How The Accounting Industry Is Being Changed By Cloud Computing

How The Accounting Industry Is Being Changed By Cloud Computing

The market for accounting and tax services are in quandary primarily because customers are gearing towards bookkeeping services which are less costly and that big accountancy firms are pushing other players out of the high-priced market. However, all is not lost. Accountants must see it as a challenge. With the current financial difficulties everyone is facing, accountants can offer more value-for-money services to small and medium-sized enterprises. Instead of the yearly client discussions, accountants must be prepared to offer interactive services in order to meet the requirements of these SMES who are bracing themselves for another difficult year.

Cloud computing is slowly transforming the accounting industry by offering to streamline accounting processes in order to cut costs and adopt services which add value in a subscription-based scheme. Such services can include tax planning, profitability advices, cash flow forecasts, and real-time approach to scanned invoices. With software-as-a-service, accountants will be able to deliver services in more innovative way.

Accountants must be able to view cloud computing as a big opportunity for them to step up and take the lead in empowering a new phase of business insight in order to understand that they can change the SME’s performance. However, this shift is not an easy one because it will also entail a change in culture and attitude. Accountants do not just adopt cloud computing but must also incorporate a new approach in working which will minimize administrative processes which are repetitive and which will eventually free up gifted individuals so that they can share their knowledge and expertise with the market.

An important part of the cloud computing solution is the integration of document scanning. Invoices can be instantly scanned and posted automatically to the accounting system after which the accountant can check and confirm the entry. Through scanning invoices, cost of processing goes down because the invoices can be scanned in bulk or by every client on their end. Through cloud computing, accounting firms can now compete with those offering low cost bookkeeping services.

By encouraging each client to scan invoices daily, an accountant can have timely information which can be used to provide additional value added services. This powerful capability to offer real time intuitiveness is a welcome service to SMEs. Clients can just log into the accounting firm’s portal to find out how their businesses are performing. They can also asses the currency fluctuation’s impact or track cash flow which is helpful in providing confidence in clients’ business decisions. Accountants can offer new services like business analysis or cash flow forecasting in order to offer an in-depth financial expertise which SMEs will find essential in maintaining or growing their businesses.

Cloud computing is a tool every accountant can take advantage as a leveraging tool so that he/she can retain his/her clients without necessarily slashing his/her fees. With the new technology, an accountant can provide timely reports and advices to SMEs so that they can still be in business. He/she can provide real time perspective to the client’s profitability by undertaking cost analysis and delivering advices on business expansion or transformation. These types of services are highly demanded by customers who need to make difficult decisions. The practice of reviewing the business’s performance has become irrelevant and outdated with cloud computing.

Financial software offered in cloud computing technology provides an opportunity to change and enhance accountant-client relationship. Taking advantage of software-as-a-service, an accounting firm need not invest heavily on server infrastructure or internal IT personnel because most of these cloud computing services are on subscriptions. Monthly subscriptions are also very low to encourage accountants to take advantage of the innovative business model. By reducing IT costs and making information available 24/7 online, the accounting firm’s cash flow is greatly improved.

Although accountants are still generating income despite the current financial situation, the changing market and the clients’ pressure push them to think of innovative ways to maintain their clients because there are bookkeepers who offer their services low and there are also huge accounting firms who are also moving to capture the mid market. Accountants must wake up to realize that the current movements in the accountancy arena have serious implications and that there is a need to make the big leap to change to the new cost base and business model.

By Florence de Borja

5 Responses to How The Accounting Industry Is Being Changed By Cloud Computing

  1. Software in general has so much more capability (re: intelligence) than ever before.The affect on accounting and bookkeeping is no different than any other profession hit by automation and smart tools. Cloud just takes it that extra mile by increasing access to even more choices and lowering its cost. The final journey comes from how cloud solutions enable greater adoption of sourcing accounting services not just to your local or regional CPA firm but also to near shore or off shore options.

  2. […] An accounting firm can benefit from cloud computing in different ways. One, the overhead is quite low. System administration, upgrades, and maintenance become the responsibility of the supplier and everything happens in the cloud. Therefore, the firm does not need pay a supervisor to monitor any software/hardware work which usually occurs during weekends or at night. For a small firm of 100 employees, cloud computing software usually costs 50% less than software installed in the firm’s premises in a span of 4 years. […]

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

Monetization of the Internet of Things – Q&A With Brendan O’Brien

Monetization of the Internet of Things – Q&A With Brendan O’Brien

Q&A With Brendan O’Brien, Co-Founder of Aria Systems (Part 1) Monetization of the internet of things (IoT) is one of the most exciting and challenging issues facing the industry today, so we spoke with Brendan O’Brien to learn more. Brendan is the Co-Founder of Aria Systems, who are one of the leading innovators in recurring…

Cloud Infographic: Cloud Computing Growth

Cloud Infographic: Cloud Computing Growth

An excellent infographic provided by AwesomeCloud which predicts a continued high level of growth in the cloud computing industry. Potentially staggering numbers for Public Cloud IT Services of $100 Billion by 2016. Infographic Source: AwesomeCloud About Latest Posts Florence Latest posts by Florence (see all) Negotiating Tips On Software-As-A-Service Contracts – August 9, 2012 How You Can Take…

Cloud Infographic – The Future Of Big Data

Cloud Infographic – The Future Of Big Data

The Future Of Big Data Big Data is BIG business and will continue to be one of the more predominant areas of focus in the coming years from small startups to large scale corporations. We’ve already covered on CloudTweaks how Big Data can be utilized in a number of interesting ways from preventing world hunger to helping teams win…

Cloud Infographic: The Education Of Tomorrow

Cloud Infographic: The Education Of Tomorrow

Cloud Infographic: The Education Of Tomorrow  Online Education is a very exciting topic for many as it opens up many new doors and opportunities. We’ve touched on areas such as Massive Open Online Sources (MOOC) which provides tremendous levels of cloud based interconnectivity. We’ve taken a look into higher education,  the increased demand for online courses as well as…

Cloud Infographic – Cyber Security And The New Frontier

Cloud Infographic – Cyber Security And The New Frontier

Cyber Security: The New Frontier The security environment of the 21st century is constantly evolving, and it’s difficult to predict where the next threats and dangers will come from. But one thing is clear: the ever-expanding frontier of digital space will continue to present firms and governments with security challenges. From politically-motivated Denial-of-Service attacks to…

Featured Sponsors

Moving From Email Into The Cloud

Moving From Email Into The Cloud

Mobile Collaboration In The Cloud Imagine that you, as a manager, are told by the powers that be that you have to find “efficiencies” within your department that will result in one million dollars of savings annually. You struggle with this. You send an email to everyone on your senior team. “Where can we save…

2015 Advertising Opportunities - Find Out More!

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Blue square_logo_100x100-01
cisco_logo_100x100 vmware citrix100

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter