There have been numerous changes witnessed by accountants across the globe in the last ten years, with the introduction of multiple new tax regulations and the advancement in technology. These alterations have changed the way by which modern accounting businesses operate. Numerous small business owners have also changed their methods to provide services and handle their financial matters.
However, according to the Preferred CFO, around 82% of the small businesses never succeed due to improper cash flow management.
They have also stated that improper cash flow management has paved the way to the disgrace of accounting firms. This is why both small businesses and accounting firms require a proper solution to handle their financial affairs and settle the problem. They also need to develop a method to process the necessary filing and accounting operations in a faster way. Additionally, accounting data is sensitive, and its security is another element that any organization cannot ignore.
A reliable solution that comes to find that solves all these problems and offers a lot more benefits is cloud accounting. In simple words, cloud accounting means the delivery of an accounting system via the Internet.
Why do Accountants prefer Cloud Accounting?
Cloud accounting can be the answer for data access in an emergency, file sharing becomes easy, and it provides many more benefits.
Small businesses have come up with two methods by which they can invest in cloud technology.
- The first way is to create an in-house cloud surrounding the entire organization by using their private servers.
- The second way is to contact cloud service providers to get cloud accounting services.
The second method is more suitable for small businesses as setting up an in-house infrastructure requires significant capital investments.
Below are some benefits of Cloud Accounting:
Accounting businesses need to work during non-business hours with international clients, especially during the tax season. And to ensure client assistance, they need to accomplish all the tasks on time. Cloud accounting helps in the same. For instance, you are on vacation when your client contacts you for help regarding the tax filing. You cannot return to the office to get the work done. But with cloud accounting, you can access your accounting software and data to complete the job from anywhere, anytime. Remote access of accounting software such as QuickBooks cloud is a great blessing for the accounting firms and CPAs.
Accountants need to work as a team and share essential data or files. Primarily, file sharing is done via email. However, this creates confusion between the team members because several copies of the same file are made, wasting time and resources.
Modern problems need modern solutions. All the issues discussed above can be easily eliminated by adopting cloud accounting. As the data is stored on a central server, multiple users can access the data simultaneously and make the changes. These changes are reflected in real-time. It also means that all the individuals have access to the same data, resulting in minimum confusion and better collaboration. Hosting accounting software on cloud for small business will help them to accomplish their task on time and collaboration will become more easy and smoother.
In-house IT infrastructure requires a substantial investment. You need to buy costly hardware and look after its maintenance and repairs. Moreover, organizations also need to recruit a team of IT professionals to look after the infrastructure, increasing overhead expenses.
If you opt for cloud accounting from a reputed service provider, it eliminates the need to set up expensive in-house infrastructure. The complete business operations transfer to the cloud, reducing the workload on your IT team. Eventually, you would need to hire lesser IT professionals.
Integrating with various platforms
Accounting firms require multiple applications to take care of the businesses. Numerous organizations integrate their accounting software like QuickBooks with Excel, payroll management software, etc. Multiple integrations like this are often suitable for the cloud platform because the local infrastructure can face several performance issues due to raised loads.
Cloud accounting service providers use high-performance computing servers. This means that you can integrate multiple applications with your accounting software on the cloud without any performance lag.
Cloud providers all over the globe help small business to host their accounting software on cloud and business applications on high-performance servers. The following also means that accountants can integrate numerous applications without facing the problem of lagging. The faster processing of information can always lead to a rise in productivity.