Cloud accounting is a modern accounting technique which is more of an operational strategy rather than a simple technique. However the accounting industry has been somewhat slow in terms of adoption rates when it comes to Cloud Accounting, but it is predicted to become an industry norm in the very near future. In this blog, we will try to differentiate facts from the myths and also delve deeper into the numerous benefits offered by Cloud Accounting practices.
Image Credit: Web elements By Freepik
What is Cloud Accounting?
For the laymen, Cloud accounting is simply accounting done through a Cloud-based IT infrastructure. Accounting software such as QuickBooks, Sage have been used to accompany traditional accounting practices for quite some time. Cloud accounting only takes this a step further by implementing the Cloud and its benefits. So instead of just having access to accounting data and software on your local systems, now you gain the ability to access them from anywhere in the world and at any time of the day, with a simple web-enabled device. All of your data is stored securely in remote servers behind multiple layers of redundant digital security measures.
In other words, Cloud accounting merges conventional accounting practices with the Cloud and allows accountants and accounting firms to deliver quicker and more decisive services to their clients and at the same time also promotes greater collaboration and efficiency among stakeholders and partners.
Benefits of Cloud Accounting
The benefits of Cloud Accounting extends not only to accountants and CPAs but also to businesses and clients. Here a few benefits of using Cloud Accounting solutions over traditional accounting practices.
1. Reduced IT costs and other operational costs as you only need to pay for the resources that you use.
2. Efficient and quick data flow and processing for real time data updation of financial and other accounting data, which also offers an instant financial overview.
3. Multi-user access, which allows users to simultaneously work on the same file at the same time.
4. Automatic updates and data backup for greater reliability, while eliminating additional hardware and software costs at the same time.
5. Unparalleled data security features compared to conventional in-house IT infrastructures.
6. Greater collaborative opportunities for clients and partners.
7. Scalable and cost effective options and strategies to match operational requirements.
8. Anytime and anywhere access to data and software.
9. Better accountability measures.
10. Seamless data sync with banks and other stakeholders.
11. A more streamlined process for greater accuracy of financial data.
12. Automated data entry features which allows accountants to save time by eliminating tedious data entry tasks.
The beauty of Cloud Accounting is that it speeds up the whole accounting process and allows accountants and bookkeepers to deliver quicker and more significant services to their clients, while the clients themselves can assess their financial footing in real time. The clients can also restrict and monitor access to their confidential data for an even more secure and accountable data flow. It not only helps users to gain immense collaborative benefits but also has many digital measures in place to keep confidential financial data safe with numerous state-of-the-art digital security measures.
In today’s fast-paced world, accountants and accounting firms have to face crushing competition to stay relevant and on the top. They now have to streamline their services to such an extent, so that they can be seamlessly integrated with any organization. They have to deliver quality services and business insights that help them become a business complementing service rather than just a business necessity. The Cloud and Cloud accounting strategies help accountants and bookkeepers become more systematic and coherent and also allows them to rise above the competition by enabling them to deliver quicker and better services.