Why Large Companies are Moving to Cloud Accounting
Technological advancement has completely transformed the face of business in the world. It has caused a shift to digitization in the way we do business. Together with the change of demands from customers are the sole reasons for companies embracing cloud accounting. Shareable features, secure storage, and easy accessibility are the key motivators for moving to the cloud.
Many business owners acknowledge the inevitability of moving to the cloud. For others, it is deciding the time and the type of cloud that stand between them and cloud accounting. Soon the majority of SMEs and mid-sized companies will be moving to the cloud too. Large companies usually with over 5,000 employees are characterized by complexity in all manners. The complexity stems from their structure to the size of operations.
Thus you find that the common reason why these companies are moving to the cloud-based applications is to get up and running quickly. Cloud accounting helps overcome the disadvantages tied with complexity.
But What is Cloud Accounting?
Cloud accounting is whereby you access accounting software through a network via a cloud application service provider. The application software is not installed on your desktop but accessed online. Application functions are therefore performed off-site. Cloud accounting is an example of Saas (software as a service) business model.
Online accounting platforms will enable your business to create invoices, pay bills among other key accounting functions. You can also digitize your tax function which includes submitting returns digitally. Cloud accounting will offer a whole lot of benefits. Here are the benefits that large companies enjoy from cloud accounting.
1. Access to Real Time Information at All the Time
Cloud accounting provides a collaborative system. You can work on the same file your accountant is working on at the same time. It is unlike the manual system whereby you require to store files in separate drives for such an interaction. If your company is internationally spread, several multinational companies can work together in real time using this technology.
Synchronization is quicker and better, and the differently located companies can access the same information instantaneously. You can also engage for help online in real time and get answers for your questions live. You get a clear overview of your financial position. Thus you can make quicker and better decisions.
2. Improved efficiency
In cloud accounting, data is updated immediately to the existing storage. And since it is done on remote storage, there is no time-consuming installation. Moreover, there is no updating processes are involved and no need of time for data back-ups. All these help you save much of productive time and effort. Thus you improve the productivity of your company as you can mobilize resources in a better way.
3. Improved Accuracy
Whereas the manual storage system is prone to errors, accounting software on cloud storage is unlikely to have errors. This is because the remote software is well structured and is put to use after thorough testing. It is a system that features convenience and easy data organization. You don’t have to check your financial data for consistency. The processing phase already overviews your accounting information.
4. Data Security
With cloud accounting, you can keep your storage system safe from all threats. With financial data, the security aspect can’t be stressed enough. This is because you require data security at various levels. Physical storage devices are prone to physical damages, and no one wants to sacrifice the safety of data. Accounting software on cloud systems will help you to maintain this data security when well deployed.
Cloud computing assures the security of that financial information you put in the system. It necessitates no need for manual backups across multiple storages. The cloud accounting tools promote safety and regularly provide backup of your data.
5. Cost Saving
The absence of expensive upgrades, the downtime and up-front license fee saves you a lot of money. With cloud accounting, software is updated live, and you are not charged. Thus, no cost of upgrading your system with the latest version and you access new features instantly. All your files are stored in the cloud, and you don’t have to spend money on back-ups.
Another aspect is that an unlimited number of users can access the same file at no extra cost. You only need to pay a monthly subscription and obtain a good deal of services. Thus you gain better control over your financial resources and get overall cash flow improvement.
Cloud accounting allows you to work from anywhere, not necessarily from your office. You only need a device with internet connection. You can work from home, while on the go and get an update of your business performance. You can view your business account balances, see your outstanding invoice and know your cash position all the time.
This cloud setup keeps you on the go and highly productive. Unlike the manual system, you don’t need to carry documents with you wherever you go. You only need to download them from the cloud wherever you are.
7. Friendly Accounting Interfaces
The Cloud storage offers better and friendly user interfaces and navigation features. It is a straightforward navigation system, and anyone can use it. The intuitive buttons help to use the dashboard easily. It saves you cost and time to train a new user in a desktop accounting system. Saves time also because your employees experience no hassles executing accounting operations. They can also make use of the user guide.
8. Online Forums Help
You will always find community forums with any cloud accounting software. They are particularly helpful to new users to clear unresolved issues. These forums feature discussions where you can post your question and get a relevant answer. So if you find the initial guidance from the help button is not sufficient, you can seek help from the forums.
The cloud accounting system is scalable. Don’t necessarily invest in costly hardware but simply pay a monthly charge to a cloud company. You can scale the size of space as required. You can consider sourcing a third-party company for managed IT services. They will help you control your cloud accounting process.
Once you adopt cloud accounting, you will realize how you will streamlined account management system. You will only need to choose one that best meets your needs. It is now clear why large companies are moving accounts operations to the cloud. It is a solution that will help facilitate your future growth.