5 Benefits For Businesses Implementing Cloud Accounting

by Sawaram Suthar    Jul 07, 2016

5 Benefits For Businesses Implementing Cloud Accounting

Every business today, small, mid-size, flourishing or start-ups, are all striving to have more efficient and faster accounting systems and cloud accounting software is proving to be the answer. A cloud system could be considered as an online accountant’s register or a vault where in the enterprises can upload all their accounting data to achieve automation, mobility, accessibility and security and all this is achieved along with cost cutting.

The fact that cloud accounting is the way forward is clearly shown by the global revenue generated by such software over the time period of 2010 to 2015, whereby the revenues have grown consistently from 1.19 billion US dollars in 2010 to 1.93 billion US dollars in 2015.

We hereby tell you why implementing cloud accounting can be the thing to do for your enterprise and how it is helping enterprises get better.

1.      Automated accounting and business functions:

With the growing amount of financial information, it is necessity to stored increases along with its retrieval demands, and frequency. Automated data collection, storage and retrieval a system by cloud accounting ensures that there is data accuracy and integrity will avoiding duplicate entries. It also takes care of various business functions allowing the accounting team to be in a role of monitoring the process rather than filing documents or entering data manually.

Cloud accounting software like Capium or Freshbooks, help you create online invoice with design of your choice, invoice tracking details, order details and tax information. It also allows clients to pay these invoices online. It also provides updates to the enterprises when their client has seen this invoice and paid it.

This could be a useful feature for service based companies where this software takes care of orders, invoices, taxes, payments, sales and thereby saving many man hours by just few taps of the keypad and clicks of a mouse.

2.      Accessibility and Security:

Accessibility to the right data, at the right time, in the right format and to the right persons is something that can be achieved by cloud accounting. Since the information is stored on online servers, it is available at any place with internet access.  Moreover, one does not have to depend on office working hours to get the required data.

This is an essential function for businesses transacting over different time zones. Since the information is stored under various subcategories, it will be an easy task to receive a full report of the expenses and the income of an enterprise relevant to various entities. Sage cloud accounting software maintains a record of the inventory of businesses and helps the decision makers to formulate policies based on the trends. The accessibility to this information can be restricted to only the concerned persons with help of multiple passwords which is a part of multi-factor authentication.

Some software’s also the facility of voice recognition and fingerprint recognition for authentication. Cloud storage also eliminates the threat of data theft by portable USB devices and also monitors user activity and thus helps establish accountability in case of any damage to data integrity.

3.      Efficient:

Cloud computing helps businesses create efficient data management system while saving money which will be spent on hardware installation and setup of data management centres. In a survey of Chief Financial Officers,around 50 per cent said that their IT systems were not equipped to handle a change in business strategies or scale of operations while only 40 per cent felt that their data management systems could provide data in the right format to offer business insights to facilitate future strategy designing.

Cloud accounting serves as an efficient answer to this conundrum. Since it is server based software, there is no need for the users to upgrade the software to install it. All the upgradation is to be done by server operator and not the businesses. Moreover, it also serves as a data backup point which will otherwise be a laborious task if done on computer based local storage devices.

4.      Customized operations

Enterprises must select a cloud accounting software based on their scale of operation and type of business. According to a survey, the top 10 cloud accounting software of 2016 are available on monthly payments which range from INR 423 to INR 1610. Most of these systems allow a one month free trial period for the users to confirm if the cloud system meets their business requirements.

For a small scale business with needs limited to simple tracking of expenses, Freshbooks will be overwhelming and Kashoo will be recommended software. For freelancers, FreeAgent will be of great help. Even Sage, has three modules Sage One, Sage Live and Sage 50 which offer different features to the users. Globalisation often demands businesses to maintain multi-currency bookkeeping for which they can use cloud accounting softwares like Kashoo, Inovoicera and Xero while larger businesses with detailed book-keeping needs and customer relationship management programs can opt for Freshbooks, Quickbooks online. [8]

5.      Recent trends:

According to a survey conducted by RightScale in 2016 regarding Cloud computing, several insights could are available. With more businesses opting for customized cloud accounting, private cloud adoption increased by 14 per cent in the year 2016. Security measures have been enhanced for cloud computing as it was reflected in the results that it was not the primary cause of concern for the enterprises which is in contrast to that in 2015.

Enterprises have started adopting cloud computing to a great extent and the demand has been such that there is a scarcity of expert personnel to design, develop and maintain these systems. While 26 per cent of the survey participants said that cost management was a concern it was also identified that there is a huge scope for optimization of cost.

  While there are certain areas like cost optimization which can be improved and also the subscription to these cloud accounting softwares and training the operators will cost a business initially, they will prove to be the most efficient and widely accepted forms of accounting, moving ahead in the future.

(Sawaram Suthar is a digital marketing geek. Currently, he is a marketing consultant at Skyward Techno Inc that provides CRM and ERP. You can reach him @sawarams or via his blog thenextscoop.com)