5 Reasons Why Cloud Accounting is Leading the Way
The accounting industry has changed quite a bit over the past decade. Thanks to cloud-based technology, accounting software is now more accessible and affordable for businesses of all sizes. And there is a reason why.
The cloud solution is a businesses saver. Moving to the cloud often doesn’t require an investment as the first step of the journey, whereas expenses of purchasing, managing and maintaining own servers can easily add up.
For the cloud you don’t have to buy additional hardware to be sure your capacity is sufficient, the server simply recognises a need and either give you some extra space right away or with a few clicks of a button.
Cloud-based accounting software is an online subscription-based service you sign up for, and your financial data is located in the cloud. This means there is no software to download, no necessary updates, and no spreadsheets to manage. This also means that whether you are Linux user, Mac user or Windows user, you will experience no compatibility issues with accessing your data.
The software allows you to manage your financial data across all of your devices, and streamline many of your business processes. Let’s look at five reasons cloud-based accounting software continues to lead the way in 2020.
1. Automation
Cloud-based accounting software is going to save you time by taking routine and repetitive tasks off your plate. The software will allow you to automate (not only) the following tasks:
- Paying vendors
- Sending invoices
- Following up on overdue payments
- Reconciling your bank accounts
- And much more
By automating your monthly workflows, you’ll free up more time to focus on the projects that will really move the needle in your business.
2. Accuracy
Anytime you add technology to the mix and decrease human input, you’re going to increase accuracy. And that’s exactly what cloud-based accounting software does.
The software will not only reconcile your accounts in real-time, but it will also check for duplicate entries and other common accounting mistakes. And your transactions are automatically categorized so you can see where your money is going.
You’ll also receive detailed reports on things like business inventory, revenue, and expenses. And since the software is located in the cloud, there are no lengthy updates to complete.
3. Real-Time Access
Cloud-based solutions allow you to access your financial data from any device. And you can access the information from anywhere at any time, which is important with so many people working remotely, setting up own schedules and keeping up efficiency.
As long as you, your partners or your employees have an internet connection and access to your phone or laptop, you can easily access your financial data. This makes it easier to stay on top of your company’s financials and make informed decisions about the business.
4. Safety
Setting up on-site accounting software can be a very risky move. Your data is constantly at risk of being lost, compromised, stolen, or destroyed. A natural disaster, fire, or break-in could pose a huge risk to your sensitive financial data.
Or a hacker attack to less-secure servers. There had been confirmed 2,013 data breaches only during 2019, and the year-by-year comparison is on the rise. More about data breach statistics you can read here.
The risk is simply too great for most businesses, which is why cloud-based software is the way to go. When your financial data is located in the cloud, you never have to worry about backing up your information.
You can access and retrieve your data at any time. And the software is constantly being monitored, so the chances of a data breach are very low.
5. Collaboration
Different employees and departments contribute to your accounting process. Cloud-based software makes it easy for everyone to access the information they need and do their job more effectively.
Instead of one person acting as the gatekeeper and managing it all on their own, accounting can be a collaborative effort. But you still have control over what information different employees can access.
And cloud-based software makes it easier for you to collaborate remotely with your accountant throughout the year.
Bottom Line
Cloud-based software has changed the way accounting and bookkeeping are done. That’s why 58% of large companies rely on cloud-based accounting. So if you haven’t made the switch yet, there’s a good chance your competitors have.
If you’re looking for a way to automate your bookkeeping and reduce redundancies in your business, cloud-based accounting is the way to go. By using software like ZarMoney, you can manage accounts receivable, pay vendors and streamline your accounting process.
And getting started is easy and comes with no obligations -- just sign up for a free trial today.
