The term “cloud” is extremely overused and worn out by this point. However, it has never been more relevant in terms of revolutionising the efficiency of bookkeeping, data analysis tools and many accounting services.
In simple words, cloud-based accounting is a new way of accessing accounting software from the web browser without installing it and refers to the delivery of computing services via the internet.
Prior to cloud, most accounting software was desktop based, which meant that applications were installed and run from a hard drive. This has numerous drawbacks including:
- Limited access to data
- The need for constant software updates
- Backing up all financial information
Even though cloud accounting software has the same function as desktop accounting, all information is moved to a cloud. This makes it easy to log onto a portal and access all safely secured data.
Below mentioned are the key areas where cloud accounting adds tangible value and reasons as to why it would be the beneficial system to move forward with:
- Access to accounts from any location with internet.
- Access to real time information and reporting.
- Access to app ecosystem providing many different tools.
- Secure sharing of data without USB memory sticks or back and forth emails.
- Connected online payment.
- Eliminating consuming and costly updates by automatically always using the latest version of the specific software.
- Offers the ability to link banking directly with accounting instead of manually keying-in each bank statement line.
Given the major advantages of cloud accounting and its lower upfront cost, many newer companied adopt a cloud accounting solution from the beginning as they see it to be much more beneficial and efficient. It is no longer just the future but is now something that businesses need to adopt in order to stay in the market and avoid falling behind.