Access to software programs from anywhere in the world thanks to remote servers makes cloud computing the most effective and valuable management tool available to any business. It is also delivering a number of key benefits to various industries. Accounting is just one industry that is seeing great transformation due to cloud computing. Because businesses now exist primarily in a global, digitized ecosystem, access to data- especially financial data – at any time and any place is more important than ever. Used correctly, the cloud is making accounting a much more straightforward and efficient process. Continue reading to find out how the cloud is transforming this very important industry.
Ease of Use
Let’s face it- traditional accounting is complex, cumbersome, and can be incredibly confusing. Why do debits and credits exist? Why does a bank statement show credits for transactions that are debits on your books?? To learn accounting, it required extensive training and education and led to a system where only accountants or individuals with significant experience in accounting practices could perform certain vital accounting functions to keep a business in compliance.
Thankfully, with SaaS accounting platforms like Sage Intacct, these accounting programs are extremely user-friendly and easy to use. Step by step guides and video tutorials make most functions accessible to the average employee allowing employees to be responsible for their own accounts. Help is always available through the collaboration tools embedded in most of these cloud accounting platforms.
Efficiency and Collaboration
Real-time collaboration is one of the greatest benefits of cloud accounting. No matter where you are, you have the ability to work with anyone else who has access to your cloud-based accounting software. You can upload information and edit documents and share annotations in real-time. This makes financial transactions more efficient and seamless.
Scalability is another significant benefit of cloud computing. As your business grows, so do your accounting needs. Your finances grow in complexity. You may need to change revenue recognition methods or deal with expensing prepaid expenses over time, just to name a couple of typical accounting challenges. It is disruptive to have to upgrade or switch your accounting system. With a cloud-based accounting solution, you can add the functionality you need as you grow. Because cloud-based solutions are scalable, you get immediate access to the additional features, including storage, support, and functionality. This scalability allows your business to grow without causing any major disruptions due to upgrading or changing your accounting software.
Using traditional accounting software requires a significant investment in both hardware and software in order to run a busy accounting firm or department. Think about what you need to run an accounting department or business successfully: printers, terminals, local networks, and a few other elements of IT infrastructure, not to mention supplies such as ink, toner, and paper. But with a cloud-based accounting system, all you really need is the Internet. With collaboration tools, it makes it easy to go paperless. You pay for the services you need but nothing more. No repairs to deal with and no infrastructure maintenance costs. You save on overhead, supplies, and capital costs across the board, providing you with additional capital to grow your business.