To many, cloud accounting, cloud computing, cloud accounting software and whatever term we call the cloud itself and its many related words, may have been overused and a little bit worn out at this point.
For those who are still not familiar with these terms, what exactly is cloud accounting?
To put it simply , cloud accounting refers to the delivery of services through the internet, may it be for the purpose of storage, easy access, data analysis tools, coordination and accounting services that can be viewed anywhere and in real-time.
For people in the finance department, dealing with numbers, monitoring sales, profit and loss, and preparing the financial statement of the business is nothing really new.
In fact it is their everyday task.
But with the deployment of a cloud accounting software, all these become less cumbersome and a bit more fun.
Yes, cloud accounting software can revolutionize the efficiency of everything that accounting is involved in: accessing key financial data from bookkeeping, financial administration, and real time reporting.
The United States alone has already spent $124.6 billion in 2019 for cloud infrastructure while 42% of businesses in Australia are utilizing paid cloud computing to take control of their numerous business processes.
According to Webtribunal.net, the overall average yearly cloud budget of organizations was $2.2 million last 2018 while the global public cloud accounting and cloud computing market is set to exceed $330 billion in 2022.
About a third of companies’ IT budget directly goes to cloud services.
But so much for the statistics and ground-breaking figures.
Let’s learn twelve of the most widely used cloud jargon and how each functions in the world of the cloud.
These are software solutions coming from a third party that usually integrates with the cloud accounting platform which usually helps in automating payments, managing inventory, and making cash flow forecasts.
It is a software program that captures and records all accounting transactions.
An Accounting App may run on just locally managed hardware or perhaps on a bigger scale, through a third party provider with a cloud-based infrastructure.
The app should be able to integrate with a variety of tools in order to track expenses receipts and other business documents.
It can also be made applicable to a variety of platforms like an app for desktops as well as more convenient apps for mobile phones and other devices.
The term that refers to the group of strategically selected accounting apps the organization has chosen to use.
This term simply means Application Programming Interface meaning it is the gateway or the entrance that permits the various software to integrate with one another.
For cloud accounting to work it is imperative to have an API to connect to a third party server.
It is the act of using the open API in the cloud accounting platform to connect or integrate apps with the rest of your account.
Real time information
It represents the current financial status of the company as against the figures that show the past financial position.
This actually means real time reporting and business intelligence being provided for by the dashboard and the reporting applications.
Cloud accounting goes hand in hand with Cloud reporting.
This is the online computer server wherein the financial information is securely stored.
It is basically situated off site away from the company’s premises and safely hosted and guarded by an external or third party specialist company.
The access being granted or the ability for cloud accounting to be accessed from the mobile phone, tablet, or laptop from any point of origin.
The word means that this is the direct integration of your internet banking with the cloud accounting platform being used thus making you easily and quickly access all your banking information.
It is a skillful way of transcending and adapting to innovation which is moving the business over to a digital model, primarily the cloud.
It is the act of predicting business status and cash position based on most current financial information eventually leading to sound business decisions.
This stands for Key Performance Indicators that are mainly used to measure the performance of the business and how it has fared based on the main metrics that were set.
Now you are ready to proceed to the next level of knowing which one cloud accounting software can help your business soar to greater heights in terms of accuracy, convenience, productivity, efficiency, and ease of use. And most of all, in real time.
At Human-Incubator, Inc. (HII), simplifying things through business software solutions is of top priority.
HII’s EasyFIS software for your accounting and financial information system offers everything you will need in cloud computing.
You can check out https://human-incubator.com/ for more detailed information .