Last updated on January 16th, 2023
Everyone is aware of cloud computing, but few truly appreciate its various advantages. In several ways, cloud technology has added potential to the businesses. With the easy connectivity provided by the internet, cloud computing is changing the very fundamentals of businesses all over the world.
But the question remains: How is cloud technology modifying the business landscape? The following points provide an answer:
- Helping businesses fulfill their needs satisfactorily
- Exploring all the growth possibilities for a business
- Cash position and cash flow estimations can be viewed anytime
One of the most exciting developments in recent years has been the evolution of cloud accounting. The accounting system can be viewed in a private space online with cloud-accounting. It allows accountants a lot more flexibility and freedom in doing their work.
A survey done by Bill.com has concluded that 50% of accounting professionals support the idea of switching over to paperless payments. Moreover, 41% intend to opt for a cloud-based client payment solution within 6 months. The following points give an insight on why accountants prefer cloud-based payments:
1. Accounting System Can be Viewed Anytime
Paperless billing is really time-efficient and finances can be managed easily. Cloud-based bill pay solutions enable best practices that minimize the complex billing issues. It enables real-time visibility to finances that allow bookkeepers to create billing reports and dashboards anytime.
Users can function smoothly in any of the following situations:
- The absence of server connected to PCs
- Visibility to business cash flow required for making payments
- The access to files is required periodically
2. Device Not a Restriction to View Finances
Cloud Accounting allows for multi-device accessibility. These way users can collaborate even if they are running different operating systems or even different devices (a Pc or a mobile). Cloud accounting is helping accountants all over the globe to collaborate with clients and with each other better.
- Dependency on Ecosystem gets eliminated
- Feasibility to make the payments from any device eliminates the intermediaries
- Allows bookkeepers take stringent control over the crux of the finances
3. Better Control over Finances
Cloud accounting can save the financial portfolio of the businesses. As hardware and maintenance costs are reduced to a significant extent, the budget can be proportioned to more important factors pertaining to the firm.
The expense on cloud accounting set-up depends on:
- The accounting software that has been chosen.
- Whether you opt for SaaS or hosting desktop software
- The strength of users accessing the software
- The necessary features needed and whether you can get them in the add-on or in the core
4. Simplified Business Sense for Fraud Management
Efficient resource control and task assignment can be easily done with the help of cloud-enabled services. From the past few years, it has been observed that CPAs are no longer dependent on paper-based billing.
It is helping businesses to:
- Monitor the spending pattern in case your business faces a downfall.
- Analyze the spending pattern to formulate a better business plan.
- Take a call on rising concern over the growing connection between paper-based payments and fraud.
Above mentioned survey made by industry experts also reveal that the use of paper checks worry many accounting professionals, with 45% expressing concern over the fraud potential posed by paper-based payments.
The possibilities offered by cloud do not end here. Companies moving beyond the standard protocols, now have the channels to merge systems of management and record within a hybrid cloud to provide inter-functionality. Cloud technology eliminates the need to invest in standalone servers and software that are capital intensive but not in use a majority of the time.
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