption.
4. Remote Accounting
There was a time when the physical presence of the employees was a must in the office premises to complete any task. However, with the advent of the latest technology, most notably the cloud, organizations now can easily avail remote working options. Working remotely carries numerous benefits, ultimately allowing a business to be more efficient with a better work output. By working remotely, employees are able to exhibit increased efficiency as they do not waste their time commuting to the office and can utilize the time to complete the tasks. Also, since everything is remotely managed, you can even easily hire the best talents from around the world and bring in skilled workers for your organization.
Similarly, accounting businesses too can utilize the cloud to maximize their efficiency. Various accounting software like QuickBooks, Sage, and Xero can be easily hosted on the cloud, making them accessible from anywhere, anytime. Also, a cloud environment has a multi-tier security framework with modern anti-hacking tools. So, even if your employees work remotely and use their own devices, your data is safely stored in the cloud and cannot be illicitly accessed.
5. Streamlined Work Processes
How often must it have happened that your employees made mistakes while entering the data manually? Or someone made auditing errors, but it took you hours to rectify it finally. Traditional accounting processes require a lot of manual effort, which carries a greater chance of mistakes. This ultimately lowers down your organizational efficiency and affects operational capacity.
However, with the cloud, you can automate various processes and improve your working efficiency. For example, let’s take the example of client invoice management. All your customers need to do is simply upload their invoices to the cloud server. Then, an OCR software (Optical Character Recognition) automatically picks up the necessary details from the invoice and processes it further. This way, you can avoid filling invoices manually and minimize such errors for better efficiency. Also, since the cloud acts as a reservoir for different applications and software, you can integrate everything within a shared space and remotely access it to carry out various work processes.
Cloud accounting offers several advantages that allow firms to be more efficient. It enables a unique accounting experience by providing firms a future-proof implementation.
If you, too, want a future-proof technology that makes your accounting processes more efficient, now is the time to opt for it. Get in touch with our Solutions Consultant at 855-879-5481.
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