Cloud Accounting – The Face Of New Accounting
- June 6, 2020
- Posted by: Dhivya Krishna
- Category: accounting
Cloud computing hit the mainstream in recent years with its rich features and flexibility. COVID-19 which retarded the growth of many startups and organizations propelled the growth of cloud technology, due to its remote accessibility nature. As a clever accountant looking to boost productivity and serve your clients in a better way, you’re presumably well aware of the many benefits of cloud computing. Small business accounting software that’s not accessible via the cloud can be tiring. Speaking wisely, accounting without cloud computing can suck up your time and resources.
Cloud accounting software can remodel the productivity of your bookkeeping, streamline your financial authority, and provide a real-time view of your key numbers. Cloud Accounting combined with AI eliminates the need for manual accounting. The only difference in cloud accounting from traditional accounting is that accounting software is hosted on remote servers, similar to the SaaS business model. The software can blend with a whole new ecosystem of add-ons making it cost-effective, scalable, and easy to use. Indeed, business analysts don’t have to waste their money buying high-end processors or software, they can buy processing power or software for a subscription period. Subscription-based models are the biggest advantage of clouds, making it reliable and cost-effective.
Benefits of Cloud Accounting
Automation of manual process
The manual workflow between the service provider and clients can be easily automated by using cloud accounting. You can simply design a block process structure or a script to enable automatic payment within the due date. Sending invoices to recurring customers can also be automated with cloud accounting. Bringing automation to every accounting function, the system lets you accomplish more work in a limited period, with a smaller workforce.
Access from any device
With the cloud-based software, you can get access to financial information from anywhere, irrespective of processing or storage making it reliable for every customer. The regular updation of software is not a worry in the cloud-based system as the software is hosted in the cloud and maintenance being the work of the cloud providers. As smartphones become smarter and smarter, every computation and analysis can be done with a mobile app through the internet-based cloud structure. Specifically, with the Covid-19 pandemic, the business has appreciated the relevance of allowing their teams to select a work location of their own.
Collaboration being the new savvy trend of cloud (Google docs, Google sheets ..etc) also found its way through accounting. The cloud makes it easier to generate reports of business enterprises or small scale business. If the accountant needs access to your account, you can always provide partial or complete access based on your needs. Being able to access financial data instantly, will empower businesses to make knowledgeable judgment sooner rather than later.
Access to tech support
A primary gain of using cloud-based accounting software is access to tech support. Tech specialists can be reached with a simple telephone call or chat. This reduces the need to employ an in-house IT representative to deal with the software. Giants in cloud accounting, reserve a special department of tech support as a customer means so much to them.
One of the biggest hurdles while handling finances is managing your paperwork. Filling through receipts, expenses, and invoices can be quiet rigorous. Due to the advent of cloud accounting, all your data from the paperwork can be exported directly to cloud storage, making it accessible from anywhere. There’s no need to go through a bunch of papers, instead, you can get a real-time view of your finances making it less time-consuming. As automation and paperless features find their way through, human errors also become negligible.
Categorization and regular update of accounting information in the cloud reduce the risks of accounting errors. Integrating AI with the cloud makes the error checking process even easier. There’s no need for manual error checking by humans, instead, every process can be automated. Defined categorization and block diagrams in the cloud make peer- learning much simpler during collaboration, and also you can pull up any piece of information from the stack of data. Cloud accounting resembles excel sheet automation as the need for different accounting practices, formulas, or shortcuts vanish in the cloud accounting paradigm. Regular updation is they only need to get accurate reports.
Efficient prediction and analysis
Instant collaboration and communication between systems makes big data analysis and forecasting much simpler and accurate. Large data being the key to accurate forecasting, the cloud can be our saviour. Collaboration makes data gathering effortless while also providing a centralized feature. Stock market prediction and analysis have never been easier before.
You may never know when your company experiences rapid growth. When you are using traditional accounting this may become disastrous. You may never be able to scale resources based on the demands of growth. So, what to do? Cloud accounting comes to the rescue. With the scalable architecture being the biggest benefit of clouds, you can rent out enough resources based on your needs from the cloud providers.
Easy integration with third-party apps and Open APIs
Let’s say for example your cloud provider doesn’t provide you with specific application or function. You don’t have to jump to another cloud provider. Instead, you can get access to third party apps and Open APIs in the same cloud environment. Nowadays, the heavy integration of third-party apps makes in the cloud environment eases the workload.
What about Security?
You might be wondering about the safety of data in the cloud environment. During a natural calamity or man-made disaster, clouds are capable of securing the data in need with duplication. Clouds tend to store multiple copies of the same data over different servers around the world, so natural calamities are not a hurdle to cloud technology. When it comes to security, cloud-based accounting software provides encryption along with rigorous hashing of data. This is similar to the security provided for online banking.
Cloud accounting means a lot to business personnel nowadays. With its efficient approach in handling every corner case business personnel faced, technology tends to showcase its brilliancy in the twenty-first century.
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