Cloud Accounting: What There Is To Know
What Is Cloud Computing?
Today, the impact of globalization, the rise of big data, rapid advances in technology and widespread internet-based applications have all paved way for the emergence of cloud computing. Known as the delivery of on-demand computing services over the internet, on a pay-as-you-go basis, businesses or organizations can be able to rent access to anything from storage space to applications from a cloud service provider. As such, information can be easily accessed through devices like iPads, iPhones, and computers, provided there is a steady internet connection. Gaining a great deal of momentum, cloud computing has accounted for billions in revenue ever since its inception. But what does this mean for the cloud accounting industry?
Accountancy and Cloud Computing
Since the invention of cloud computing, the technology has been used as a real system for everyday business activities. An accountancy practice requires its own internal IT system which especially meets the needs of clients who operate in an array of IT configuration and systems. These clients include those who choose in-house operations as well as those who need to connect to a cloud system. In this case, cloud computing will offer an array of convenient options for them.
The relationship between accounting and cloud computing can also be seen through the following:
Real management accounting
In the past, annual accounts had to be completed without necessarily knowing how a business would perform. However, cloud computing has provided real management accounting whereby businesses can have up to the minute financial information which can be accessed and managed by an accountant. This makes future predictions as far as finances are concerned much easier. Real-time information allows for more informed decisions by business owners. Other factors such as fully integrated ERP systems ensures that accounting aspects of bookkeeping are up to standard.
A cost-effective system of accounting
Cutting down on costs is one of the most significant benefits of cloud computing. Adopting this system reduces capital outlay for serves as well as physical space. The reduction of backup systems and energy bills can also be enjoyed. With this technology at hand, less IT support will be required on the ground as the systems automatically update themselves. Generally, the accounting firm will be able to cut down on costs and put the money that could be used for these practices into good use.
Accounting firms can easily tweak their products and services in the background even without disrupting ongoing work, thus making upgrades much easier.
Secure method of storing financial information
In comparison to traditional accounting software which was more associated with cases of insecurities, cloud computing provides a secure method of information storage. Data in the cloud is encrypted thus leaving no trace of it behind. Backup servers are often found in two or more locations and this ensures information will still be readily available even if one server network goes down.
According to a research study that was conducted on more than 1,000 accounting firms, web-based applications are becoming increasingly popular and accountants are its largest adopters. Cloud computing has eliminated manual activities and has promoted better accounting practices. The future for this technology looks immensely bright and there is no going back.