Benefits of Cloud-Based Accounting
Posted on 2021-11-20
In today’s business setting, cloud-based accounting has become more and more relevant and popular in Fortune 500 companies and even in medium-sized entities. Data which is a crucial factor in running business operations are now sent, processed and stored in the cloud. The cloud is generally used to describe data centers available to many users over the internet. This enables maximum connectivity and one day, may allow companies to keep from maintaining its own physical servers on premise.
Even the traditional desktop-based accounting is now outpaced by a more innovative and adaptive way in processing and handling company data, the age of cloud-based accounting systems. Let us take a look at the benefits of having a cloud-based accounting system.
Highly Advanced Security Measure
Cloud-based accounting technology provides a more secured method in storing financial data than the traditional desktop-based accounting. This eliminates the typical issue innate in desktop-based accounting such as normal wear and tear, loss or physical damage of physical servers. The financial data are stored in the virtual storage, the so-called cloud. The cloud provides state-of-the-art technology in digital security where data are encrypted and multi-factor authentications may be put in place so that only those intended users can access such confidential information. Moreover, the data may also routinely backed-up automatically whether offsite in multiple and secured locations.
Cloud providers like Amazon, Microsoft Azure, Google and the likes also have backup servers in different locations so that when one of its server networks is down, clients can still access their data without delay and disruption to its operations.
Access to Data Anytime and Anywhere
Flexibility is the key difference of cloud-based accounting compared to the traditional desktop-based accounting. The company users can access its data anytime and anywhere in the world as long as the device used is connected to the internet. Management can then monitor remotely the current situation of their company during a business travel or in times of pandemic where physical work in company premise is restricted, hence, employees can still work without interruption.
Access to Accurate and Real-time Information
Every company’s success lies on how the company utilizes its financial data to their advantage in every decision making. However, making economic decisions requires use of accurate and real-time financial data. This is to ensure that the course of action taken by the management is appropriate to the current situation of the company. In cloud-based accounting, all calculations and report summaries are done by the system as long as transactions were entered correctly and inputted on a timely manner. In just one click of your mouse, you can generate accurate and up-to-date reports.
A Paperless Workplace
The use of cloud-based accounting promotes paperless workplace not just cost-effective but also environment friendly. All transactions are done online. You can email invoices directly to your clients, electronic bills and receipts can be saved and attached directly to associated transactions and reports can be saved electronically and sent through email to the decision makers of the company.
Cost-effective
Shifting from desktop-based to cloud-based accounting is also advantageous in terms of cost associated with the former. The latter reduces the IT related costs such as IT hardware and the maintenance thereof, salary for an IT expert and other IT infrastructure needed. These things are all provided by your provider through the cloud. It’s hassle free and time-saving on the part of the company. The company can focus and spend more time in the continuous improvement in every corner of its operations and eventually achieve the optimal solution in the utilization of readily available resources.
Companies who want to adapt cloud-based accounting must also know the cost associated with it. Unlike desktop-based accounting, you only need to subscribe from your cloud provider the virtual machine (i.e. server), storage and cost for data transfer as well as a separate cost for company domain and SSL certificate. The above-mentioned costs can be subscribed on a monthly or yearly basis. Annual subscription is quite cheaper than monthly subscription. In addition, you may be interested to purchase a web-based accounting solution like mcframe GA, an All-in-one Global Accounting and ERP system, to have a complete set-up of cloud-based accounting. Visit our website at www.n-pax.com for more information.
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