Benefits of Cloud based accounting applications

• October 15, 2020

Cloud accounting software is much similar to traditional software but in this case your accounting software is hosted not in your computer, it is in remote servers. You sent your financial data into “the cloud” where it is being processed and developed after which returns to you. It means that you can access your financial data anytime, anywhere, from any device.

So, if you want to get the right answer and make good decision which will enable your business to work smarter and faster, then consider this advantages, that cloud accounting can bring to you.

1. Security of your data. By using strong anti-virus tools and being monitored 24 hours a day 7 days a week they ensure more security than the office computers. It also prevents your valuable information from natural disasters, fire and you can’t lose it if your computer is stolen or broken or destroyed by a virus. Every cloud accounting provider has third-party certifications and evaluations which assure that they have specific security controls, for example storing a data on backup servers in two or more locations.
2. Money saving. Let’s see how cloud accounting can save you money.
   • You don’t need to buy version upgrades, software license, pay for maintenance, fees for database and other system administrative costs,
   • You don’t have to purchase new hardware, such as servers or expensive equipment,
   • You don’t need to pay additional money to IT and system management stuff.

   Cloud accounting requires less maintenance, completes the backups, updates automatically and you don’t need to buy anything and install on your computer.

3. Time saving. As was mentioned before the main characteristic of cloud accounting is that you can have access to your data any time you want. Moreover you can give access to key stuff members or advisors and manage things together without waiting for appropriate time for meeting. You don’t need time to install new versions of software, you get real-time reporting and updates instantly.
4. More precise and accurate accounting. With cloud applications you have clear and up-to-date picture of your business and current financial position. Due to the automatic on-time updates and lack of manual entries there is less or almost no opportunity of errors. This cloud applications also provide effective management of accounting balances, multi-currency and multi-company transactions and other complicated functions of cash flows and financial management.
5. Better relationships with accountant and clients. Cloud applications give you limitless access to your data and advanced searching tools, so you can give answers to your clients, vendors or distributors about invoices or payments anytime they need it. You can discuss that information with your accountant and save time for you, for your accountant and for your clients.

This is just a small part of endless possibilities of cloud accounting. Consider every benefit more deeply and you can understand why more and more businesses are switching to the cloud.

If you still hesitate, listen to the words of experts

“Your old, outdated desktop accounting system … using it yourself is painful, time consuming, and you almost need to be an accountant to operate the system. But if you ship your records off to your accountant to handle, you have no visibility into how your business is performing on a real-time basis. It’s a lose-lose situation. Cloud accounting software, conversely, hits two birds with one stone and makes your accounting easier than ever.”
— Ryan Lazanis, xenaccounting.com
“The move to the cloud has been a huge benefit to small businesses. One of the areas where we see this most prominently is the accounting software space. Before the cloud you had to pay several hundred dollars upfront (at a minimum) to purchase accounting software.”
— Dave Waring, fitsmallbusiness.com