With the internet affecting almost all facets of our life, it was only a matter of time that the spaces available on the hard disks of computers will cease to be sufficient. When it comes to businesses that require constant connectivity and sharing of information in real time, there is an increasing need for cloud-based solutions.
If we talk about accounting in business organizations, the cloud based accounting software has been a great help to businesses that need flexibility and endeavor for complete transparency in their financial data management. Since the data in cloud accounting is based on remote servers rather than on specific computers, it makes it possible for real time access of the data from any number of devices and in real time with the use of the internet.
Cloud accounting software are mostly subscription based and it is estimated that more than 3/4ths of the small businesses will use cloud accounting software by the Year 2020. There are many wonderful benefits of using a cloud accounting software. Let us discuss some of those benefits in detail:
Safety: The cloud accounting technology ensures that client data is stored in multiple servers that is routinely backed up, thereby minimising the chances of accidental deletion or any kind of technical mishap in the computer’s hard drive. The leakage of data is also impossible since there is no local storage. The risk or fire or other natural disasters destroying the data is also minimised. Basically, a cloud accounting software provides peace of mind to the client so that they can use their time and effort in other, more important aspects of growing their business and taking care of their customers.
Automatic Synchronization: Cloud Accounting software syncs all the client data automatically. The synchronization happens in real time thus enabling the clients to access important data instantly and share it between the other stakeholders .The manual import of transaction or verification of expenses is not required, thereby saving precious time, effort and man hours.
Flexibility: One of the most important benefits of a cloud accounting software is that it quickly adapts to the growth of the business and the changes required. It also allows instant but secure access to the data from any corner of the world and has made the concept of “Virtual Office” a reality. The software allows people the flexibility to work from anywhere and with any device as long as it is connected to the internet.
Access to Multiple Users: Another important benefit of cloud based accounting software is that it allows for simultaneous and concurrent access to multiple users. It makes it very easy for outsourcing purposes where you need to share specific financial details to other vendors who can be contacted directly since they will have access to the same information. This makes the whole process very smooth and seamless. Multi user access is also an invaluable tool towards real time collaboration, and speedy decision making.
Accuracy: Since there is minimal manual entry of accounting data, the factor of human error in data reporting is virtually eliminated through streamlined and foolproof mechanisms of data importing process. The SaaS based accounting software has built in functionalities that can detect duplicate or multiple entries and can even eliminate them. This improves the accuracy and authenticity of the accounting data.
Real Time: One of the most powerful advantages of cloud accounting software is that the users have real time access to data. All the changes that are made or new data added is saved automatically in the servers and are accessible to all the users, at the same time. This also means that there is no limit to how many people can work together at the same time. This enables real time data sharing, faster decisions and seamless channels of communications. It also aids quick resolution to problems since those can be discussed online between a group of people that have a stake in the issue.
Cost Effectiveness: The usage of accounting software that are cloud based is much cheaper in the long term than having a specific solution developed for the business. Since most of the cloud-based accounting software are charged on the basis of Subscription, the business has complete control over the time and the particular set of functionalities that they want to use. Basically, you pay for what you want to use and not everything that is there to use.
Also, for smaller businesses that can experience initial growth pangs and shortage of deployable capital, cloud accounting software makes a lot of sense since they can start by buying packages containing limited functionalities and then gradually add up more services as they grow. This can include adding additional storage space, user access and other more technologically advanced features, as and when required.
Minimum Downtime: When it comes to accounting software, constant connectivity as well as access is of prime importance. Moreover, periodic security upgrades and software updates are necessary to keep the systems updated. In a web-based accounting software, the time taken for executing such updates is longer. But in a cloud-based software, the time taken is less and the users are even advised ahead of time. This empowers the business organizations to plan the upgrades in such a way that their business is not hampered!
The Bottom Line:
As is evident from the above examples, Cloud based accounting software is a big boon to Companies and business organizations. Cloud based accounting software provides the business with book-keeping expertise and advice. The software can really help all kinds of business, especially smaller businesses by making their accounting operations more smooth, effective and transparent. The time and the efforts that a cloud based accounting software saves can be used for concentrating on the core areas of the business, and thereby increase the revenue generation!