Business January 1, 2020 Last updated December 31st, 2019 133 Reads share

Benefits of Cloud Accounting

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Effective cloud accounting for business growth with assistance from Online accountants

Constant digital evolution accompanied by the development in technology and processing power has resulted in a huge data explosion. This data is waiting to be exploited in limitless ways to make intuitive, smart and creative decisions. Online Accountants and Software Providers are tirelessly working with businesses to find creative tools, solutions, and methodologies to extract maximum value from this new era. 

This development has resulted in the transformation of a traditional finance function to a digital finance function, with support from various cloud solutions, online accountants and experts. A survey conducted by Xero in 2017 confirmed that businesses that rely solely on cloud accounting have five times the number of customers than businesses that do not.

Related: Why not review the Top Cloud Accounting software

Does the use of online accounting software outweigh the benefits of using traditional software? Small businesses found it extremely hard to afford high-level encrypted software with the same features as an ERP, before the launch of cloud accounting software. 

Businesses are now able to afford software which is not only cheaper to implement but also scalable as they grow. It lets owners and their employees access their business information from anywhere in the world and at any time, allowing them to excel at their business performance, all the while identifying tremendous new opportunities to grow and expand. 

Cloud Accounting

Related: How Cloud Accounting Can Benefit Your Small Business (Visual Infographic)

Cloud! What is the hype all about?

Cloud technology has enabled businesses to access complex data securely with the added protection from data loss through hardware malfunctions by using multiple network backups.

In addition, the cloud has helped entrepreneurs save a tremendous amount of time and effort, through intuitive dashboards, realtime reminders, effective automation, visual snapshots, effective communication with their online accountants and much more, granting them the opportunity to implement their ideas with effectiveness and creativity like never before.

Why you should think about getting rid of your traditional accounting system?

We will look at 5 significant reasons why you should discard your traditional accounting system and embrace the new cloud accounting system:

  1. In a traditional system, you will rely on a technologically outdated database, increasing your chances of error in financial reporting, resulting in poor decision making.
  2. Data is stored locally restricting access to a single location by a single user, multiple users will cost extra in infrastructure and security. This will prevent the key decision-makers from accessing valuable financial and customer data.
  3. Traditional accounting software is somewhat high maintenance and complicated to back up, it also demands a lot of time and resources to update.
  4. Data transfer from the source user to other users in the company requires hard drives and USB. These devices are not trustworthy and hold a significant probability of malfunction anytime.
  5. Traditional accounting software might not offer comprehensive or satisfactory customer support, potential problems might also not be resolved remotely, delaying key processes.

If your online Accountants are not adding value to your business by utilizing your cloud accounting software, you should speak to them to understand why or think about switching accountants.

Security on Cloud Accounting Software

Losing your office infrastructure due to an incident, say a fire, is not as heartbreaking as losing your financial data that your business has gathered over a number of years.

Cloud technology will keep you backed up and running due to its shift of storing data from a local device to multiple storage locations around the globe. All you require to access your data is an internet connection. PC Mag explains in detail how cloud computing works.

As long as you keep your login details safe, you don’t have to worry about anyone breaching your business data. 

Cloud technology allows data owners to control the level and type of access their employees have to the software. Cloud Accounting software uses bank-grade encryption so it is as secure as your bank if not more. 

Research carried out by Kaspersky Lab revealed that 90% of cybersecurity issues arose as a result of human errors rather than a glitch or weakness in the technology itself.

Perks of having the cloud and your accounting software integrated

You can access your data in real-time, at any time and from any computer device around the world but at a fraction of the cost compared to having in-house data servers. This usually results in effective communication between entrepreneurs, their accountants, and managers. 

The intuitive infrastructure of a cloud software prevents businesses from purchasing and installing expensive applications on their local devices, a simple monthly subscription is all that is required. The software comes with security, safety and a vanilla structure that can be built upon using addons and APIs.

You should speak to an online accountant who understands your business and its needs before setting up a good cloud accounting software. Your online accountants will make sure they help you find the right software based on your business type, your specific needs, and the future business goals.

Online Accountants

Learn how you can grow your business by employing cloud accounting software?

  1. A good cloud accounting software allows multiple users to work simultaneously together, thus making the overall communication and productivity highly effective.
  2. With the feature of automatic updates, individuals save more time which can then be invested in other time-consuming and value-adding activities.
  3. Accessibility of data regardless of the location or time zone allows entrepreneurs to assess their company’s financial position accurately, while instantly identifying the weak performing areas of the business.
  4. Cloud software are extremely cost-effective because they require reduced maintenance for upgrades and administration. The complete managed service prevents major server failures as these are dealt with by your cloud service provider.
  5. Cloud technology has employed automated features in its functionality that allows its users freedom from stressful administrative tasks.
  6. Other than security, automation, ease of access, etc. the scalability cloud accounting software provide add immense value to growing businesses.

Expert Online Accountants will make sure that they help you select the best system for your business, set it up effectively and train you on the most efficient way to use it.

Thao Le

Thao Le

Thao Le is a Senior Accounting Manager at Clear House Accountants. Having worked and grown in the industry for a number of years she is now responsible for a team of accountants, tax planners and bookkeepers, working with them to help clients from a variety of industries, grow, save money and plan for the future. Thao holds a Bachelor and Masters degree in Accounting and Finance and is currently working towards her ACCA, she is also a Xero and Quickbooks Certified Advisor. Thao believes her expertise lies in high-level tax planning, management accounting and strategic business planning based on financial performance and business analytics. Her experience, expertise and knowledge make her an exceptional contributor at clear house towards various articles and research content.

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