Accounting involves dealing with a humongous amount of numbers and data and the emergence of cloud computing has come as a godsend. Cloud-based accounting reduces the time and effort needed to perform basic accounting tasks, offers increased accuracy and automates functions for enhancing operational efficiency. Cloud resources have completely transformed the way financial data is managed in enterprises without compromising integrity and security.
Strengthens Data Security
The most important aspect of accounting is ensuring that the confidentiality of customer data is maintained and there is no compromise while handling important data while filing taxes or finalising accounts. Cyber security is of utmost importance in accounting and cloud resources provide superior data security and privacy. Storing financial data in the cloud provides safety in the event of natural calamities. The use of firewalls, login management systems, multi-factor authentication and data encryption can provide significant safety for client data. Migration to the cloud drastically reduces the chances of data loss or computer failure. This is the reason why collaboration becomes feasible.
Access data without limitations of time and distance
This is a great advantage for accountants as they are normally tied down to their desks, especially during quarterly and annual closing. Work-life balance usually takes a hit as stringent deadlines need to be met. Cloud computing allows much-needed flexibility to reduce the logistical limitations on accountants. Today, they can work anytime anywhere having full access to data and software without any compromise on data integrity and security. They can access information on any device provided they have a secure internet connection. This provides 24/7 accessibility to complete information from a single source of truth which makes accounting very convenient. It saves accountants a lot of time and deadlines can be met comfortably as physical presence is not mandatory. Accountants can now complete their work on the go and no time-bound activity comes to a standstill because of the unavailability of a resource. When it comes to collaboration having convenient access to real-time data anytime anywhere is a great plus.
Cloud computing enables the automation of most accounting activities using journal templates, invoicing and accrual journals which reduces human errors. Moreover, it pulls every transaction from a single source of truth which ensures that nothing is missed. It also checks for errors and duplications which ensures that the data is 100% accurate. This level of accuracy is next to impossible when manual accounting is involved. It frees up time for accountants to engage in other productive activities that can improve the efficiency of the finance function. There is no back-and-forth checking required which cuts down a lot of time.
Enormous savings in time and cost
The use of cloud resources reduces maintenance costs, server failures and other costs that are associated with standard IT infrastructure. When clients move to the cloud the service provider handles the associated costs of maintaining the system. Since cloud computing adheres to a pay-as-you-use model, there is no blockage of funds.
Now we come to the most important point. Cloud resources improve collaboration with team members and other stakeholders. This is the most important benefit of cloud computing that helps enterprises reap the full potential of this technology. When accountants work with standalone desktops, it becomes tricky to have team members on the same page. With cloud computing, all stakeholders can access the books of account online if they have authorised access. This helps work to get done faster without any duplication. Reconciliations can be done quickly and accurately. It becomes easier for accountants to handle more services for their clients as the process is safe and seamless.
Since the routine tasks are automated it gives accountants the flexibility to concentrate on other tasks. Data is automatically saved and backed up which saves time and effort on one hand and ensures easy retrieval without accidental loss on the other. This can be a lifesaver when accountants are racing against time to finalise accounts and get the tax filing complete.
Collaborative accounting helps accounting firms and clients to work together without the limitations of time and place to complete tasks efficiently and quickly without any compromise on accuracy or security. Moving to the cloud has helped firms move forward and deliver exceptional client service. The cloud enables collaboration which allows client queries to be addressed immediately. Data and information can be exchanged on the go.
Migration to the cloud reduces the dependence on paper documentation and manual data entry which slows down processes and makes them inefficient. Cloud computing can reduce this dependence as accountants can email invoices reducing printing and distribution costs and expediting payments and collections. Bills and receipts can be scanned and stored as soft copies. Similarly, financial statements can be stored in the cloud reducing filing and storage expenses. Shifting to the cloud reduces the need for hardware on the enterprise premises which leads to less power consumption and a lower carbon footprint. In a world that is consciously moving towards sustainable solutions, this is a great advantage.
Build better customer relationships
The shift to the cloud creates a conducive environment for building and maintaining good relations with customers. Cloud computing eliminates issues of missing bills and delayed payments. All records are accurate and show a true and fair picture in real-time. File sharing becomes very easy which makes it convenient to resolve disputes saving time and improving goodwill.
Scaling up on Need Basis
The biggest plus in cloud computing is the fact that it allows scaling up on a need basis so there is no need to block capital in advance. This is ideal for a growing business where the requirements for resources would be fluctuating. It also gives enterprises the flexibility to add software options to upgrade or customize the accounting solution according to growing needs.
To put it simply, cloud computing has given new wings to accounting professionals as they can move away from routine tasks and focus on real finance issues that could help in generating better business outcomes. It has helped to automate most of the tasks without any compromise on data integrity and security. Moreover, access to real-time information is possible anytime anywhere which gives them more flexibility to manage their work and time efficiently. The migration to the cloud facilitates collaborations as team members, clients and other stakeholders can be on the same page and resolve issues faster. Cloud accounting is something that enterprises need to adopt soon to maintain their competitive edge. The value of access to accurate real-time financial information is priceless. It is critical that the accounting field makes use of the cloud to smoothly navigate a dynamic business landscape.