Why is cloud accounting good for business?
The use of traditional accounting software is typically regarded as a tedious and time-consuming process, which takes the excitement away from core business operations. Thus, in recent years we have seen a major marketplace movement towards cloud-based accounting software in efforts to streamline the accounting processes. A few of the advantages of cloud applications include:
- The cloud is widely considered to be amongst the most secure locations to store data. The business owner has complete control over clearance and access rights, allowing them to control the degree of information available to each user.
- Online accounting systems offer small business owners more functionality than traditional accounting software programs, as owners to have a clear overview of their current financial position.
- As a multi-user platform, cloud-based software encourages greater collaboration and relationship-building with internal team members, vendors, customers, and accountants. This, in turn, generates synergies and efficiencies in the flow of operations.
- Online accounting offers greater flexibility and versatility to business owners as they are able to run their business remotely while gaining access to real-time information from any device.
- Cloud applications also act as an organizational tool to declutter the office space. Cloud applications extract data from different platforms such as bank statements, which reduces time and money spent managing paperwork and manually entering data.
- Cloud-based accounting software are substantially cheaper than server based accounting programs that require substantial server upgrades to accommodate more and more users; and with more users, there are always an exponential amount of IT problems.