CPA firms today are becoming more and more strategic rather than just administrative. The growing necessity of having a sound and robust financial operation is vital for success in today’s cut-throat competitive corporate world. Businesses and enterprises now rely on instant, real-time information to deliver their services with increased agility and accuracy.
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Traditional accounting practices have now become archaic and somewhat obsolete since the inception of Cloud accounting and accounting software. Accounting firms, which still rely on outdated or non-integrated accounting systems, are considered to be operating on a significantly lower level of efficiency. But modern, technologically assisted accounting systems can remarkably increase efficiency and accuracy of financial information and also delivers exceptional advantages, vital for proper management and growth of accounting firms today.
Here are a 5 ways cloud computing can streamline your CPA firm.
1. Increased capacity & reduced risk
With a Cloud-based setup, CPA firms can now handle more clients and increase market reach without any security and financial hassles. The best thing about a Cloud setup is that it grows with your business requirements and necessities. Which means that in the event of scaling up or down, your Cloud accounting system will enable you to do so on a moments notice. Cloud accounting systems can be tailored to compliment businesses of any sort or size, large or small. It can also be configured to accommodate both your present as well as your future needs.
2. Better connectivity
Cloud accounting also enables CPA firms to offer better connectivity between the clients and all the other stakeholders, as all accounting information is available to all authorized personnel. Additionally, all files and the data they hold are updated in real time, and can also be accessed simultaneously by multiple users, again resulting in better communication across the board for all those involved. It also enables your firm and your employees to stay in touch with your clients, from anywhere in the world and at any time of day.
3. Data security & access controls
Many firms are also skeptical to adopt cloud accounting based on the misconceptions of data privacy and security. But the fact of the matter is that, Cloud accounting offers greater data security with numerous top notch digital security and privacy protocols. It offers a secure environment for all your clients and other stakeholders and even enforces accountability of data access and edits with logged data access protocols, which allow only authorized personnel to access confidential financial data.
4. Reduced data loss & swift recovery
With Cloud accounting, all financial data of clients are stored on secure remote servers along with many redundant copies. This is to ensure swift data recovery in the case of corrupted data or any other such technological issue. Cloud accounting also ensures reduced data loss, as all the files are securely stored on the Cloud (data servers). Even if a firm’s resources and infrastructure are destroyed in a natural disaster, the data is safe and secure in a remote location which enables them and their clients to resume their operations as soon as possible without any data loss.
5. Automation of manual processes & reduced errors
Automation is a huge business trend nowadays and for good reason too! Cloud accounting offers CPAs the ability to automate various time-consuming data intensive manual tasks like data entry, etc. Automation allows for greater and more effective collaboration within CPA firms, which in turn allows for better service quality. It also helps to significantly reduce human errors in such tasks which again drive efficiency and accuracy up. Today’s SaaS accounting services enable firms to do the same with a very cost-effective price tag, which is easy to manage and implement.
So there you have it! The benefit of the Cloud may be generic to put it straightforwardly, but the proper implementation and integration of the Cloud with CPA firms, bring to the table a great many advantages and benefits which help to streamline their operations.