Why Your Business Needs Cloud-based Accounting?

As a business owner, what is the one thing you would credit with kick-starting your business?

In our journey, we have realized that most business founders bring with them the passion to excel – be it accounting and financial planning for their clients, creating and marketing a product, or providing services. Performing all of the back-end work such as bookkeeping, managing account payables, and other administrative business accounting tasks is not what they signed up for!

These tasks, though essential, consume large amounts of time that could be better spent elsewhere – more specifically, on business-development activities.

Fortunately, small businesses and startups today have a wide range of options for taking care of these essential tasks. The efficient application of technology can help streamline business operations while ensuring that quality and deliverables are not affected. Furthermore, technology advancements are becoming more accessible very rapidly. Shifting critical business tasks such as accounting and financial planning to the cloud can help speed up deliverables without adversely impacting business budgets. According to an article in Forbes, 77% of enterprises have at least one application for their enterprise computing infrastructure in the cloud.

Also referred to as software as a service, or SaaS, cloud based technology enables users to subscribe to relevant technology without the need to invest in it heavily as an asset. This translates into lower expenses for the business, while still fulfilling the need to access technology for quicker, more accurate, and more reliable client deliverables. These benefits have ensured a steady rise for the SaaS market. According to Gartner, the worldwide public cloud service revenue forecast for SaaS was forecasted to be $116 billion USD for 2020, and it is expected to grow to $151 billion by 2022. The actual numbers may be still higher due to the urgency brought on by the COVID-19 pandemic.

Additional benefits of shifting business operations to the cloud include:

1. Improved efficiency in operations

Cloud-enabled operations allow business operators to access data and information over the internet without worrying about being physically present in the office. Work is completed without depending on a physical location or a particular device used to store the information.

2. Increased reliability of information and communication

The ability to access data in the cloud translates into improved communication since documents such as contracts, invoices, and rate cards, are accessible and can be useful during critical business decision-making. Information like this not only creates trust for businesses, but also helps build and foster trust with clients.

3. Improved functionalities

With every change comes challenges. However, cloud-based operations are often more reliable than traditional capabilities. If a business moves their accounting and finance functions to the cloud, they will realize that the ease and accessibility of data on the cloud is far more utilitarian than traditional methods.

4. Boost to existing resources

Cloud computing enables businesses to utilize a host of applications that can integrate with existing systems for faster, more streamlined operations. This includes the ability to boost productivity on completing traditional paperwork, invoices, accounting and bookkeeping records, and other critical business-related information.

Business owners frequently multi-task. They ensure business development, manage the daily operations, and also ensure that the essential back-end activities fueling the business are diligently carried out. But it is vital for them not to lose focus. The need to keep sight of the reason that they started the business in the first place.

However, simply moving to cloud services without any planning may not be the wisest move.  It is vital to understand business requirements, analyze possible solutions, and prepare for migrating processes to the cloud accordingly. Gartner reports warn that companies that are unaware of the mistakes made in their cloud adoption tend to overspend by 20%-50%. Therefore, business owners should consider choosing an outsourcing partner who help resolve this dichotomy by providing much-needed and reliable guidance where needed.

At Analytix, we try to understand what a business uniquely needs to ensure optimal resource utilization. This means that we analyze your requirements and then customize a solution accordingly. Interested in learning more on how this is done? Contact us for a risk-free analysis of your systems and processes.

Written by

Analytix Editorial Team