Accounting is one of the most important aspects of running a business. While manual bookkeeping was sufficient before, the continuous advancement of technology offers several improvements for accounting processes. Today, the introduction of cloud-based accounting systems changes the game and provides an exciting opportunity for businesses everywhere.
To elaborate further, here are some of the many advantages of cloud accounting and how they can apply to your company.
Even before the COVID-19 pandemic, a mobile workforce and customer base were already becoming more common. Employees can submit requirements online, and customers worldwide can check your products on the company website.
Having a cloud-based accounting system allows assigned personnel to access information from anywhere at any time. Employees can use their mobile devices, including laptops, tablets, and even smartphones, and log in to the system through the internet. In this manner, they can work on the go and respond to inquiries faster and more effectively.
Automation of Business Processes
The processes that makeup accounting are complex. There are several factors, numbers, data, and information to consider in the calculation. One of the best features of cloud accounting is that several of these time-consuming computations can become automated.
The software accesses data from the cloud, which is consistently updated in real-time. In this manner, accountants no longer need to manually re-enter information in multiple ledgers and spreadsheets. Key formulas are also built into the software, which makes it easier to accomplish time-consuming calculations and reports. Some of the tasks cloud accounting can perform include computing bonuses, distributing payroll, and other budgeting tasks.
Hence, accountants can become more efficient at their jobs and shift their focus to analyzing data and formulating sound financial advice for company management. In this manner, managers have more insight into the enterprise’s financial performance and take the necessary steps to help the company reach its goals.
Increased Data Accuracy
Manual accounting processes are highly prone to human error. Aside from creating duplicate entries, re-inputting information from one department system to another increases the likelihood of mistakes and inconsistent data. Cloud accounting has centralized storage where all the financial data from different departments are stored and updated in real-time. It means that users will be accessing the same information directly from the department that entered the info into the system.
The importance of accurate data cannot be stressed enough. Without them, management may take the wrong steps and risk wasting valuable company resources. With cloud accounting, you can feel assured that the data is consistent and up-to-date. Moreover, if an inconsistency is located, you can efficiently pinpoint where the information is from and correct it immediately.
High Standards of Security
One of the main apprehensions that several companies have on using a cloud-based accounting system is security. After all, storing financial information in a third-party data center requires a degree of trust.
Rest assured that authentic accounting solution providers have strong security measures in place that will uphold the integrity of your company’s financial details. In some cases, these measures might be more effective than what on-premise accounting systems may offer.
Cloud service providers collaborate closely with the company’s on-site IT team. They help ensure that the system is running smoothly and complies with all security requirements.
Scalability and Flexibility
As a business expands, it is not uncommon for financial managers to realize that the current accounting program cannot keep up with the demand. Hence, they purchase new software, which in turn, becomes replaced once more when the company requires features. To save on resources and time on acquiring a new program, businesses need accounting software that can adjust accordingly to the enterprise’s growth.
You can enjoy this feature with cloud accounting systems. These high-performing programs can accomplish a wide range of actions from basic functions up to complex computations. The vendor will help you choose which features best suit the needs of your company. As your business grows, you can purchase add-ons that will bolster your accounting processes to meet growing demands.
Integration with Other Platforms
One of the best features of cloud accounting software is that it does not exist in a bubble. You can integrate the program with various other platforms and tools, such as payment processing and e-commerce, among others. Using the cloud accounting system as a keystone, you can build a network of programs to run many aspects of your business efficiently.
Indeed, there are many benefits to using a cloud-based accounting system. Bear in mind, however, that there are many different kinds of these programs available on the market. To find the most suitable system for your company, make sure to partner with a reliable systems provider and do your due research.
If you’re looking for a trusted partner who can help set up an accounting system that takes advantage of cloud technology, then ANSI is the name to remember. We have years of experience when it comes to providing quality business solutions to companies that are looking to modernize their existing processes. For more information, leave us an inquiry on our contact page.