Cloud computing is one of the most hyperbolic technologies of the recent past. The technology provides versatile and multi-purpose alternatives to your local storage. You can now store and access your information on an external platform because of cloud technology.
It has completely revolutionized how modern businesses compete with each other. It has also become such a normal part of a common man’s life that they don’t realize how many ways they are utilizing the services of the cloud. From making an online transaction to sharing a large attachment with your work colleague, everything is being achieved through the cloud.
Cloud accounting, one of the most prominent applications of the cloud, is gaining huge popularity in modern times. It has given a new way of keeping accounts and managing all the financial activities of an organization. It is extremely beneficial for small businesses as it helps them streamline all their accounting tasks at a bare minimum cost.
Cloud-based accounting applications like QuickBooks help you get rid of the old, inefficient accounting practices and opens a new world of business productivity and efficiency for you. To top it all, it provides business continuity amidst difficult times like the novel coronavirus the world is fighting currently.
If you own a small business and are wondering how cloud accounting benefits your business, then this post is for you. Here, we will discuss what is cloud accounting and what are the main reasons why you should adopt cloud accounting. So, let’s keep the ball rolling.
Table of Contents:
- What is cloud accounting?
- Global cloud accounting software market at a glance
- Why should you adopt cloud accounting?
- Minimum Operational Costs
- Enhanced Data Security
- Automate Mundane Tasks
- Lean IT Infrastructure
- Productivity on-the-go
- Real-time Business Insights
- Uninterrupted Services
- Effective Data Backup and Restore Services
- Easier Tax Preparation and Compliance
- Smoother Integration and Collaboration
- The bottom line
What is cloud accounting?
Cloud accounting refers to performing all your accounting tasks online, without depending upon your local machines, servers, or storage devices. It is an on-demand service that is accessible from any part of the world, through the internet. All you need for cloud accounting is a computer (or laptop, tablet, or smartphone) with an internet connection.
It is a new way of accounting where you don’t need to be at your office desk to generate an invoice or produce a financial report for the previous month. It lets you do everything within a few clicks from wherever you are.
- Global cloud accounting software market at a glance
Cloud-based accounting solutions have been around for a while now. The global cloud accounting software market is making significant growth strides in modern times. This rapid growth can be attributed to several factors. Modern organizations aim to enhance, streamline, and improve efficiency across the business units. Therefore, they are reprioritizing resources from hardware to software and now finally to the cloud. AWS DevOps certification training and various courses provide deep understanding and insights about the cloud and their impact.
The COVID-19 pandemic has further accelerated the global pace of cloud adoption and as a result, cloud-based accounting software will witness a systematic shift.
“According to the leading market reports, the worldwide cloud accounting software market will have a significant growth of 8.5% from 2019 to 2025.”
Considering the push the COVID-19 is providing, the growth will be even more significant.
Why should you adopt cloud accounting?
While the concept of cloud accounting and its global market growth seems fascinating, what is so special about it? Why is it beneficial for your small business? Well, let’s discuss that in detail now.
The following are the top reasons why you should adopt cloud accounting for your small business:
- Minimum Operational Costs
Handling accounts using the software was an expensive affair in the past. The tech organizations used to charge large amounts as licensing fees, which too needed to be renewed after the stipulated interval. Moreover, a business had to employ tech experts or had to train its accountants to enable them to use the specialized software. All of this used to increase the overall operational costs of a business.
However, with the advent of cloud accounting, you don’t need to pay for software. You can choose monthly or yearly subscription plans, which are extremely affordable because of the hypercompetitive global market.
All the user data and other application resources are stored in the service provider’s server. Hence, you don’t need to invest in powerful computer systems and other hardware devices. As a result, the operational costs of your business become minimum.
- Enhanced Data Security
Data security is one of the biggest concerns of the current, internet world. What may seem a small data breach to an outsider may well be a business-ending act for your organization.
There are numerous viruses and malware that can corrupt or completely damage sensitive information, raising big questions over the credibility of your business. With cloud accounting, you get enhanced data security that protects your critical data against any virus or malware attack.
Cloud hosting service providers store your data in their own secured servers. That way, you don’t need to worry about losing your important data. The service providers incorporate some of the most sophisticated security measures like internal firewall protection, multi-factor authentication, data encryption, etcetera. This enhances the overall security of your data.
- Automate Mundane Tasks
Taking care of accounts and finances involves a lot of dull, repetitive, and tedious work. However, with the modern, cloud-based accounting software, businesses and CPAs can automate everyday mundane tasks related to accounting.
