Keeping your financial accounts in order should be a fundamental priority if you want to be an efficient, compliant and ultimately successful business.
If it's been some time since you've given any thought to how you might be able to improve your accounting processes, you could find there’s considerable scope for improvement in this area of the business.
One route you could consider going down is cloud accounting. The adoption of cloud computing technologies is having an enormous impact on the modern business landscape, and there are numerous ways these innovations can benefit companies.
Here are some of the most compelling advantages of cloud accounting software:
Given the highly sensitive nature of your financial data and accounts - and how much value this information holds for the business - security should be your number one priority.
Back in the early days of the cloud, some finance professionals may have harbored concerns about the wisdom of entrusting crucial data to a third-party service provider. Today, however, businesses can feel confident that the cloud is one of the safest places to store and manage their sensitive account information.
Since cloud service providers are fully dedicated to managing this technology, they have the time and expertise required to maintain the highest levels of security. Furthermore, data isn't stored on a single computer or physical hard drive on your premises, making it less vulnerable to theft or damage.
2. Real-time data
One of the ways service providers keep your data safe in the cloud is by implementing regular updates and security patches. Moreover, the real-time, responsive benefits of cloud accounting software extend well beyond the security space.
For example, the capability to connect your bank account to your accounting system gives you the option to receive real-time information and build the most accurate, up-to-date picture of your finances.
In the wake of a pandemic that’s transformed how businesses operate and forced countless people worldwide to work from home, it’s never been more important for companies to enable its people to access the tools and data they need from anywhere.
Cloud technology has an essential role to play in this. Anyone with an internet connection and the right user permissions can access and utilize your cloud accounting software, giving you the option to maintain a truly agile and international workforce.
Buying traditional accounting software that you have to install, manage, and maintain yourself is likely to require a substantial one-off investment that could dent the company's finances.
If you choose to go down the cloud route, you can opt for a subscription-based model that lets you spread the investment over time. This might be your preferred option if one of your challenges or priorities at the moment is to gain better control over your cash flow.
5. Better collaboration
Collaboration is the fuel that powers many businesses to success and creates happy, engaged, and productive workforces. Cloud accounting software enables healthy collaboration within your team and with outside parties like independent accountants, thanks to its accessibility.
Utilizing user permission features to give access to the right people can make your job much easier because it takes the burden off you to compile reports or distribute the right data and assets to those who need them.
6. Efficiency through automation
The automation evolution is touching all aspects of business and providing opportunities for organizations to realize benefits and unlock new efficiencies in various areas.
In the cloud accounting space, automated processes can save you a lot of time by eliminating the need for staff to work on routine tasks that can be safely entrusted to software. Automated generation and tracking of invoices, for example, can make this process more rigorous and reliable, helping you get paid on time without having to worry about chasing debtors.
Furthermore, automation can greatly improve accuracy and consistency in your accounting practices, while minimizing the risk of human error. In such an important area of business - where you need to have complete confidence in your practices and compliance standards - this could prove crucial.