Today, businesses are on the onset of adopting new trends in technology for their operations. With the increase of stiff competition, having an edge in how a business handles its financial systems is quite important. Embracing trends such as cloud computing ensure that the organization is not left out on the several benefits this technology has and thus worth investing into.
Cloud accounting is hosted remotely and therefore quite efficient to the operations of business since it has a vendor who maintains it. The business will only have to get it installed and use it and leave the rest of the work to the vendor company. Cloud accounting is more centralized for an organization and has tiers of security access depending on the levels of management or employee roles.
The benefits of cloud computing are undeniable for a business and thus worth taking into consideration. They include the following:
1. Real time data access
Cloud accounting systems being more of an online platform where a business can store its data online means that access to information is convenient. Account records are quite crucial to organizations employees, and thus real time access ensures smooth operations when data is needed. Employees do not have to wait for emails to be sent to them anymore but instead can access the system and get the info they need conveniently at any place. It also allows easy audits to be done on the business, thereby producing real-time reports, as the information is readily available online and thus no reason to keep large files of records.
2. Remote access
Businesses using cloud accounting do not have to tie their employees behind the desk each time to access accounting data. Cloud accounting allows it to story its accounting information online, and thus, one can gain access to it provided he is authorized. It will enable the organization employees to work remotely for the achievement of the organization goals and therefore, more efficient in its operations. Employees are given tiers of access to the information, however, depending on their level in the organization.
3. Multiple users
Cloud accounting allows access by multiple users at the same time, unlike traditional accounting which is restricted to a few users. Once put into use, those needing accounting information from the system will have no issues logging in and accessing the data at the same time with no problems to do with the restriction of numbers. It, therefore, is efficient in the operations of the organization and access is only limited to user levels and not numbers as long as you are registered. Cloud accounting is therefore ideal even when there is a surge in demand of information. It also makes it easy for the employees to share information at the same time for assignments or responsibilities all at the same time.
4. Low initial costs
As a business, you should always think about ideas that will assist you to cut on cost and at the same time, increase productivity. Cloud accounting has little initial set up charge from any vendor and since its more of an online-based system. There is also no need to have a storage facility since data is saved in the cloud and thus making it easier for a business to acquire and use it. Maintenance is also no issue because the vendor is responsible for it plus any upgrades that are needed.
5. Security and backups
Security is always a significant concern for accounting information. It's quite sensitive, and therefore some level of security access is needed. Cloud accounting allows the business not to store their information on a physical facility serve which are quite prone to hacks and breach and instead save online. The accounting information is encrypted with certain levels of access, and thus you will have no issues with security control.
On the other hand, while you store your data, backing up may be an issue due to the various change of versions. However, cloud accounting software allows you to not worry about this. The software is always up to date for the user to use, and thus, you do not have to stress about waiting for the latest version to update. As a user works on a cloud accounting software, data is also stored as they work, and thus you save money and time on backups or loss of data.
6. The ideal idea for a paperless office
Cloud accounting being more of an online platform allows the business not to need to keep printing accounting information. It makes it a paperless procedure, and thus you do not have to keep buying printing papers or even the printer to share data. You can do it online with no issue and thus saves such costs. Information is also shared faster than having to print and mail anyone in need of it and thus reduces time wastages.
Despite the benefits of a cloud accounting system, while looking at its impacts on a business, it's also essential to understand its risks. The risks associated with it allow for mitigation and include:
The vendor goes away
A business relying on a vendor for cloud accounting issues may suffer the nightmare if the vendor goes always. They may have stored all their accounting information on the software and relied on its efficiency. Thus once the vendor calls it to quit, the business may suffer the consequences of total reliance on the piece of technology.
Access to the internet
The only way to gain access to cloud computing serve is by a secure internet connection. This is done at any time and place. A user who may not have access to an internet connection will, therefore, be limited to information on the portal and thus lack to perform what he needs.
Breaches
Even though data is encrypted and some level of security access, breaches are a risk cloud accounting systems face. Them being online means that they can be attacked by cyber-attack criminals and lose sensitive information.
Food for thought
Cloud accounting is slowly becoming revolutionary, and the benefits reaped from it are worth investing in it. As a business that is looking for a perfect way to stay up to date with the latest trends and stay competitive, cloud accounting is an ideal solution for it.
