The Latest Trend in Accounting? It's Getting Cloudy
By Aditi Bhat
Internet-based technologies are transforming the business landscape across the globe. All businesses want to work smarter and faster, be it real estate, education, healthcare or banking and finance. Most of them are already using cloud services either for data storage or for connectivity and reducing operational costs substantially. Accounting is no different.
The world of accounting has come a long way from manual bookkeeping to automation and now cloud accounting. People are outsourcing their accounting needs to divert their focus towards expanding and generating new business. This is the main reason why businesses are investing in cloud accounting software. So if you’re an accounting professional who has a banking and finance degree, then you should really be in tune with the latest trend in accounting: the shift to the cloud!
Time to move to clouds
A report by Gartner states that in 2018 about 40% to 50% of business users will move their core collaboration and communications systems to cloud platforms. The cloud is a platform that offers access to data and software online anytime, anywhere and from any device. Cloud accounting is the need of the hour because it leverages software that runs on servers and stores data on cloud.
As a business owner, you might have security concerns with cloud service providers storing your data. You will be surprised to know the cloud is one of the most secure platforms to store your data. In case you have used online banking, then you’re already aware of the know-how of cloud accounting and the security it offers.
Why cloud accounting?
Cloud accounting helps businesses by storing and accessing the data in the cloud. Cloud accounting has some noteworthy advantages, including:
- Data is accessible anytime from anywhere in real time.
- Reduced business costs compared to traditional accounting software.
- Cloud accounting software is highly secure. With frequent backups, server scanning for threats and data allocation over an encrypted connection, it provides strong data security.
- It provides effective team collaboration with multi-user access. Online collaboration between advisors and business owners becomes easy and saves time, money and efforts.
- With free and automatic updates, cloud computing software does not get outdated and obsolete.
- Cloud accounting software provides integrations with applications like Dropbox to create new possibilities of integration.
Business owners don't have to splurge on costly accounting software programs or spend hours in traditional and complicated book-keeping reports anymore. There are plenty of software that can fit your pocket as well as your business requirement. Be it managing accounting from online payments, expense tracking or generating accounting reports and taxes on the go.
FreshBooks, Dynamics 365 by Microsoft & Acumatica Cloud ERP and Xero are a few popular cloud accounting software serving the accounting needs of businesses, big or small. It’s a good idea to opt for online certification training in these software programs to become proficient and improve your accounting skills.
Work faster and smarter with cloud accounting
The beauty of cloud accounting lies in the flexibility and compliance it provides to business owners. Book-keepers, advisors and chartered accountants no longer need to go through the pain of importing client’s data files into their systems.