You have probably heard of cloud technology. Most of us have used IT without knowing it. For instance, if you have ever shared pdf or documents with your team using Google Drive, or used communication software like Skype, you have used a cloud system.
Basically, any system that stores your data on a server, and makes it accessible to you online anywhere on the planet, is a cloud system.
The charm of an online accounting system is that it can be used like any common accounting software except for one thing: the financial data such as ledgers, company accounts, reports and balance sheets, is not stored on a single computer, from where it can be easily stolen, lost or deleted, but it is stored on the cloud (online on a server).
Due to this, the cloud allows your team of accountants can access the data from any device, anywhere, anytime. This means that you can check your analytics from your smartphone during a commute, or use a laptop with a decent connection to share reports with your clients even when you’re on the go.
If you are still not convinced and need some more benefits to move your accounting practice to the cloud, here we have them listed:
1. Significant Cost Reduction
Does your accounting firm struggle to manage local servers and PCs? Are your accountants fed up shuffling emails back and forth and maintaining accurate versions of the files of their clients? Replacing your IT infrastructure with a secure, fully managed, an online alternative is always worth a consideration.
Cloud accounting solution will eliminate the need for an in-house technology infrastructure such as servers and expensive accounting software to buy, run and maintain.
Instead of paying expensive subscription fees, cloud accounting charge users based on flexible a pay-as-you-go model. And, because everything is managed, maintained, and upgraded by your cloud provider, you can reduce the hardware and maintenance costs.
2. Significant Time Saving
Opening your doors to cloud accounting will help your accounting business by reduced inefficiencies and errors in the process of accounting. Thus, the time taken on the traditional services like accounting, bookkeeping and tax preparation is reduced.
Instead of simply preparing financial reports, adding entries one after other and fixing calculation errors — by adding cloud accounting to your accounting practice, you and your team can:
Giving this type of personalised service will encourage more businesses to gravitate towards you. With more time on your hands, you will be able to handle more clients, and thus, enjoy more profits. Solving the business problems of your clients in an effective way makes both you and your client more productive, thereby increasing your value to the client.
3. Significant Security
Reliable cloud accounting solutions maintain their equipment and software and ensure that all security measures are in place so that no data loss occurs. Some of the security features available in a cloud accounting software include:
Additionally, there are accounting softwares such as Giddh that provide you with security features like invoice lock, which locks your invoices till a particular time so that those invoices can’t be deleted or messed with.
Giddh also gives you the power to grant permission to a member of your team with a specific email address or an IP address for a predefined period of time.
With these security features, you can always have a peace of mind that the financial data of your client is being shared with the right person at the right time. Once the job is done, the permissions will be revoked automatically leaving the data safe from any malicious tampering.
So, Why Does This Matter to Your Accounting Practice?
These recent changes in accounting cover a wide range of industries and business owners of every kind have already started to face the impact of this shift.
They no longer need to be dependent on their accountants for immediate request of reports and data — as it is readily available via real-time dashboards and SMS notifications.
But that’s not a bad news. Because ultimately, cloud accounting empowers you, the accountant and accounting service provider, in helping those business owners make smarter decisions with confidence thanks to your expertise in analysis and financial insight.
Ultimately, cloud accounting empowers you, the accountant and accounting service provider, in helping those business owners make smarter decisions with confidence thanks to your expertise in analysis and financial insight.
Still Not Convinced?
Ifyou’re still unconvinced, you can go back and give some of our other blog posts a read where we go into detail about the different advantages of cloud based accounting to different types of businesses.