Everyone seems to be talking about “the cloud” these days. One term you may not be familiar with, however, is cloud-based accounting.
What was once strictly Silicon Valley lingo has quickly become mainstream as software companies seek to remain competitive by building cloud-based computing solutions of their own. Accounting software companies have started to build their own cloud-based programs, and they’re starting to revolutionize the way accounting departments work.
Should your company consider upgrading to a cloud-based accounting software? If you’re still unsure, consider some of the following benefits they offer.
1. No Need to Be in the Office
Most of us are now aware of the upsides and downsides of working remotely. While social distancing has made managing company culture a bit more challenging, it has also given many of us an unprecedented level of flexibility in our work and personal lives.
Cloud-based accounting software makes it easy for any team member to access key financial data regardless of whether they’re in the office or working remotely. This convenience will, in the long run, save your company money since you won’t need to budget quite as much as you once did for facility costs.
Even when life eventually returns to some state of normalcy, the benefits of cloud-based accounting will continue to pay dividends. Employees who are traveling for work will not need to concern themselves over whether they remembered to download a crucial report before they left the office. All of the data will remain at their fingertips, helping your company remove human error involved in its day to day operations.
2. Enhanced Security with Cloud-based Accounting
With so many people online at once, the threat of data breaches is more acute than ever before. Your company simply can’t afford to let its guard down.
In a traditional networking system, your company’s IT team likely managed the data security strategy. Unfortunately, very few companies have the resources to invest in comprehensive data security systems, leaving your IT team unprepared for the threats posed by modern hackers. Thankfully, the use of a cloud-based accounting software system helps mitigate some of these threats since the software is typically run from a data center.
In most cases, the data centers are armed with the latest in threat detection and prevention protocols since data security is one of their primary value propositions for potential customers. Their services should offer you a sense of long term security since they will be prepared to handle future developments in data security technology.
3. Lower Fixed Costs
Servers can take up a great deal of space and eventually require maintenance. They’re also expensive.
Luckily, cloud-based systems eliminate all of these concerns. Instead of buying a large piece of hardware, companies rent the software from a provider. This will, of course, save you money since you won’t need to constantly worry about repairing and upgrading servers.
One overlooked benefit is the office space you’ll save by using cloud-based systems. Companies previously needed to dedicate an entire room for servers. Now that there’s no need, you can either use the room for other purposes or renegotiate your lease with the realtor since the space is no longer being used by your company.
4. Efficiencies Through Automation
Generally speaking, if any of employees feel as though a routine task takes up an inordinate amount of their time, it’s likely it can be automated. Cloud-based accounting software can help.
For example, consider a situation in which you have a customer who you bill each month. Previously, a member of your accounting team probably needed to type out the invoice and send it to the client. Later, they would need to ensure the invoice was paid. Fortunately, cloud-based accounting solutions make this no longer necessary.
With most systems, you can create workflows. So, when the time comes each month, the system will send your customer the invoice with the correct amounts and due dates. This will save your accounting team time and allow them to focus on more complex tasks such as identifying areas of cost savings for your company.
5. View Data in Real-Time with Cloud-based Accounting
Technology has, for better or for worse, caused business cycles to move faster than ever. Managers need to be able to quickly react to changing conditions and make adjustments based on incoming data.
Cloud-based accounting can help. From your company bank accounts to inventory and sales figures, cloud-based systems can centralize all of your company’s data sources. Managers can then compare data points to make decisions based on a full and clear picture of the company’s performance, as opposed to using a single or a small number of metrics.
If you believe the previously mentioned benefits of cloud accounting can help make your company more competitive, consider Sage Intacct. As a licensed dealer of Sage Intacct and other Sage products, Timac Business Systems can help you company develop a software solution to meet the needs of the 21st century workplace.
Contact us today for a free consultation with one of our product experts.