Cloud Accounting: The Paradigm Shift for Financial & Accounting Industry

Cloud Accounting: The Paradigm Shift for Financial and Accounting Industry

The account departments of any businesses see various spikes across the year, be it the tax paying time or the end of a fiscal year. However, as a drastic impact of the pandemic and the amount of work it has brought, accountants worldwide are now experiencing colossal complexity and stress to finish the job on time.

While the accounting department has traditionally not adopted the new technology than other business processes, the new tools are now seen as the ultimate boon to break down the sheer workload. Not only this, there are analysis reports to compare that adopting new technology would make accounting less stressful during the pandemic.

One of the best innovations to leverage is cloud accounting.

In the simplest terms, cloud technology means storing and accessing data and programs over the Internet instead of your local computer system.

What is Cloud Accounting?

Cloud accounting is an online software or web-based accounting software that is hosted on a remote server. Users can access the data stores in the cloud accounting software via the Internet or other networks. With cloud-based accounting software, a company does not have to set up individual systems; everyone can access the cloud on their own devices. This also allows remote teams or branches to access the same data and the software’s exact version.

The cloud technology has disrupted the businesses over the years, allowing them to operate more efficiently, cut costs, and amplify results. Let’s see how cloud accounting provides benefits in terms of improving the accounting process.

What are the benefits of cloud accounting?

The cloud accounting software provides a complete solution with multiple accounting and bookkeeping functions. For instance, Xero is one of the reputed cloud-based accounting software which provides a comprehensive, secure and reliable solution to accountants and businesses.

Although benefits will vary between solutions, on a general level, some of the benefits of cloud accounting applications include the following:

Modern Solutions to novel manual problems

The automation capabilities enable accountants/bookkeepers and their clients to save time and increase overall business efficiency, allowing them to focus more on core business activities. Cloud accounting makes traditional accounting and bookkeeping process automatic.

Cloud Data Can be accessed from anywhere, from any device.

Cloud technology facilitates data transfer and sharing device friendly. This makes it very easy for the remote teams to access the data from anywhere, from any device. Accountants now build stronger relationships between an accountant/bookkeeper and their clients.

Real-Time Data accessibility that facilitates a paperless environment

Accessing financial data and information in real-time will empower businesses to make informed growth decisions with the supported data analysis and predictions. Accessibility of cloud technology also facilitates a paperless environment in the workplace. The cloud technology also eliminates the need for physical storage of data and paper documents, which is beneficial from extra expenses and the environment.

Cost-effective solution that integrates with other systems too

Cloud-based accounting software such as XERO does not require additional costs. With their user-friendliness integration ability, it makes a cost-effective solution for small businesses as well.

Is the cloud secure?

Since cloud accounting is online server-based software, security is a top concern for all businesses- That is why each cloud accounting solution comes with its security policy focusing more on how it protects sensitive financial data. With the use of state-of-the-art measures such as multi-factor authentication and encryption, the cloud accounting software ensures sensitive financial data security at the utmost priority.

What will be the disadvantage if businesses do not adopt cloud-based technologies?

The cloud is the future. The disadvantages associated with maintaining old processes isn’t a question of capability. Instead, it’s a question of whether or not you want to grow your business and stand out in the competition.

If you’re looking to streamline some financial aspects of your business, and better secure your financial data, consider the benefits of cloud accounting.

Change is difficult. Don’t be intimidated about cloud accounting – our team will be happy to answer any of your questions and help make the transition as easy as possible!

Want to grow your business? Then step out of the traditional accounting process and adopt cloud accounting. Please get the help you need from our trusted professionals.

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