WHY CLOUD ACCOUNTING
Cloud accounting software is an online Internet-based solution used for business and accounting. With cloud-based accounting software, work from anywhere with an Internet connection. Cloud accounting operates from both computers and mobile devices. Cloud providers own and maintain offsite distributed servers and provide updates to users. Customers buy a SaaS subscription, spreading accounting software cash costs over time.
What is cloud accounting is another in-depth article. This article addresses why you need the best cloud accounting software for small businesses.
The Power of Cloud Accounting Software
Cloud accounting software uses powerful servers to perform the accounting calculations remotely online. Cloud accounting software encrypts the data as it travels from and to the user’s computer or mobile device. Cloud providers have unlimited server capacity available in a distributed network. They provide as-needed computer resources to software users like you. Several users from your small business can use cloud-based accounting software at the same time.
What are the Benefits of Cloud Accounting?
You need to understand the reasons why cloud computing in the accounting industry is so beneficial:
Hardware, Backups, and Security
- Cloud providers like Amazon’s AWS, Microsoft Azure, and Google Cloud own and maintain the hardware equipment, including servers.
You don’t need to make expensive lump-sum capital expenditures for fixed assets. And you don’t need to hire IT employees or consultants to keep computer equipment functional.
- Cloud providers store your data, so it’s not located on your computer hard drive.
You don’t need to fear the loss of all your data from a hard drive crash or a stolen computer.
- Cloud providers automatically backup your data online.
Don’t worry about forgetting a backup or getting a corrupt backup. Those backup disasters would take extra time and cost you money. You should be storing backup data offsite if you’re not using cloud accounting software. A fire or natural disaster could cause significant problems with no recent backup available.
- Cloud providers have a very high level of expertise to provide excellent security. Cloud accounting software uses identity and access management (IAM) security. Cloud providers create encrypted data on their servers. The data passes from the cloud server through the cloud accounting software API to your computing device. Read Deloitte Consulting LLP's blog article, Three cloud security problems that you can solve today. Of course, you need to establish security on your end too. Business security includes using strong, unique passwords that each user creates. Users change the passwords often.
Updates and Upgrades
- Cloud providers automatically update cloud accounting software. Or they push out update notifications requiring just a few clicks by the user.
Your small business won’t need to use human resources or consultants to update or upgrade each separate computer. That takes time and costs money. It could result in different users being on various updates if they don’t update or buy an upgrade from their software vendor.
Cloud Providers Let You Use Cloud Software at (Almost) Any Time
- Cloud accounting software users have 24-hour access, seven days a week.
That’s unless you have an Internet outage, or the system is temporarily down for maintenance. The cloud provider has redundant servers to minimize being down. Yet, it can be subject to cyber-security issues like denial of service when a hacker orchestrates their attack on the system. Cloud providers have the expertise to recover quickly.
- Many users from your company (up to your SaaS software subscription plan limit) can use cloud accounting software at the same time.
And the system doesn’t become sluggish when too many users are on the network, unlike desktop software systems.
Built-in Collaboration and Communication Capabilities
- Users from every department accessing cloud small business accounting systems communicate in real-time.
Besides internal communications with a communications history log, you can solve customer issues.
Ability to Conduct Business Remotely
- When away from the office, you can conduct business from anywhere.
You can use cloud-based accounting software from your mobile phone, tablet, or computer to conduct business. You need to be in touch with your customers. If there’s a missing item, you can send out a purchase order (PO) to fill the need. Invoice customers from anywhere. That will shorten the billing, accounts receivable, and cash conversion cycle. You can even close the books remotely to stay on schedule and receive and provide needed business information and analysis.
Rent vs. Buy SaaS Billing Model
- With a SaaS (service as a software) subscription, you pay cash over a selected time, on a monthly, quarterly, or annual basis.
SaaS cloud accounting software billing spreads the cost of ownership over time. You can choose a SaaS subscription that matches your company's operations, number of users, and revenue level with the right pricing plan.
We covered the reasons why cloud-based accounting software makes sense in this cloud accounting article. You get affordability, security, maintenance, updates, upgrades, and the ability to work anywhere at any time. You can use your mobile phone, tablet, or computer to run cloud accounting software. To switch your small business accounting system, consider ZarMoney cloud accounting software. Take the first step to get started now on your cloud accounting software journey.