Bookkeeping doesn’t have to be a laborious task. If you want to make your business work smarter, using the cloud can help you streamline a range of business-critical operations, accounting among them. A cloud-based accounting system can overcome many of the challenges associated with traditional methods of bookkeeping.
#1. It’s affordable
While accounting software might not be demanding when it comes to hardware resources, on-premises software licenses can be expensive, especially since you have to purchase one for every employee in your accounting department. On top of that, there are additional costs associated with installing, optimizing, patching, and maintaining on-premises software.
By contrast, cloud accounting software has a subscription-based pricing model. This means you get the latest features, patches, and round-the-clock support all for a fixed monthly fee that’s only a fraction of the price of on-premises software.
#2. It’s scalable
Since accounting is a mission-critical operation for any company, it’s imperative that it scales with demand, lest you miss out on lucrative new business opportunities. If you have to buy a new license and a new computer every time you add an extra member to your team, the costs will start piling up steadily as well. Cloud-based accounting software provides you with access to resources on demand at a reasonable price. So whether you have five members in your finance department or 50, cloud accounting software scales with your needs.
#3. It’s secure
Accounting systems are a treasure trove of sensitive information, making them a top target for cyberattackers. An in-house accounting system that’s outdated and poorly maintained is more susceptible to data breaches. While cloud accounting does demand you pay close attention to user access rights, the applications and data will be stored in a secure off-site facility where all the latest technological and administrative procedures are in place to protect it.
#4. It’s portable
Accountancy is a perfect job for the mobile workforce, or at least it can be. There’s no reason for accountants to be chained to the office desk, using outdated software installed on a specific computer. Cloud accounting software runs through a browser, which means it’s accessible on any device with an internet connection, regardless of the network or operating system. That means your employees can take their work home and on the move using their own devices.
#5. It’s accurate
Larger businesses often end up with information silos where the ability to share information between different departments and branches is severely limited. This often leads to more tedious data entry work and all the errors and inconsistencies that come with it.
Cloud accounting software improves accuracy by keeping all financial information in a centralized repository in which you can easily categorize your transactions and eliminate the need for multiple data entry.
#6. It’s simple
Installing software might not sound like a big deal until you realize you have to install the same program on dozens or even hundreds of different machines, all of which need to run supported operating systems. Cloud software runs in a browser, so it doesn’t care what operating system or device you’re using, so long as it’s connected to the internet. There’s no need to install any software or updates.
#7. It’s supported
Desktop business software is gradually being phased out in all but a few niche environments as more companies migrate their administrative operations to the cloud. Often, these systems end up being poorly supported, with users being left to fend for themselves whenever there’s a problem. Cloud solutions are supported by their providers, typically at no additional cost, and response times are usually guaranteed in their service level agreements (SLAs).
#8. It’s compliant
Business leaders have long seen compliance in a rather negative light as they struggle through mountains of red tape. To meet the demands of regulatory bodies like the Securities and Exchange Commission (SEC) and legal requirements like the Sarbanes-Oxley Act of 2002, you need a streamlined way to achieve compliance. Being always up to date and protected by the latest security and privacy measures, cloud accounting helps simplify compliance too.
Wood Dragon IT helps businesses in Connecticut take advantage of cloud technology through expert guidance and documented migration and support plans. Call us today to get started on your journey toward more efficient business.