The “cloud” is like a magical place where data is stored. However, ever since its inception, many businesses have gravitated toward it. Cloud computing has brought a revolutionary surge of recent technological advances that had looked like an overseas dream to several. The shift to cloud computing, a rather crucial step, is rapidly bringing about change within the business world. It has galore of features to boast about, including reduced IT costs, and data access on the go.
When it comes to “Accounting”, probably cloud is the most enjoyable thing that had happened to the accounting industry in recent years. This has enabled the bookkeepers and business owners to figure on the critical data access irrespective of their location. Let’s understand how cloud has evolved the way of accounting for small businesses:
50% of IT professionals believe that artificial intelligence and machine learning are playing a role in cloud computing adoption, growing to 67% by 2020. (Forbes)
Most cloud-based accounting solutions allow you to create automatic workflows that save you time. For instance, you’ll enter your vendor’s information into the system and found a workflow that automatically pays that vendor on the date every month.
You can also automatically send recurring invoices to your customers once their information is entered into the system. That’s how automation works for you.
Forbes revealed there is a 50% reduction in labor costs due to cloud accounting.
Cloud-based accounting software connects to your business bank accounts and may facilitate you to track inventory, sales, and expenses. As long as you keep everything up-to-date on an everyday basis, you would find that you’re always seeing real-time data.
Cloud-based software is accessed via the web so you don’t need to run to your office for each work. By using cloud-based accounting software, you’ll check your company’s financial information from the office, your home, or maybe via your mobile device.
93% of businesses reported having better data reporting security after switching to the cloud. (Software Advisory Services)
You’re probably concerned a few cloud service providers storing your data but the cloud is really one among the foremost secure ways to store information. With a conventional method of accounting, if someone hacks your computer, they’d have access to any or all of your accounting details. With cloud accounting though, nobody can access your data unless they log in to your cloud account.
Cloud-based accounting solutions also protect your data from natural disasters and you’ll be able to even invite other users to look at the info with limited access. Cloud-based accounting companies make sure that the protection and privacy of your data are airtight and they’re constantly making updates to ensure this.
It’s difficult to search out a conventional method of accounting that delivers everything your business needs. Cloud-based accounting solutions allow you to integrate add-ons to be an element of your entire ecosystem so that you can customize your accounting solution. With the customization features, you can run your operations as per your business needs.
It’s essential to take care of a decent relationship with vendors, distributors, and other co-workers. With cloud accounting, you’ll be able to easily locate invoices and bills or identify whether a payment was missed. Cloud-based accounting solutions also allow business owners to regularly collaborate with their accountant to confirm that financial details are up-to-date which makes filing taxes much easier and smoother.
A huge advantage of cloud-based accounting systems is how organized they keep your finances. This not only makes it easier to search out data but also allows every department in your business to simply and efficiently update expenses and find invoices.
A survey by Sage discloses that 53% of the accountants chose cloud-based solutions for smooth project management and client interaction.
Using the old, desktop approach, you had limited access to your accounts – which made collaboration with colleagues and advisers difficult. If your accountant needed specific numbers, they might be emailed back and forth, or saved to the USB memory stick and couriered on to their office. Whereas working with colleagues, and sharing data together with your advisers, is a particularly straightforward process when you’re based within the cloud.
Cloud has changed the way many organizations operate their businesses. Have you started finding the advantages of a cloud accounting approach for your financial management?
If you’re currently employing a desktop-based accounting, and wish to determine first-hand how cloud accounting can benefit your business, you can contact us for a free demo from our cloud experts.
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