5 Ways Cloud Accounting Software is Helping Drive Efficiency for Accountants
Go ahead and keep you head in the clouds because this is one time it might benefit your business!
If you’ve ever wondered whether cloud accounting could be right for your business, read on. With numerous benefits, cloud accounting software not only helps with costs but improves productivity, too - no wonder it has become a necessity for businesses across the globe.
Cloud accounting software, also known as cloud-based accounting software, is a powerful solution that allows companies to access their financial data remotely through the cloud. This means you can securely store and manage your accounting information online without the need for expensive on-premises software. The convenience of cloud accounting software is undeniable—it provides easy access to your files from anywhere, at any time, using any device with an internet connection.
With the added bonus of increased security, flexibility and lower costs, cloud accounting software definitely offers more compared to desktop accounting software.
Keep reading to find out the five ways in which cloud accounting improves efficiency for both accountants and their clients, and decide whether you could benefit from this, too.
What is cloud-based accounting software, again?
Cloud-based accounting software allows users to access their information from any device, at any time - especially useful in a post-pandemic world as so many still work from home plus it is nice to be able to access documents whilst travelling for added convenience.
That being said, the files are safely secured online with no risk of losing them if the hardware gets damaged or if your laptop gets stolen. With cloud-based accounting software, users can easily share data with other users, making collaboration easier.
No time to work on spreadsheets and reports but still want to keep up to date on your finances? Then cloud-based accounting may be perfect for you.
How to tell if cloud accounting is right for your business…
Let’s be honest - nobody wants to spend unnecessary money if there is another, easier way that requires less resources. If you are looking to save funds from investing in expensive hardware and software, cloud accounting is great because it is effective and it does just that - being affordable and convenient to run.
Before you start thinking this sounds too good to be true, it is important to mention that finding a reliable cloud accounting provider can be challenging and you may find that the cloud software may not offer all the features desktop accounting software has.
That all being said, if your business requires basic or advanced functionality then cloud-based software is well suited for you.
What are the benefits of cloud accounting?
Cloud-based accountanting provide many benefits, including:
• Improved Security. We all know that data stored online is safer than data stored on a hard drive and it is also much harder to lose.
• Flexibility. Using cloud accounting software not only gives you complete control over your data but it makes your life easier. You can make changes whenever you like without having to wait for updates.
• Collaboration. It’s quick, easy and efficient to collaborate and share files in real time with colleagues across the world which is really important if you want to be up-to-date and not limited by location.
• Costs. Cloud-based accounting software is cheaper than desktop accounting software. It is because you only pay for what you use.
Here are the 5 ways cloud accounting is helping drive efficiency for accountants and their clients broken down
Improved security
One of the biggest reasons people choose cloud accounting is its enhanced security - after all dealing with sensitive information and private data is stressful enough as it is. Most businesses use desktop software that stores sensitive information on local computers. However, if those computers are lost or stolen, then all your company's financial records could be compromised.
The good news is that you no longer need to worry about losing your data when you use cloud accounting. With cloud-based solutions, your information is stored online, making it much harder for hackers to get hold of them and protected in the case of a stolen or damaged computer.
Increased productivity, scalability and flexibility
We love solutions that increase productivity and make our life just a little bit easier by helping us focus on what really matters (and if you are reading this article, you are probably part of our team). By opting for cloud accounting you avoid the daunting step of having to download and install software on specific computers and instead have all users log into an online portal.
Cloud accounting software offers unparalleled scalability and flexibility compared to its desktop counterparts. This scalability allows businesses to adapt their accounting software to their evolving needs.
As your business grows, you may need to accommodate a larger volume of financial transactions, more users, or additional features. With cloud accounting software, scaling up is a breeze. You can easily upgrade your subscription or adjust your usage plan to meet the growing demands of your business. This eliminates the need for costly hardware upgrades or software installations that can be time-consuming and disruptive.
Similarly, cloud accounting software offers flexibility in terms of usage and access. Multiple users can simultaneously work on the same accounting data, regardless of their physical location. This fosters collaboration and streamlines workflows, enabling your accounting team to work together seamlessly.
Additionally, cloud accounting software is compatible with various devices, including laptops, desktops, tablets, and smartphones. This means you can access your accounting software and financial data on the go, providing you with the flexibility to manage your finances anytime, anywhere.
It makes it easier for workers to access their accounts and make changes when required in a matter of seconds. There is also the added bonus that it saves you money because there is less equipment required, which is our next point.
Lower costs
Using cloud accounting software certainly reduces the overall cost of running a business. This is because most cloud-based services offer subscription plans that allow companies to pay only for their use and this as you suspected is priced much better than most softwares that needs purchasing and installing.
