Cloud-based technology is being used more and more in everyday business applications. Cloud-based technology has a lot to offer – it can enhance the way we work and add value through new smart software systems. One of the growing uses for cloud-based technology is accounting. Not only has its use become very popular, it is changing the fundamentals of the accounting industry along the way.
Using the cloud is a world-wide trend and accountants in big and small companies are looking to cloud software to revolutionise the industry. However, with any change, there can be mixed emotions. While some accountants are adapting willingly, other accounting companies have reservations about its application.
To better understand how cloud accounting works, it’s imperative to weigh up the pros and cons of the system. By identifying the benefits, you can see how it’s application will be helpful. It is also good to be sceptical and analyse any negative impacts it may have on your operations.
The Beauty of Cloud Technology
Cloud-based technology is revolutionary in that it allows users to work on tasks from virtually anywhere. Work can be done online from the office, somewhere offsite or anywhere with an internet connection.
Using cloud-based technology for accounting means the typical accounting software can now be accessed in more places. This allows accountants to be more efficient. This allows accountants to travel and access information remotely to work whenever it suits them. Cloud accounting provides more opportunities to get work done in varied locations with up-to-date versions of documents. Communication is heightened, as you can share documents and interact with other users, even if you aren’t close to each other.
Up-to-date, real-time information is game changing with cloud accounting. This reduces errors and problems with old versions of documents or multiple copies of the same report. Moreover, it simplifies and streamlines the reporting processes. Cloud-based software can also communicate with other parts of the business that use the software.
If you are an in-house accountant, you can easily keep track of inventory and product re-ordering. You can also monitor products ordering cost and make sure everything is being charged and paid for properly. Since information is delivered instantaneously, an accountant can spot any errors or problems with the ordering cost of a specific product. They can identify issues with a supplier’s invoice or an internal issue if the ordering cost looks incorrect. Without the cloud, problems like this might only be discovered at the end of a financial period, making it a lot more work for the accountant!
What Should Accountants Be Aware Of?
There are a few cons to identify when it comes to cloud-based accounting. A lot of information that accountants deal with needs to be kept secure so before subscribing to a cloud-based software, accountants should do their research to ensure the software values their clients’ data security and privacy.
Cloud-based software automatically backs up and saves data but just in case, accountants should also ensure there is a method of retrieving backed up data from the software.
Overall, there is an immense amount of potential for cloud-based accounting and with the right measures, it could be a good move for your company.