By Analytix Editorial Team
Cloud accounting offers the flexibility of working from anywhere and staying connected with businesses on a 24/7 basis. In other words, with cloud technology, you can access business functions from a remote location to complete day-to-day tasks. Your entire practice can be set up on a cloud-based infrastructure to optimize productivity.
Accounting business owners can leverage cloud computing to grow their business faster, especially in a competitive market. In the post-pandemic market, many accountants are opting for cloud-based systems to support work efficiency, given that such systems often support automated accounting functions.
Additionally, having a cloud-based infrastructure allows businesses to hire resources from geographically remote locations. Hence, they can access a larger pool of skilled talent. Cloud accounting is a cost-effective solution compared to traditional accounting methods. You do not have to spend tons of money on hardware and infrastructure.
For example, many cloud-based accounting programs gather data from multiple applications (QuickBooks, Paylocity, Xero, Sage Intacct, and Bill.com), bank accounts, point of sale, and payment gateways to automate accounting and bookkeeping activities. When users integrate these applications into a customized portal, it becomes much easier to access, analyze and organize accurate data.
This is a critical time saver and allows you to focus on revenue-generating activities or functions that are more integral to business growth. Cloud accounting allows stakeholders to manage their business effectively. Anyone registered with an internet connection can connect to the relevant cloud accounting software.
Employees do not have to attend an office, manage a hard drive, or follow a paper trail because everything is stored securely online to protect business data. Additionally, you can often customize features of the accounting software to support the business and help it run smoothly.
Benefits of Cloud Accounting
Quality cloud accounting software eliminates errors and offers accurate information. The software automatically draws financial data from different sources and records entries into the correct accounts and books. These functions are established from the backend with custom rules for business compliance. You can set up different rules for individual or grouped accounts and books to meet a myriad of needs.
You don’t have to spend time reviewing work or rechecking recorded transactions with cloud accounting software. Moreover, cloud accounting software is often designed to identify errors and rectify them automatically.
Your financial business data is online and available 24/7. This allows you to make quicker decisions that can impact business productivity. Moreover, you do not have to be physically present on-site at an office to access crucial information and make critical decisions, especially in cases where you need to react quickly to certain unforeseen situations (such as data breaches and blackouts). This is one of the key points for investment in cloud technology, as it offers access to business and financial information at your fingertips.
Also, the system automatically creates business and financial reports daily, delivered directly to your email, so you can quickly analyze the progress of your business. You can also opt for custom reports to understand data more clearly.
Cloud accounting technology uses the latest security protocols to protect business and personal data. Users require credentials and permission to view and edit data to access cloud systems, applications, and information. In addition, consent to access files and data is limited and based on user roles (e.g. upper management/C-level executives vs. supervisors and bottom-level employees and contract workers). You have total control over the information available on cloud platforms.
Cloud accounting platforms enable the workforce to create meetings, share project details, and offer better project management tools. Although the pandemic has made it difficult for many to connect with team members to complete assignments, cloud accounting platforms provide the flexibility to connect and share information with peers and clients. The system automatically creates multiple files for different users to protect the original file. Therefore, the workforce can work remotely on a shared platform without incurring data loss.
To assist with strategy development, cloud accounting software is often equipped with tools that can analyze data and display it in an easy-to-read, single-view dashboard format, like Analytix’s Insight360 platform. Likewise, cloud accounting also provides predictive tools that can help decrease financial risks such as lost profits.
With cloud-based systems, you no longer need to worry about data loss. Information stored on cloud platforms is part of an automated system backup. These backups create additional copies of all the documents and files for safety precautions. Moreover, you can establish custom rules for backups to account for extreme events such as natural disasters and cyberattacks. Cloud system backups ensure that data is always safe in a secured location in the event of a natural disaster such as a hurricane. Also, users can access the backup from anywhere.
You do not have to spend extra money on the latest technology. The latest software updates are automatically installed for your business to maximize productivity. This will allow you to remain up to date and competitive at cost-effective rates.
Would you like to learn more about cloud accounting and how it can positively impact your business functions and operations?