Information is valuable. It is an asset for all business owners.
The emerging platform on which consumers and businesses access information and at the same time share and exchange the information is the cloud.
Cloud technology is rapidly growing and it has become something that a business cannot do without.
What is Cloud Accounting?
The word itself is no longer new to many of us, we all use the facility of the cloud on a daily basis through using services like online banking, social networks, and so much more, some we do not even realize it.
Cloud accounting basically refers to performing accounting tasks, like managing and balancing the books, using software that resides in the cloud and is often delivered in an as-a-service mode.
It is accessed via the internet.
Accountants can manage accounts payable, accounts receivable, and the general ledger quickly and conveniently with cloud accounting.
Just like other cloud-based management software, cloud accounting software runs on a cloud provider’s platform rather than on a local hard drive or server.
The users access the tools they need through the internet.
This brings accounting to a whole new level!
This means that employees as well as third-party accountants do not have to go to the office anymore but they can easily access information from any location and they can now understand the financial standing of their business.
As of 2019, nearly 60% of U.S. companies used cloud-based management software to manage finance and accounting.
Around 22% of businesses are still not migrating to cloud accounting but the numbers expectedly will rise.
How does Cloud Accounting work?
First, nothing is possible without the internet.
This is the primary tool that links everything together.
By using an internet service connection, information stored in the cloud storage enables users to access information as well as download data on any device, such as tablets, laptops, or smartphones.
With cloud storage, the accountants and users who have access are able to read through financial statements and edit documents in collaboration with other users at the same time, in real-time.
The end users located in various locations have access to the same data located in the cloud.
Accounting is now made easy through cloud-based management software.
The good news is that with cloud accounting services this good, businesses need not buy the whole accounting infrastructure system.
They can maximize their opportunity to access anything from apps to storage through a cloud service provider.
This is the one benefit of using cloud accounting, wherein business owners can save more and avoid the higher cost of installation of certain IT infrastructure.
They can simply choose the service providing vendor, and just pay for the specific service they need.
What makes cloud accounting such a game-changer?
1. Pay-as-you-use
Cloud accounting totally changes everything.
The service it brings to the table is relevant, quick, convenient, and most of all efficient.
And it is cost-effective too! It is usually available when needed and users buy it as a pay-as-you-use or it can be subscribed to monthly or yearly.
It’s as simple as buying electricity, and subscribing to monthly broadband services from a utility or a service provider.
Some cloud accounting providers offer free demos to entice potential clients.
2. Provided and Managed
Simple. It is provided by a reliable vendor.
The service is pre-managed. When you use the service provided by a third-party vendor, they manage everything on your behalf.
Also, there is no need to worry about virus attacks that might affect your computer or about backing up the files you create.
Cloud-based management software keeps all intact and safe.
You no longer need to have to worry about how the service is provided to you.
Just concentrate on your accounting job and leave the safety and maintenance task to the cloud accounting provider.
3. Cheaper
The setting up and installation of cloud accounting software is way cheaper than having to implement the whole on-premise or on-network IT infrastructure.
4. Growth of Applications and Scalability
You are not just limited to doing cloud accounting tasks.
It takes you to a whole new level of improving every aspect of your business from inventory management, accounting, report generation, and even labor management.
5. Environment Friendly and Go Green
There is not much paper trail, everything is in the cloud, so paper cost is minimal.
Virtual services are readily available as opposed to physical hardware and services.
You reduce paper and printing waste.
There is energy efficiency.
Thus, it has a very important role in the future calls to go green.
6. Public or Private
We have complete control over our computer systems and have total responsibility over these tools.
Cloud accounting is the same.
We can make it as private as possible and grant access only to the authorized ones.
Or we can make it accessible to the public if need be.
Cloud accounting service is here to stay because of the positive impact it provides on businesses.
Cloud accounting is definitely a game-changer! And if you are searching for one, EasyFS has you covered.
EasyFS is a Software-as-a-service (SAAS) sales, inventory and Accounting system designed for Micro, Small and Medium (MSME) Enterprises.
For a free trial, contact: https://human-incubator.com/easy-fis/
