The term “cloud-based” is relatively overused to the point that many aspects of our lives are run by cloud computing. Look at Google Docs, Slack, Dropbox, and Amazon Web Services, to name a few. All of these applications are cloud-based software which many people may now find impossible to get through the day without having to use one or more of them. The thing is, there is a good reason why cloud-based systems are increasingly preferred by businesses, and this goes for those in the accounting industry as well. In this article, we will be looking at the advantages of cloud accounting, though before doing so, it is important to understand exactly what cloud accounting is.
What is Cloud Accounting?
Cloud accounting essentially refers to cloud-based software that can handle all the traditional accounting tasks, such as balancing books and managing accounts. Similar to other cloud-based systems, cloud accounting allows users to perform whatever is required or access tools through the internet. Since the interface and all functions are provided online, this means that users do not have to be on-site or at a specified location in order to carry out their tasks.
There is no denying that the introduction of cloud accounting has made financial management much easier, especially for small to medium-sized businesses that may not have sufficient resources or manpower to organise their accounting duties well. The drawbacks or disadvantages of traditional accounting are also significantly reduced or even removed by using cloud accounting.
If you intend to switch to cloud-based accounting for your business, you can look forward to enjoying these benefits, listed below.
Advantages of Cloud Accounting
1. Secure sharing of data and other sensitive information
Data security is one of the most vital aspects of the entire accounting process. As accounting deals with the business’ financial records and even clients’ or customers’ private details, such confidential information should be well-protected and away from the hands of cybercriminals. Unfortunately, we have seen news of more and more companies suffering from data breaches that negatively impacted their public image. No business should fall into such situations, so doing due diligence is essential to carrying out accounting duties securely.
With cloud accounting, business owners or in-house accountants no longer have to take extra time and effort to ensure that their financial, payroll, and tax-related information are safely shared and stored. This is because the software only grants access to authorised personnel and has put in place complex security measures to prevent uncertified users from getting hold of these information. In addition, cloud accounting software eliminates the need for sending emails back and forth, which increases the risk of cyber threats.
2. Access accounts and information everywhere and anytime
At a time when businesses are embracing remote practices, and employees can work virtually anywhere, having access to your accounting information 24/7 is not just a huge convenience but also becoming a necessity. As mentioned above, cloud-based accounting services operate entirely on the internet, so as long as you are connected online, you can perform your accounting tasks and oversee any statements or chart of accounts wherever and whenever you are.
Having an overview of your business’ current financial status can be incredibly beneficial as it allows you to achieve real-time reporting, assisting you in gaining better insights to make effective financial or strategic business decisions in the long run.
3. Streamlined accounting process
Some accounting tasks can be rather complicated, even for the most experienced accountants. This should not be too surprising since accounting encompasses many forms and areas, from banking and payroll to billing and tax. If everything is not properly organised and kept in check, it is highly likely that the accounting process can be messed up, confusing users along the way. Considering that cloud-based accounting software is a single platform integrating all of these services, businesses can now run their financial processes efficiently and smoothly.
At Tianlong Services, we provide cloud-based accounting bookkeeping services that are managed by qualified accountants who understand each business’ unique needs. We are aware that when it comes to accounting, there is no such thing as a one-size-fits-all approach. As such, we seek to consult with our clients first in order to come up with suitable accounting solutions that can enable businesses to achieve their goals while adhering to reporting standards. To find out more about our accounting services, feel free to get in touch with us today.