The use of terms like cloud technology and workflow software instils a sense of fear among accountants. Yet this fear, like most others, can be chalked up to the fear of the unknown. Plainly speaking, cloud technology is basically a server that holds information that can be accessed anytime, anywhere.
The server is completely secure and provides you with the convenience of mobility. If you have or are using programs like Dropbox, Google Drive, or OneDrive than guess what? You are already on the cloud! Small businesses are often challenged by competition and to stay competitive firms choose to upgrade their technology. The best cost-effective choice is to move to cloud-based computing.
Here are reasons why start-ups and small businesses should move to cloud based accounting:
1) Cost Reduction
In cloud technology, where everything is operated online, there is no need for you to install anything. The provider of the cloud service provides regular system updates which reduce system maintenance and administration costs. The added advantage of using the cloud is that it will also save valuable time and energy which will be converted into cost savings for the accountant.
2) Real-time Information
Unlike traditional accounting software which gives access to the single operator, cloud accounting lets multiple users edit data and view real-time information anytime, anywhere.
3) Reliable Security
Most accountants shy away from cloud technology because they feel it won’t be secure. Well, let’s break this fear down practically. If a company wants your business, and continued business, then they in return must provide you with satisfaction and assurance.
This is the primary motivator of a cloud company – to make sure your data is secure and also accessible whenever you want it. As soon as this trust is broken they lose you as a customer forever and any future clients you could have recommended. This is exactly why cloud companies will go above and beyond to ensure your data is secure and available to you.
4) Strong Backup
Using cloud technology provides you with backup service reducing the likelihood of losing important data. You will not be required to take any backup of accounting files on your own drives as these files will be backed up and secured on your cloud system, which you can access from any device.
5) Improved efficiency
Moving to a cloud based accounting system will upsurge employee efficiency as multi–user access will help in easy collaboration within teams based anywhere across the globe. With the world already moving and living in the digital realm, it only makes sense for accountants to also adopt these technologies.