The cloud is growing tremendously. By 2020, 83% of business workloads will be entirely cloud-based.
There’s a good reason for the mass of intrigue the cloud revolution has sparked. Cloud-based platforms have numerous advantages, from ample file storage, data management and transfer, and secure accounting.
Cloud-based accounting offers a suite of benefits traditional accounting does not. Find out how your company can reap its rewards.
What Is Cloud-Based Accounting?
The cloud allows enterprises and individuals to store, access, and update information online. Unlike traditional systems, in which data is located on a computer’s hard drive, the cloud supports data storage all online.
Cloud-based accounting allows businesses to manage their company’s finances from anywhere, working with and maintaining contact with their accountants through the internet. The cloud allows for access to files from any device.
Isn’t the Cloud Dangerous?
Professionals may worry that the cloud is vulnerable and that it encourages security breaches. Recent high-profile hacks and leaks have caused this concern to grow.
The truth is that your security is only as good as the company hosting the cloud service. If you work with a reputable company that puts security first, your data will be better safeguarded than it would be even on the hard drive of a device.
It’s harder for bad actors to access sensitive information from the cloud than from a business computer. Further, cloud-based platforms are constantly guarded, and good companies have security protocols to protect your business’s data from threats. One such defense protocol is to scatter Distributed Denial of Service (DDoS) attacks, common cybercrimes that flood servers with traffic and allow hackers to gain control of networks.
The best companies also ensure they are compliant with any regulations related to your industry and offer flexible security plans. These plans allow entrepreneurs to increase or decrease security when they feel it is necessary.
The Advantages of Cloud-Based Accounting
Industries turning to cloud-based accounting enjoy several benefits that encourage growth. Many of the advantages give companies the competitive edge they need for success.
Access to the Big Picture
Professionals using cloud accounting have a snapshot of the company’s status at their disposal. This information is available at all times and locations.
As any company owner knows, access to umbrella company data is invaluable. Rather than meeting with an accountant to comprehend the company’s potential and limits, individuals can access the information themselves.
The Power of Add-Ons
In addition to understanding the company’s current health, owners can also interact with that information through data analytics. And it doesn’t stop at accounting.
“By integrating multiple facets of a business onto one platform, company heads can easily navigate and interact with important data,” states Robert McCuller, president and CEO of CINC Systems, a company that offers all-in-one association management software. “With that information at their disposal, it’s a quick route toward innovation.”
Available add-ons range from widgets dealing with sales to customer management tools. Rather than being forced to access this material through several platforms, it’s at your fingertips, ready to be analyzed.
Let’s not forget that other important factor: security. We’ve discussed how the cloud can be incredibly secure, but we haven’t covered some of its other perks when it comes to cloud accounting.
Most companies allow you to choose from multiple security levels, meaning you can have the highest quality protection available for your accounting information. Further, almost all companies offer disaster recovery. If you lose your information for any reason, the cloud computing company will have backup copies of your records to restore them.
Finally, you won’t have to worry about the risks posed by storing sensitive data at your office. If a natural disaster or other incident occurs, your accounting information is safe.
Many accountants charge by the hour, and the rates are high. A small business accountant will cost anywhere from $90 to $300 an hour, sometimes more. When you have to meet your accountant multiple times to discuss a single matter, the expenses add up.
Accounting with cloud software also offers the aid of artificial intelligence, which automates numerous tasks accountants would otherwise spend hours doing manually. If you have an in-house team, it means they spend less time completing tasks and are able to be more efficient.
Finally, costs associated with implementing and maintaining an in-house accounting program are eliminated or lessened. You no longer have to worry about expenses from installation, upkeep, and system administration.
Real-time updates allow business owners to make informed decisions. Cloud-based accounting also lets team members with permission search and share data quickly. Tasks are finished efficiently and accurately, saving time and money.
Last but certainly not least, by transferring your accounting data to the internet, you reduce your reliance on paper products. Studies show it also saves energy. If companies moved most of their documents to the cloud, they could reduce energy consumption by as much as 87%.
Leap Ahead of the Competition
They say time is money, and cloud-based accounting does more than save you time. The numerous benefits it offers gives businesses the information, time, and savings to get ahead of the competition.