The Benefits of Cloud Accounting for Modern Businesses

Did you know that 58% of large organizations worldwide are employing cloud accounting for their businesses? 

Ever wondered why?

Well, it is due to the plethora of benefits that cloud accounting offers to CPAs and accounting firms who were once head-deep in manual data entry, management of tedious bookkeeping spreadsheets, and other crucial paperwork that resulted in inaccuracies, and longer turnaround, (not to say about the persistent headaches that came handy).

With the advent of cloud accounting, CPAs and accounting firms are now basking in the benefits that have boosted their efficiency, while streamlining key operational areas, essentially benefiting the organization at large.

Cloud Accounting- What is It? 

Also known as online accounting, cloud accounting enables end-users to access pertinent financial information and perform accounting works in real time irrespective of the location. In other words, this technology not only stores but also manages the firm’s data on a secured platform that can be accessed at any time from any geographic location.  

Cloud Accounting- Its Benefits for Modern Businesses

The adoption of cloud accounting brings a host of benefits for modern accounting businesses, some of which are mentioned below: – 

1. Accessibility

Cloud accounting helps accounting businesses access pertinent data from any device, or any location with an internet connection. It thus enables multiple users to access financial information in real-time, making it easier for accounting teams to collaborate.

2. Cost-Efficiency

Unlike traditional accounting software, which requires significant upfront investment, cloud accounting usually functions on a subscription basis, making it affordable and manageable for accounting firms. In addition, online accounting also removes the need to maintain expensive IT infrastructure and servers, which are typically handled by the provider itself, thus proving to be a cost-effective option for CPAs and accounting firms.

3. Enhanced Scalability and Operational Efficiency

Cloud accounting allows scalability options to accounting businesses wherein they can adjust the services per the needs of their clients. In other words, online accounting can help CPAs scale up or down the services per the requirements of the clients, occurring due to market fluctuations. 

Besides, online accounting software often integrates seamlessly with other cloud-based tools, thus enhancing overall operational efficiency of the accounting firms.

4. Improved Accuracy and Compliance

Cloud accounting encompasses features like automated data entry and reconciliation which help in the reduction of manual errors by the accounting firms. It also aids in streamlining financial processes. Additionally, cloud accounting software employs certain tools and features that help CPAs in ensuring their client’s businesses stay compliant with financial regulations and tax laws.

5. Enhanced Security

Renowned cloud accounting providers use advanced encryption methods to safeguard financial data from unwanted access. It also protects data during transmission or storage. Besides, automatic backups ensure that the data is safe from loss occurring due to accidental deletions, hardware failures, or other issues. These online accounting providers also extend robust disaster recovery plans that help accounting firms recover data instantly.

6. Instant Financial Monitoring

A prominent benefit of cloud accounting is real-time financial monitoring. With online accounting, CPAs and accounting firms can access updated financial information of their clients instantly, which helps make informed decisions. It also aids accounting firms in improvising their plan and strategy quickly based on current trends.

7. Automation of Mundane Tasks

Cloud accounting helps automate mundane tasks such as data entry, payroll, invoicing, and reconciliation tasks. The automated feature helps reduce manual errors, lessens the time to complete tasks, and increases the efficiency of the accounting firm throughout.

8. Promotes Paper-Less (Eco-Friendly) World

Traditional accounting involved immense use of paper- and lots of it. However, with cloud accounting software, manual, and paper recording of data has become obsolete across accounting firms. From sending electronic invoices to using emails with attachments, online accounting has lessened the use of paper, which has greatly reduced environmental impact.

 

Final Thoughts

Today, the dynamism of the accounting arena makes the adoption of cloud accounting a necessity that cannot be overlooked. From automating mundane tasks, and improving efficiency, to reducing manual efforts, online accounting has made life easier for CPAs and accounting firms, thus, accelerating growth throughout.

We at Infinity Globus understand the importance of efficient accounting processes. As such, we can help your client’s business have a smooth transition to cloud accounting, assisting you in delivering the transformative benefits of the technology at hand.