Cloud computing has unlocked a new space for technological development and enhancement. However, in the last few years, cloud computing has revolutionized many industries and accounting in not an exception. The cloud-based accounting software makes it easier even for small business to streamline their accounting process quickly and minimize expenses. Using online technology in accounting has become a norm.
A few years ago, organizations feared using online or their – party portal to secure their financial data. But, now everything is changing. Cloud-based accounting is versatile and has enough potential to operate both small and large businesses. Thus, to explore more opportunities for cloud computing in accounting here is a quick read for you.
What is Cloud Accounting?
Cloud accounting is also known as online accounting. It has the same functionality similar like desktop accounting. But now, all the data is transferred to the cloud and expanded. You have to log in and update the online solution on this cloud software, and all the information is safe on the cloud server.
How Cloud Computing is Changing Accounting Industry
Many organizations take time to move from the traditional approach to storing information on cloud-based software. Also, accounting firms have continually sought ways to enhance the data is being processed and stored. In the past, if data was lost, it was barely retrieved, and processing large amounts of information was quite challenging.
But now, the introduction of cloud computing in accounting brings a solution for thousands of accounting firms to secure sensitive data. Below are some of the statistics which show cloud computing is changing the course of accounting:
- Reportedly, 81% of enterprises have a multi-cloud strategy already laid out or in the works.
- Platform–as–Service (PaaS) is expected to grow in adoption to 56% by 2020.
- 82% of the workload will reside on cloud software.
An Amazon web service is one of the giant cloud computing market shares at 32%.
Benefits of Cloud Computing in Accounting
Accounting work moving from desktop to cloud has been a significant leap forward in financial management. But how does this cloud accounting benefits your business? So, let's discover. Below are some leading areas where cloud accounting system adds real and tangible value.
- Accessibility from Any Place
Isn't it excellent if you could access the data from anywhere in the world? Thus, computing on virtual servers almost solves all these issues. One of the main benefits of cloud-based accounting is that it enables your team to work from any place. When organization data is stored in cloud computing, you can achieve 100% remote accessibility. The only thing required to access it is a good internet connection.
- Improved Data Security
In reality, the client data is already compromised when filing taxes or managing the company's sensitive data. At that, the accountant should be careful of threats connected with using the software. Cyber security for accountants is a significant concern because of managing sensitive client and company data vulnerable to cyber-attacks.
But now, with cloud computing, the client's confidential information is stored in the cloud, where data security and privacy are assured. Data security will be beneficial for firms like:
- Round clock help
- Disaster recovery process
- End – to – End Encryption
- Constant data protection and monitoring
- Regular backups to secure data
- Access to Real-time Information
By marinating your bookkeeping and bank reconciliation updated, you can obtain real-time reporting. Rather than considering historical reports, which are days, weeks, or months out of date, now you have an instant overview of companies' financial position. The actual position is essential for seeing the cash flow, planning future expenses, and making wise strategic decisions.
- Pocket – Friendly
The subscription price on a cloud server is one of the alluring factors in accounting firms. Choosing cloud accounting frees you of the cost spent on equipment and programs used in traditional accounting.
Also, cloud software helps reduce costs as you are no longer required to pay for marinating accounting equipment. Additionally, your IT team gets more time to focus on server maintenance. Thus, cloud computing will be the ultimate solution for an accounting firm.
- Reduced Paperwork
In a traditional accounting system, the accountant has to manage paperwork or manual tasks, leading to slow and ineffective processes. With cloud accounting, accountants can significantly reduce reliance on paperwork and send a message via email. It also reduces printing costs and accelerates the online payment process.
All the bills and receipts are scanned and saved with associated transactions in accounting software. Your financial statements, reports, and other financial data are secured in the cloud, saving storage and filing space costs.
- Improved Client Relationships
The cloud-based accounting system will improve the relationship between accounting teams and organizations. The accountant can generate invoices online and access payroll, budgets, and management reports, which makes the accounting work transparent. However, sharing live data and real-time access improves customer relationships and makes the company more valuable.
Conclusion
Benefits like increased work efficiency, automation, and flexibility of work prove that cloud accounting is much awaited 'apple of the eye' of the accounting world. Thus, it is safe to say that cloud technology has allowed the accounting industry to stand apart and simultaneously make work enjoyable. Many organizations have started implementing this cloud technology; there will be many future opportunities careers in CIMA.
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