Cloud computing has brought about a revolution in our lives. From using social media to paying bills through online banking, we are always on the move. The domain of accounting has also been affected and statistics point to a massive change in the domain of accounting in the form of cloud accounting. This term implies the usage of cloud computing for managing the accounts instead of desktop accounting. Apart from providing the benefit of mobility, it provides a lot of additional benefits which only cloud-based computing can offer. An accounting practice can benefit immensely by moving from desktop-based accounting to cloud. Below are some of the core benefits of moving clients to cloud based accounting.
Flexibility of Work
Cloud accounting allows you to access your accounting application as well as data anytime, anywhere and with any device connected to internet such as desktops, laptops, smartphones and tablets. Your data is available 24×7 and all-round the year which was never possible in the era of desktop computing.
Realtime Information
Since multiple users can work at the same time, the data on a cloud-based system is always updated and provides real-time insight. It provides a clear and real-time overview of the financial position of the client allowing accountants and management to take informed decisions.
Low Costs
With cloud accounting, there is no need to spend much on IT infrastructure or hire expert IT staff to manage servers. Neither IT staff has to install or update accounting software on your machines. Just by a single subscription, all your work is being done at a fraction of the cost. It frees up the IT team to do other tasks. Apart from that, it reduces unnecessary expenses on server maintenance, energy consumption, expert staff and other associated costs.
Boost Productivity
Since accounting data is ever increasing, it leads to desktop accounting systems becoming slow and unresponsive over a period of time. On the other hand, in the case of cloud computing, all the data is saved in cloud and due to sheer availability of resources, the system is always responsive and it provides a boost in the overall productivity of the accounting staff. As per a research carried out by Harvard Business Review Analytic Services, it has been reported that “74% of businesses feel like cloud computing has given them a competitive edge”.
No Storage Limit
Over the passage of time, with the steady growth of business, demand for storage space increases. Due to this, accounting firms have to keep on updating the hardware. Cloud computing allows the firms to expand or scale down their storage space with a click of a button at much low cost.
Scalability
Cloud accounting allows clients to easily scale up or down depending on the requirements. They can add or remove users or upgrade their computing power on a click of a button. Their pay as you use model is a win-win situation for the clients.
Increased Efficiency – Collaboration
Cloud accounting allows multiple users to work together. Domain experts can handle tasks related to their domain and this leads to increase in overall efficiency.
Automatic Updates
With cloud accounting, enhancements to the system are implemented in the back without disrupting the work of the users. This allows the users to always work on updated system. This is very critical as new taxes can be added or tax values can be changed with minimal effort at the client’s end.
Ease of Use
Cloud accounting systems are redefined the way people used accounting software. It is being said that they allow users to update their accounts as easily as they can update their Facebook status due to simplification of these accounting systems.
Reduces Paperwork
Since everything is available online, there is no need to keep hard copies of the documents and other data. This can lead to fulfilment of a desire to have a paperless office as invoices can be sent through emails which further saves the cost of printing and postage. Incoming invoices, bills or receipts can be uploaded directly or scanned and saved within the software without any need for physical document which further saves the cost of maintaining files and storage costs.
Better Control
In cloud accounting, all the data is stored centrally and access controls can be put in place to classify the data. This leads to a better overall control over the sharing of the data.
Automatic Backups
Cloud accounting systems automatically generate and store backups in different geo-locations which helps in availability of systems even in the times of a disaster such as an earthquake or a cyber-attack. You can easily restore the system using these backups with a minimal downtime.
Platform/Device Independent
Cloud accounting systems can run on any machine which is connected to internet irrespective of its platform or size. Users can access these systems from any device which has a web-browser and may be running on Windows, Mac, Android, IOS or Linux. These systems are responsive or mobile friendly and adapt to the screen-size of the device which is being used.
High Security
All cloud accounting systems are highly secure as they use military grade encryption. Since the data is spanned over multiple data-centers and geo-locations, it diminishes the possibility of data loss due to any computer or system failure.
Build Stronger Client Relationships
Cloud accounting allows easy flow of data between accountants and their clients. Multiple users can collaborate and work together anytime which helps in building a better bond.
Sapphire Info Solutions is one of the early adopters of cloud computing. Apart from using all cloud-based accounting systems such as SAGE, IRIS, QuickBooks etc., they have hosted their in-house job-portal on the cloud which has brought about a great boost in the overall productivity and customer satisfaction.
