In today’s financially savvy world, where more companies are looking to save time and money on their accounting processes, cloud accounting is quickly making its debut as the quickest way to improve their record keeping as just one of its many advantages.
However, just what is cloud-based accounting? And how does it differ from traditional accounting software? Here take a look.
What is Cloud Accounting?
Cloud accounting is similar to traditional accounting programs. However, users access it over the internet or another network with the support of a cloud application service provider.
Benefits of Cloud Accounting Software
Now that you know what is cloud accounting is, Here now look at a few of its benefits over traditional accounting software that make it so attractive to businesses of all types.
Frees up Hard Drive Space
The main benefit of cloud accounting is you don’t have to install or download it to your computers’ hard drives. Instead, it is installed on remote servers where anyone with a network connection can retrieve data from the application off-site, which helps free up memory on your company’s hard drives.
Real-Time Financial Data
The data in cloud software is also regularly updated, so all information viewed is in real-time. Hence, you can make wiser decisions based on actual balances and more. You can also see your transactions in multiple currencies and more.
And since each financial activity is automatically recorded, it also means less room for human computing errors.
Employees Can Access Data From Anywhere for Better Collaboration
Cloud accounting’s advantage of enabling you to streamline and automate your financial operations all in one place means employees across your organization can access the same software and data. Hence, your CFO and sales team can better collaborate when analyzing your ledger for billing and more.
No New Software License, Database, and Maintenance Fees
With traditional accounting software, as your company requires more accounting solutions, it usually costs more. However, cloud solutions eliminate the need to upgrade your servers, hardware, software, licenses, and more when you expand because the cloud provider provides everything.
It also helps you save on system management and database fees because no IT team is needed to maintain the system.
So it also offers a low-maintenance way to keep your financial records over other accounting software programs for peace of mind.
Choose Subscription Based on Your Use
Many cloud-based accounting providers offer subscriptions based on your company’s usage. Whether you are a small or large business, there is a budget-friendly option for you.
However, no matter which cloud accounting option you choose, remember it also includes software upgrades, no license renewal or database fees, and more. Therefore, it is worth the initial investment.
Increased Security
Cloud accounting may also offer more security than traditional accounting software.
This is because sensitive data is stored in the cloud, which is encrypted and requires a unique password per user to access it, so it is more difficult to breach. However, when private company, employee, or customer information is saved on a computer, if it gets lost or stolen, any data contained in it is more vulnerable to prying eyes.
It is also more susceptible to damage if there is a fire or natural disaster.
Cloud providers also have backup servers in various locations, so you always have access to your data, even if one of their servers is experiencing issues.
How to Incorporate Cloud Accounting Into Your Platform
The best way to incorporate cloud accounting into your company is to start with a platform you already know and trust. As a result, the transition to cloud accounting will be simple and easy to access.
In the end, if you want to switch to cloud accounting, you do not have to do it alone. Experienced accounting professionals are available to help you integrate all your financial activity into your general ledger. This way, you can benefit from one transactional account that makes it easier for you and your financial managers to discover long-term opportunities that help you make the best decisions for your company’s future.
