Cloud Computing hasopened a great number of avenues for multi user and multi location applications. It enables ubiquitous, on-demand access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications and services).
One application that has utilized this new tech is Cloud Accounting. Cloud Accounting is the accessof accounting software where the software (and the data) is stored on the cloud rather than on your computer. This kind of accounting software is similar to traditionalaccounting software that are on-premises, the only difference is theaccounting software is hosted on remote servers, like the SaaS (Software as a Service) model of business. Data is sent to “the cloud,” processed and returned to the user.
Cloud accounting software liberates the accounting firms from the hassles of installing and maintainingaccounting software on individual desktop computers. It can be accessed remotely from any device having Internet and allows both you and your accountant gain full access to the software application and data. The employees in other departments, branch or remote offices can also access the same data and software from their own desktop without personally visiting the office.
Cloud accounting is the next step in the evolution of accounting software. According to International Data Association, 50% of small to employers will be using cloud accounting by the year 2016. Cloud accounting offers a secured, inexpensive and remote access to the accounts of your company or business. Using cloud accounting you can create invoices & pay bills, generate purchase order, track expenses, suppliers’ bills & payments, profits & cash flow, manage taxes, monitor budgets, view company snapshots, dashboards and more.
Cloud accounting takes accounting to an all new level and offers an array of benefits as compared to manual methods. A few of them are listed here –
1) Less Time Consuming -Accounting software on cloud help to save a lot of time consumed in transferring data from one device to another. In fact, you need not wait for going to office to access your company accounts. You can access the accounts from any place and at any time.
2) Automated Calculations and Backup– The calculations are automated in cloud accounting, which also saves a lot of your valuable time and efforts. Also, the cloud accounting automatically backs up all your data making you free from the worries of losing your data by any chance.
3) Remote Access & Automatic Bank Reconciliation – Cloud accounting gives you remote access of the accounting software from any location and device. It makes you work independently of the device you are using or the place you are operating the software from. It also automatically reconciles the bank accounts with the accounts of your company.
4)Automated Data Inputs, Emailing of Invoices &Filing of Tax Returns – Accounting software on cloud automatically takes input and on the basis of those inputs it email the invoices to the relevant email account. Also, cloud accounting eases the hassles of tax filing through its automatic tax returns filing feature.
5) Cost Saving – Cloud accounting helps you to save a lot on the costs. There are no up-front hardware costs you need to pay like office infrastructure cost or relocation costs. Not just this, but cloud accounting also facilitates you to pay the cloud cost monthly.
6) Convenience –The convenience offered by cloud accounting has taken accounting to an all new level. You or the employees of your company can now manage your books via a remote access using multiple devices.
7) Always Up To Date – Cloud accounting offers free automatic software upgrades that keep your accounting software always up to date.
Despite these many benefits, there are some barriers due to which companies are reluctant for its adoption but cloud accounting has answers to all their concerns.
Security Concern – The level of security offered by cloud accounting is at par with the security levels offered by major banks. This vanishes the security concern of companies and keeps their data completely safe.
Vendor Confidence – More than 90% of the cloud computing users say that they are happy and had a great experience using cloud accounting. To find the right vendor for you and you business, you can use the free trials of cloud accounting.
Ease of Use – Most of the people are concerned about the level required to use of cloud accounting. But, cloud accounting is very easy to set up and offers the best services. It also offers free online and telephone support to help you.
Long-Term Contracts – There are no long-term contracts in which you or your company needs to be locked. Most of the service providers offer free trials and monthly payment options.
With cloud accounting, ithas become easier to have real-time visibility and reporting throughout the organization. It has given the traditional accountingan all new level with mobile capabilities and collaboration.