It could be time to upgrade to a cloud-based accounting system if your business still uses desktop software or spreadsheets for accounting. In comparison to on-premises solutions, cloud-based software has several advantages, such as the freedom to work from anywhere at any time, the automation of laborious manual operations, increased accuracy and compliance, and the capacity to expedite financial closing procedures.
Companies may also benefit from more predictable software expenses, lower hardware costs, lower IT overhead, improved disaster recovery, smarter threat and security monitoring, higher levels of availability, improved performance, and scalability, depending on the software.
15 Cloud Accounting Advantages for Finance Professionals
With a cloud system, the supplier handles hosting and upgrading of your accounting software. You move your books online and use a browser to access the software, paying a membership fee for the service. The computers at your business don’t need any software to be purchased or installed, and cloud software is less expensive to implement and deploy to other places.
Any system built in the cloud has a number of benefits, including allowing authorised users to access current, accurate financial data while at home or on the go. Additionally, some systems offer more sophisticated features, like extensive automation of accounting procedures.
- Reduced administrative work: Because cloud accounting software is accessed online, business owners can do away with time-consuming software installation, backups, and other administrative activities. To run your accounting software, you don’t need to invest in or maintain servers or other IT infrastructure. Regular backups of crucial financial data are automatically performed by your accounting provider, so you don’t need to. Staff members can spend more time on the profitable tasks that expand your company by spending less time on administration.
- Always up to date software: The most recent version of the software is always available because it is stored in the cloud. The cloud service provider automatically updates the accounting program to reflect modifications to tax laws and accounting standards as well as to provide new capabilities. You won’t need to worry about updating your software in order to keep current because you’ll always have access to the most recent version whenever you log in.
- Automation: Many accounting and banking operations are automated by cloud-based accounting software, resulting in a reduction in manual labour. The software, for instance, can generate recurring bills, pay subscriptions, schedule reports, import bank and credit card transactions, and record transactions to the appropriate ledger. When invoices and purchase orders don’t match, it may automatically calculate taxes and discounts and indicate those instances as exceptions. With the ability to automatically handle tax computations for numerous nations, some cloud accounting software solutions are particularly helpful for worldwide sales.
- Compliance: This is made simple thanks to cloud accounting tools, which provide precise financial statements, quarterly tax projections, and annual tax returns. By doing this, business owners can avoid under-reporting their tax obligations, which could result in audits or penalties, or over-reporting and overpaying. Cloud computing systems also assist in ensuring compliance with all applicable tax laws by automating computations for both domestic and international taxes. To adhere to established accounting rules, several top cloud accounting solutions even automate revenue recognition.
- Paper-free and eco-friendly: Conventional accounting frequently involves a tonne of paperwork. Physically storing archived paper data or manually distributing paper reports to investors, lenders, and other parties is wasteful and redundant in today’s computerised world. In order to import invoices into the cloud accounting system directly, request that vendors deliver them electronically. By scanning paper invoices and receipts for processing, you may organise your workspace. Sending invoices to customers via email saves money on printing and shipping while accelerating the payment process. Using less paper also has a positive impact on the environment: The average company produces 350 pounds of wastepaper per person each year, and millions of printer cartridges are burned or dumped in landfills. Cutting back on every business having their own computer server and migrate to a cloud system will also have a huge impact on saving energy.
- Data security: You might be worried about putting private data in the cloud, but, cloud accounting services can really improve security in a number of areas for the majority of firms. To ensure that only authorised users can access your data, cloud providers first apply numerous levels of security, including strong encryption and access control. Also, they regularly backup your data so you don’t have to worry about losing important financial documents. Your data is secure because it is saved online, so it won’t be compromised if a worker loses a laptop or if a building suffers fire or flooding damage. So, your IT team can concentrate on protecting endpoints and guaranteeing that workers have the appropriate access privileges for their positions.
- Scalability: One of the most alluring aspects of the cloud is scalability. Spreadsheet accounting quickly becomes unwieldy as a business grows, and desktop-based accounting software often has limited capability, which can be detrimental to a developing company. For instance, you don’t want to be forced to use a system that you’ll outgrow in a year if you’re a company with expansion aspirations. With comprehensive cloud-based accounting software, you can start with the most basic accounting capabilities and add more as your business expands. It can scale and adapt to your firm’s demands.
- Accuracy: By removing many of the risky manual procedures necessary when using spreadsheets, cloud-based accounting software increases accuracy. Cloud computing software can automatically classify transactions, calculate taxes, match received invoices to payments and shipments, and even automate reconciliation procedures by comparing internal transactions to bank records and highlighting inconsistencies.
