How Does Cloud Accountancy Benefit Accountants?

In recent years, cloud accounting services have become commonplace as companies gradually adopt the technology. In most cases, cloud-based accounting software is like traditional software, with the main difference being that it is hosted by remote servers. This means that all data is stored offsite and not on the person’s own computer. It comes with several benefits, although it also raises potential security concerns for some.

Perhaps the biggest advantage of cloud accounting is the much greater flexibility. Instead of only being available on specific computers on-site, accounting data can instead be accessed on any device, anywhere, anytime. This is particularly interesting for companies with several locations, since everyone can access the data at the same time. Also, since data processing is done externally, the technical capabilities of the devices are less important, meaning that smartphones and tablets share the capabilities of powerful desktops. Together these factors make it perfect for those who travel regularly.

Cloud accounting also helps ensure important data is protected from loss. Those using traditional software are at constant risk of hard drive failure, fire, or theft. However, since cloud-based accounts are stored on multiple external servers, they are safe from such disasters. It also saves time by eliminating some tedious tasks like creating and saving backups and installing software updates.

The data tends to be more accurate and up-to-date when you use cloud accounting. Since it is updated in real-time, every time someone logs in, they can be sure that they will be informed of the most relevant information. Because the data is updated automatically, you save additional time and eliminate the inevitable human error that comes with manual data entry.

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Introducing cloud accounting can result in cost savings. It reduces the need for much of the server and IT infrastructure required by traditional accounting software, freeing up assets to invest elsewhere. Cloud software costs also scale well, making them particularly useful for smaller, growing businesses. There’s a lower upfront cost, and you can pay for more capacity only when you need it without waiting for new software or hardware to install.

Security is a key concern for many when it comes to cloud technology, and as financial data is highly sensitive, the same is true of cloud-based accounting. Luckily, they use security features like firewalls and encryption to ensure no data is exposed to prying eyes. Some argue that these features actually make cloud-based accounting more secure than traditional accounting software, since a work computer or USB drive containing sensitive data can easily be lost or stolen.

Cloud accounting services are likely to continue to grow, with some in the industry predicting that over 90% of small and medium-sized businesses will soon be using them. This is understandable given the benefits it offers, especially for smaller businesses. Concerns about security are likely to fade as people become more accustomed to having their financial information available online, much like what happened with online banking. These factors mean that the rapid growth of cloud-based accounting is expected to continue.