How Does Cloud Computing Transforming The Accounting Industry?
Nowadays, the impact of globalization, the speedy advances in science and technology, the increase of massive knowledge, the wide unfold of internet-based applications and even standardization have created the right context for the emergence of cloud technology. Cloud computing has an impact on many industries and businesses; one of the other affected areas is the accounting sector. The focus of this article is to highlight the effect of the cloud on the accounting industry.
Our approach is specifically focused on the monetary benefits and also the other benefits cloud has to offer. Accounting is one of the traditional sectors next in line for an automation upgrade. This means practice owners will have more options to automate some of their basic accounting tasks – freeing them up to focus on their customers. They will be more than happy to eliminate the administrative and manual data entry tasks which will help them to focus on their clients and building their business.
Earlier at the beginning of the cloud era, accountants were hesitant towards it due to lack of knowledge and expertise; it was unexplored territory for them.
As the decade is progressing, the paradigm is shifting, more and more accounting firms and small businesses are moving towards the cloud for more productivity and efficiency. Now accountants are looking at a great opportunity of creating new roles and we know that the change is happening and it is happening fast. They are also not afraid of using automation techniques to complete their tasks.
With this advancement in technology, accountants should adapt the idea of the cloud and get associated benefits; otherwise, there is a big risk of being left behind in this progressing cloud era. The impact of cloud computing is presently undisputed and will be responsible for providing future ideas.
There are multiple benefits for the whole financial & accounting sector, once accountants assess the results of the changes by opting for the cloud in respect to the whole accounting system.
For a small business, traditional accounting applications are expensive and complicated as well as they need internet, local IT setup, and storage capabilities to function, along with installing, configuring, and updating the software.
Now, on the contrary, performing accounting operations on the cloud becomes way easier with increased collaboration, anywhere access, scalable systems. Cloud ensures that all the users have access to the same information from any location; the only prerequisite is a stable internet connection.
Benefits of moving your operations to the cloud:
•Reduced IT cost:
As everything is happening on the cloud, there is no need for setting up local servers or hardware resources, also, most of the cloud companies follow the pay-as-you-go model which means instead of paying a large sum upfront, you can simply pay as per your usage on a monthly basis.
You can access your information anytime from any location without any geographical constraints, and that is from multiple devices. This is very crucial for making decisions as you get access to your financial information in real-time.
• Increased productivity & flexibility
With fast data transfer & real-time data access, the users are more in sync which results in higher productivity and increased team collaboration. Also, the resources can be scaled anytime as per your business requirements.
Daily Data Backup
On the cloud, your data is backed up on daily basis on multiple levels; in case of accidental data deletion or loss, the data can be restored at any time from backup copies. Your data get stored in onsite & offsite locations to ensure in any hazard, the data can be restored to ensure business continuity.
Securing your data is the topmost priority for clod hosting providers as they understand the value of your data. Enterprise-grade security tools have been used to protect the cloud network, many providers use 256 bit SSL encryption to encrypt the data to add an additional level of security.
Aspects to consider when adopting Cloud Accounting
Cloud comes in different variants and offers a different kinds of solutions, organizations should consider all the characteristics of their business before choosing a suitable cloud hosting service. If the right solution is chosen; it will definitely enhance the capabilities.
Data migration is one of the other very important aspects that need to consider before moving to the cloud; the amount of data that needs to be transferred and the best time to perform the migration are key points for a successful and smooth transition.
There are other financial and pricing aspects involved too; paying attention to the costs that come along with a cloud-based system. The benefits cloud offers have a price as well, so a careful evaluation is required to ensure the pricing does not exceed the current accounting model.
Being an accountant & financial advisor requires real-time access to the data provided by remote technology. Not only can it assist in creating and tracking progress toward prospective clients, but also gives 24/7 access to that information your clients can use to make immediate decisions. The more business-friendly touchpoints you have with your clients to monitor their business’s success, the more value you create for that relationship.