The cloud has completely transformed the business world- outsourcing services to an online platform. In many cases this has freed up valuable time, space and resources, allowing companies to focus on business at hand. One area in which this has been particularly beneficial is within accounting.
Accounting and financial services are integral to the success of any business and moving this over to the cloud is not only more convenient it’s also often a better service overall.
Those who are accustomed to traditional accountancy may be wary of this new approach but there are many advantages to cloud-based accounting.
What is Cloud Based Accounting?
Originally using written records and bookkeeping, accountancy has moved on to computers in recent decades. This has allowed companies to input relevant data and use specialist software to create reports, analyse etc. The shift to the cloud is another step further in modern accountancy. Rather than isolated on office computers, specialist software can be accessed on a remote server in the cloud and is therefore available from any online device. This is a Software as a Service or SAAS model, which is becoming increasingly popular in the outsourcing of many different services.
Accessibility
As already mentioned, one of the major advantages to cloud-based accounting is accessibility. Whereas in the past, access to specialised software was restricted to work-based devices. Therefore, there were limitations placed on businesses, based around the working week. As the cloud is accessible on any device that is connected to the internet, this offers a wealth of freedom for business owners and employees alike, to access finances, anytime, anywhere. This is particularly important in recent years after the rise of remote working.
Security
As the cloud allows for access to finances on any device- it’s understandable that many will have security concerns. However, the SAAS model is often much more secure than standard work-based data management. This is because there is a third party whose main job is to ensure that your company’s data is protected. Furthermore, the cloud in itself is inherently safer when compared with USB sticks, disk drives or even paper documentation.
Up to Date
Another difference between cloud-based software and standard office-based software is the updating process. Computer based software will need to be regularly updated, which can take time away from your working day. You could also be unknowingly using software which is out of date and therefore potentially detrimental to your finances. Accounting software in the cloud is run by a third party, who will ensure it is always fully up to date- guaranteeing you’re getting the best service possible.
Automation
Many cloud-based accountancy services will allow for automated processes- such as bookkeeping, cash collection and bank reconciliation. Automation can have a drastic impact on workloads, saving valuable time and effort. It can also help to boost accuracy as it removes the risk of human error or mistakes. When it comes to taxation, automation can be revolutionary in ensuring that businesses are up to date on deadlines, protecting against penalties or investigation.
Real Time
As many cloud-based accounting software systems are automated, records are updated in real time. Real time insights offer a valuable snapshot of the company. This means businesses can react to changes in real time- for example, reduce or increase prices on products. This is a much more efficient and effective approach compared with the traditional system, in which businesses would be operating on data that was weeks, if not months old.
The experts at Salhan Fund Flow offer a comprehensive cloud-based accountancy service, with options to suit every business. Anyone who is looking for more information on this service can contact Salhan Fund Flow directly and their customers service agents will do everything they can to help.