- Accurate reporting: All financial data is kept in one database via cloud accounting systems, ensuring that everyone in the company has access to the same information. Teams no longer waste time trying to determine whether version of a spreadsheet is accurate. Consistency across all accounting procedures and financial reports is guaranteed by a single, unified, authorised data source.
- Customisation: Because every business is unique, it makes sense to select cloud accounting software that can be adjusted to meet the specific requirements of your firm. You may customise processes and workflows with some cloud accounting solutions to better suit the way your business runs. You can create customised dashboards that give each user a quick overview of their most crucial KPIs and other data. Also, you can include company-specific terms and branding.
- Accessibility/availability: Cloud-based accounting systems free you from the limits of your office, in contrast to traditional desktop accounting software. Authorised users of online accounting software can log in at any time, anywhere, using a web browser or mobile application. They don’t need to wait till they get back to the office to approve payments or submit invoices. Members of the accounting team are always connected to the most recent financial data and real-time analytics. It is simpler for staff members who are working from home or while travelling to share electronic papers as all data is kept in the same cloud-based system. True cloud applications can be accessed without the need to purchase additional software such as a VPN.
- Real-time reporting and data visualisation: It can be challenging to acquire a quick, precise, and current snapshot of business performance when a company administers its accounting using spreadsheets or paper-based processes. As a result, managers may fail to see problems in time to stop them from becoming more serious ones. This issue can be resolved by real-time access to centralised financial data offered by cloud accounting solutions. Users always have an up-to-date perspective of the company’s current financial status rather than having to wait for previous reports that are weeks or months out of date. Simple charts and key performance indicators are created from complex data by dashboards and other built-in analytics tools. Using cloud software, data visualisation costs far less and helps the team quickly see trends that have an influence on the business.
- Possibilities for integration: A few cloud accounting solution providers offer extensive collections of connected business applications that access the same main database. You can add modules that deal with practically every part of the business as your firm expands, from payroll to inventory management, marketing, and e-commerce. You will get a precise, up-to-date view of financial data throughout the entire company because all of these systems draw data from the same database. The most effective cloud solutions have also developed ecosystems with hundreds of providers who offer supplemental goods to add specialised accounting functions or increase automation. Also, you can link up with online platforms for billing and payments.
- Collaboration: Team members can more readily cooperate because all financial data is kept online in a single database. It’s not necessary to maintain numerous copies of the same file or transfer data to USB sticks before sharing it. As long as they have access to the internet, employees can collaborate from any location. This can speed up the financial closing procedure and make other jobs easier, like forecasting.
- Efficiency: Automatic accounting procedures, immediate access to reliable data, and less administrative work all contribute to a more effective accounting function overall, which raises the effectiveness of the entire company. Due to improved accuracy and built-in controls, your staff will spend significantly less time manually entering and verifying data, and they will also work less diligently to resolve problems like invoice mismatches. Because of automation and improved data accuracy, staff workers can avoid rushing to combine data from several systems in order to meet deadlines. Also, everyone inside the firm has access to reliable, current financial data, allowing them to use it to make decisions that will enhance business performance.
Switch to cloud accounting
Moving to a cloud-based accounting software system can improve efficiency and offer real-time visibility into financial performance, whether you’re a fledgling firm or a multinational enterprise. The automated daily transactions, accelerated financial close, and assistance in maintaining compliance with tax laws and accounting standards are all features of the Sage’s financial management software. You don’t have to invest in or maintain on-premises gear and software because the software is cloud-based.
Compared to desktop-based accounting software and labour-intensive spreadsheet-based processes, cloud accounting solutions have many advantages. The most effective cloud solutions automate every accounting task, lowering labour requirements, increasing accuracy, and speeding up financial closing procedures. From any location in the world, employees may access real-time financial data and communicate. Complete cloud-based solutions are adaptable and adjustable to meet the needs of expanding businesses and interface with a wide range of other business apps.
Here at Itas Solutions, we love cloud computing and Sage’s Intacct is the perfect solution for mid-sized businesses to take advantage of cloud accounting.
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Having started in 1995 with just one customer, Itas Solutions now supports over 200 clients nationwide. They know we are always there to provide a helping hand, whenever they need us. Trusted by our customers for over 20 years, Itas has been built on referrals from customers and IT professionals that love the expert yet personal service that we offer.
If you would like to know more about how Itas can help your business with finance automation, Sage implementation and improve purchasing control, you can get in touch at email@example.com, call us on +44 (0) 1824 780 000 or contact us via our website.