The technologically sophisticated software applications are able to record recurring transactions like utility payments, rent, and other official service subscriptions. Moreover, these cloud-hosted applications have simple, on-tap services that any of your employees can run.
- Lean IT Infrastructure
Similar to other businesses, storage can be a huge problem for your business. Businesses that utilize powerful computer systems to store their important accounting and finance data have to spend thousands and millions of dollars on servers and other hardware machines. All these things put together occupy a lot of space, need regular maintenance, and require IT experts to ensure minimum downtime.
However, if you adopt cloud accounting, you don’t require heavy machinery to store your data and use the application. It not only saves a lot of your investment that goes into procuring and maintaining high-end servers and computer systems but also keeps your IT infrastructure lean.
- Productivity on-the-go
Being able to access your data and resources without depending upon the physical location of your office is one of the most significant features of cloud accounting. All you need is a device connected to the internet. It ensures that you make all your crucial business decisions on time, by accessing all the reports and information you need within a few clicks or taps on your device.
Moreover, the on-demand access ensures business continuity amidst difficult times like the COVID-19 pandemic. You don’t have to worry about the geographical location of your employees. They are always connected through the internet, making sure your business keeps growing. That too when the whole world is under a strict lockdown.
- Real-time Business Insights
Cloud-based accounting software provides an array of features and functionalities. You have access to great business insights that help you make informed, timely decisions that are critical to your business growth.
Using cloud accounting applications, you can generate real-time data reports that help you understand your business better. Moreover, you have these insights accessible to you even when you are traveling or vacationing.
- Uninterrupted Services
Your cloud hosting service provider offers round-the-clock tech support that ensures your application is up and running. They have a team of dedicated professionals who are capable of handling all technical issues that you face down the road.
Moreover, there are multiple ways you can report any issues that you encounter. You can reach their tech support through a call, a chat, or an email. This superior support feature makes sure you enjoy uninterrupted services throughout the year. It plays a vital role in enhancing the credibility of your business.
- Effective Data Backup and Restore Services
Your information is extremely important to your business. Hence, your data must be properly backed up at multiple locations. However, if you go with local servers to store the copy of your data and information, it will increase the complexity of your IT infrastructure. Moreover, it will increase the financial burden as well.
Additionally, you are not immune to any physical threats like data theft or hardware failure. With cloud accounting, you get automatic data backup and restore facilities. Your service providers offer regular backups and for as long as you wish. So, if you lose your data at one place, you always have everything backed up at some other place. You can easily restore the data and resume your business operations.
- Easier Tax Preparation and Compliance
Filing federal taxes is not easy. You have to pull diverse information from several sources and compile it all in a meaningful way. When you use a cloud accounting tool, you have everything streamlined. You can pull all the financial reports and information within a few clicks.
This not only ensures you have a smooth tax filing experience but also makes sure that you have all your financial documents and data compiled on a unified platform. This comes extremely handy when you have to go through financial audits.
- Smoother Integration and Collaboration
Managing a business is not everyone’s cup of tea. You have to collaborate with various industry experts and professionals to get various jobs done. You also need to integrate numerous applications and tools to ensure business productivity.
Cloud accounting applications facilitate easier integration and collaboration. You can smoothly connect with some of the best accountants across the world and get their expert views on various things. And to do that you don’t require sending emails back and forth. You can share documents with multiple people simultaneously. All of the participants can edit the information in real-time, irrespective of their geographical locations. It is an extremely important feature that makes sure you can smoothly collaborate with the best in the world.
The Bottom Line
Cloud-based accounting applications are redefining the industry, helping businesses and accountants perform all accounting-related activities with utmost ease and comfort. Cloud accounting is not beneficial just for accountants. Businesses across industries gain from state-of-the-art features it offers. From on-demand access to enhanced data security, businesses are utilizing cloud-hosted solutions like QuickBooks for their benefits and higher growth.
All the benefits that cloud accounting offers make a strong case for businesses to do away with their traditional accounting technologies and embrace cost-efficient and highly productive cloud-hosted accounting solutions.
The world is adopting cloud accounting; it’s time you do too.
Article Summary:
What is cloud accounting? How does it benefit your small business? What are all the advantages that make it a must-have for your business? Find out here!
Author Bio
Alice Bell is a passionate content writer, having knowledge in areas including the latest technology, Cloud Computing, Quickbooks Hosting. She dreams of someday living somewhere warm and typesetting a novel. Most of the time she spent on laptop and learn new things.
