Digital tools and software have become an inseparable part of any accountant’s profession. There are software for almost every need of accountants. From managing payrolls to filing taxes, technology is able to automate them and offer a great simplicity to the accountants. Now to maintain the best of productivity and remain competent in the market, it is important for the accountants to find a solution that avails the optimum utilization of the available accounting tools. This is where cloud solutions come in handy for the accountants.
Cloud accounting or online accounting allows you to run the applications and store the accounting data on a remote server for better accessibility, agility, features and more. Here are some detailed benefits that accounting professionals can gain by switching to cloud-bases software:
The software market has a number of options to offer that need to be integrated together to deliver a reliable accounting automation. For example, a fine amalgamation of ship tracking, inventory management, CRM, ERP, and accounting software is required automate the all-end accounting of a manufacturing business. Considering that you are using the desktop version of these software, there are inevitable challenges you would be facing. Limitations of the local server resources (memory, storage, processing speed, etc.) to first of those challenges. Then on, specification necessities with Operating System and cross-compatibility factors are further hassles one needs to deal.
Going with the cloud-based accounting software allows an ease of scalability for resources as required. So, you can choose resources and upscale or downscale them as you add or remove any accounting tool. Moreover, the integration between different tools is easier as the specification requirements of the local machine don’t hold significance anymore. Self-governed version upgrades add more convenience to the integration capabilities of the cloud.
Offline software may be able to process the information and commands, once provided. However, information update is mostly a manual task with offline software, which limits the ability to pace up the processing and chances of error with the information are higher. Also, with the growth in online transaction and payment mediums, the necessity for the instant, remote, and automated update has also grown. Think about it – a sales order is received and updated on CRM, now your accounting software, banking applications, and inventory management software will have dependent actions to take. So, you will have to update them all separately.
Integrate on the same platform, and all the actions (update the sale on CRM, the books on accounting software, status on inventory tool and payment verification in banking app) can be processed automatically. This automation takes off the chances of delay and errors significantly.
Better Workforce Distribution
Managing the entire accounting operations for a business or a number of clients is a herculean job and therefore, various tasks are distributed for timely and smoother actions. To and fro of the email exchange, multiple copies of the same files, limited control and tracking of the changes made by different users – these are some of the hassles that traditional accounting setups face.
Cloud-based applications have a great advantage in managing a large number of users working together. Firstly, admin holds the right to create and restrict the access of different users. Then, it also allows different users to work on the same file at the same time, even from different locations. So, the chances of file redundancy, storage limitation, and sharing hassles are nullified. At the same time, user tracking remains enabled to track which user made what changes and you can even recover changes if required. So, the task assigned to the workforce is immensely simplified and to enhance the productivity.
More Secure and Reliable
As mentioned in the above section, cloud-based tools are centralized under the surveillance and control of the admin. It allows a reliable control on all users and the automated integration of different tools reduces the chances of errors and delays. But that is not all that cloud has to offer for the accounting solutions. Cloud technology rides on the automated backup and data protection advantages.
Most of the cloud-based tools enable multiple backups of the latest data to keep it available in case of any data loss – be it a manual mistake or a natural disaster. Further secured with the encryption, firewall, and other security features, it offers an impeccable environment for running accounting applications and storage of the data.
There’s More Saving
The first and biggest saving that cloud introduces is that it does not require any dedicated local machines and servers to run applications. Since hardware makes one of the biggest expenses, cloud saves the significant amount. But the savings do not end with it. Cloud computing solutions save plenty on the maintenance, upgrading and other IT expenses. As most of the hardware remain with the hosting provider, its maintenance is their task. Serving a larger group of the hardware for a number of clients, the overall charges are much lower at the hosting provider’s end.
Other factors that contribute to the cost-cutting with cloud are because of reduced local infrastructure and on-the-go accessibility, which enables the modern work cultures, such as – BYOD and Work from Home. With so many of the ways available to save money, no accounting professional would like to miss on them.
Technology gifts simplicity of use even with the most complex operation. Cloud has been doing that to a number of industries. Accounting is one of the industries that adopted it quite late, but its potential is immense. Citing which the shift to cloud solutions is noticeable and still growing. If you are still not sure if the cloud is a fine choice, you are probably going to miss out on a lot of opportunities.
By Kirti Khanna