Cloud Accounting Software is Growing - Are You on Board Yet?

Do you want your business to work faster, smarter and experience growth in new directions? Well, cloud accounting software may be the best thing you can do.

Here you’ll find a rundown on the fundamentals of the cloud, with a focus on giving you a proper overview of the strategies that are being used in cloud accounting and the techniques to develop collaboration with your team. We’re going to focus on accounting software since it’s definitely a passion of ours.

What is the Cloud?

Often people wonder exactly ‘what is the cloud’. Put simply, the cloud is another way to describe the Internet. PCmag has a pretty on-point description:

In the simplest terms, cloud computing means storing and accessing data and programs over the Internet instead of your computer's hard drive. The cloud is just a metaphor for the Internet.

In other words, we now use the internet as a platform that allows you to access your information anytime and anywhere. Consider the example of online banking, whenever you transfer money from one place to other online, you are using the services of the cloud. That means you don’t need your hard drive every time now.

Software: Then vs Now

Managing desktop accounting software - especially for small businesses - was a hectic task before. Traditionally, people used to spend a lot of time on managing these tools. However, with the advancement of technology, you can now avail yourself to the services of cloud accounting software.

The accounting computer software that was used throughout the world before the Internet gained popularity had many issues:

    • Required frequent user intensive updates

    • Saved information was only as safe as the computer’s age and location allowed

    • One person could access the system at a time

    • Systems were costly and complicated to use, maintain and update

All these problems are solved in the form of cloud accounting.

Building on Concepts: Cloud Accounting Software

So, what is cloud accounting software? Applying what we learned above in the description of the cloud, cloud accounting software refers to the programs – stored in the internet - that allow a person to access their required information at any time and basically from anywhere.

While the software works like desktop accounting software of old, the only difference is you will get the information through a web browser as the information is being provided on the remote servers. The services of cloud accounting are provided in two different forms:

1. Software as a service (SaaS):

In a SaaS accounting service, your data is stored on the server of a vendor, and you can access it through a web browser.

2. Hosted applications:

This type of accounting services involves your desktop and the information of your client running on a remote server. You can get the information through that remote server using the Internet. This usually helps you in accessing your existing data and software.

What are the Benefits of Cloud Accounting Software?

The many benefits offered by cloud accounting is leading to waves of businesses migrating over from desktop tools at a frantic rate and the trend is growing.

Up-to-date Information Every Time

As a businessperson, you need to have access to all the information about the workings of your business. This can be done with the help of cloud accounting software. This software allows you to have an in-depth and up to date view of your current financial situation.

Analyzing this situation will help you in making further strategic decisions. With your data on the cloud, you can always pull reports or manipulate info about your finances. Using traditional methods, people used to spend a lot of time scrolling through pages and searching for the required information.

Build Better Relationships

Success means an increased importance of collaborating and communicating with clients and team members on a daily basis. Often, this can be extended to collaborating with your accountant as well. Obviously, you want your accountant to provide you with information that is accurate and up to date. Cloud accounting software allows your accountant to perform this task in an effective way. Having proper information is a surety that you will get a valuable client.

Access to Your Data Anytime, Anywhere and Fast

Using cloud accounting software provides you with the opportunity to access the numbers of your company anytime and from anywhere. No matter you are the owner of a business or an employee in a company, within working hours you may need to get the data. You don’t have to worry about the access anymore.

Connect to Other Cloud Tools for a Powerful & Customer System

The cloud eco-system includes a massive network of apps that can connect together and work in concert. These connected apps can create a truly integrated system that is tailor-made for your business, handling everything from proposals and invoices, through to sales, inventory and cash flow.

Works Best for a Distributed Workforce

If some or all of your employees are distributed in different physical locations, cloud accounting software will help you work closely with your team, because with internet-enabled software, everyone with access can view, manipulate or add to the current data related to the company, and employees can use the information whenever they want to. Sales, IT, marketing or CEO can work using the same program at the same time from different locations.

Secure Your Information

Cloud accounting software does not only allow access but also provides maximum protection to the data stored. Cloud software builders recognize that you have important company data stored with them, which means that maximum-security measures will be taken. Cloud software either provides its own security measures or sometimes collaborates with third party online security tools as well.

It is clear that cloud accounting software has evolved and is coming into its own. Processes that were complex before have become much more straightforward using the cloud. Access, safety, and cost are core factors that drive cloud users into the new paradigm of accounting - allowing businesses to grow rapidly while experiencing great value.

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