There are multiple advantages to cloud accounting, and if you’re an accountant or bookkeeper keen to give your clients the best service you can while increasing your own efficiency, you might be well versed in all of them. However, for those who are not, or for those who wish to explain cloud accounting in more detail to their clients, check out the answers to some commonly asked questions below:
What is cloud accounting?
Instead of storing and accessing data and programs on a computers hard drive, cloud computing stores it all over the internet; with ‘the cloud’ being a metaphor for the internet.
What are the advantages of cloud accounting?
Some of the most common benefits of cloud accounting include – but are not limited to – the following:
- You can automate a range of manual bookkeeping and accounting processes:
Enabling accounting professionals and their clients to save time, automated processes increase efficiency and promote business growth.
- Data can be accessed from anywhere
Irrespective of the location or device, with data made so readily accessible, accounting professionals can serve their clients better.
- Data can be updated in real-time
Businesses are given the opportunity to make swifter, more informed decisions about their financial circumstances when they can access their financial data in real-time.
- Businesses can scale their processes to meet their growth needs
Cloud accounting software can easily support even the most rapid of growth.
- Your business can go paperless
Beneficial for the environment and from the perspective of cost and office space, cloud accounting eliminates the need for paper documents.
- You can lower costs
There are myriad costs associated with traditional forms of software, but with cloud accounting, these are all but eliminated, enabling you to save money.
How secure is cloud accounting?
Cloud accounting software has many security advantages, and with each solution having its own security policy outlining how it protects sensitive data, not to mention measures such as multi- factor authentication and encryption in place, sensitive data has never been safer than when stored in a cloud accounting system.
What will happen if you don’t make the transition to cloud-based technology?
The world of accounting is changing by the year, and if you want your business to keep up with the times and attract and retain a loyal customer base, you’ll need to make the transition to cloud accounting, and sooner rather than later. If you outsource any of your accounting and bookkeeping needs, there’s a strong chance that the service provider will use cloud accounting, and so, if you want to reap the rewards of a cloud-based solution without committing to it in your own business, then outsourcing could be the answer.
To find out more about cloud accounting or outsourcing, reach out to a reputable accounting and/or bookkeeping professional, today.