Desktop accounting software usually comes with a one-time purchase price on a basic package and often requires additional fees such as upgrades, training, and maintenance.
Cloud accounting software is renowned for its cost-saving benefits - for instance you don't need to invest in expensive on-premises infrastructure, servers, or software licenses. The software is hosted and maintained by the provider, saving you significant upfront costs. Instead, you typically pay a subscription fee based on your usage and the features you require. This pay-as-you-go model allows businesses to align their accounting software expenses with their actual needs, making it an affordable option for businesses of all sizes.
Furthermore, cloud accounting software eliminates the need for manual software updates. Updates and enhancements are typically rolled out automatically by the provider, ensuring that you always have access to the latest features, bug fixes, and security patches without incurring additional costs.
Cloud accounting software also reduces ongoing maintenance expenses which is a great bonus. You don't have to worry about maintaining servers, upgrading hardware, or troubleshooting technical issues related to your accounting software. The responsibility for infrastructure and software maintenance lies with the cloud provider, freeing up your time and resources to focus on your core business operations.
Moreover, cloud accounting software allows for easy integration with other business systems, such as customer relationship management (CRM) software, enterprise resource planning (ERP) systems, or payroll software. This integration streamlines data flow between different departments and eliminates the need for manual data entry or data reconciliation, saving time and reducing errors.
Easier access to data
Do we not all seek the convenience of accessing files with the touch of a button? One of the biggest advantages of cloud accounting is that it provides easy access to data - as we have recently experienced, our work environment can quickly change and ensuring the whole team can access data from any point in the world can keep you on track.
Cloud accounting software revolutionises the way businesses access and manage their financial data, making it perfect for accessibility and remote work. By storing your accounting information securely in the cloud, you can access it from any device with an internet connection. This means you're no longer tied to a specific computer or location to handle your accounting tasks.
This accessibility is particularly beneficial in today's work environment, where remote work has become more prevalent. Cloud accounting software enables employees to collaborate effectively, regardless of their physical location. Team members can access the same data simultaneously, making it easier to work together on financial reports, budgets, and other critical tasks.
Moreover, cloud accounting software provides added flexibility for business owners and accountants who are frequently on the move. Whether you're attending a client meeting, traveling for business, or working from home, you can conveniently access your accounting software and stay connected to your financial data. This level of accessibility empowers businesses to make timely decisions based on accurate and up-to-date information.
You simply have to log into your cloud account whenever you want to check your finances - simple and efficient. You can also share documents with other team members without sending them via email for added speed and security.
Better integration
Cloud accounting also improves integration between different systems that you are relying on for a smooth working process. For example, some cloud accounting providers integrate with payroll software so that employers can easily manage employee wages and taxes.
With cloud accounting software it’s bread and butter for multiple users to access the same accounting data simultaneously, eliminating version control issues or the need for file sharing via email. This real-time collaboration ensures that everyone is working with the most up-to-date financial information and there are no unnecessary errors. Accountants can collaborate with colleagues, share insights, and work together seamlessly, enhancing productivity and reducing the amount of potential bottlenecks.
Cloud accounting software also offers powerful reporting and analytics capabilities. With intuitive dashboards and customizable reports, you can gain valuable insights into your financial data, enabling you to make informed business decisions. These insights can be easily shared with stakeholders or management, fostering transparency and driving strategic planning.
Furthermore, cloud accounting software simplifies repetitive and time-consuming tasks through automation. Routine processes, such as invoice generation, expense tracking, and bank reconciliations, can be automated, saving valuable time and minimizing manual errors. This automation allows your accounting team to focus on value-added activities, such as financial analysis and strategic planning, improving overall efficiency and productivity.
Other cloud platforms connect to third-party applications such as CRM (customer relationship management) and ERP (enterprise resource planning). Not that desktop software can’t do that, but cloud accounting is literally built for better integration ensuring all your systems work seamlessly and more streamlined.
Is Cloud-Based Accounting Safe?
Yes, we thought you may ask that - cloud accounting software is safe for your business. The only thing that you need to be careful about is that you don't lose control over your data so use a strong password and your account should stay protected.
In fact, one of the primary concerns businesses have when considering cloud-based solutions is data security. However, cloud accounting software offers robust security measures to safeguard your financial information.
Cloud accounting software providers employ advanced security protocols and encryption techniques to protect your data from unauthorized access. This ensures that your sensitive financial data remains safe and secure in the cloud.
Furthermore, cloud accounting software eliminates the risk of data loss due to hardware failures, theft, or natural disasters. With data stored in the cloud, you don't have to worry about losing important financial records if your computer crashes or if physical documents are damaged. Cloud-based solutions typically have redundant data storage systems, ensuring that your data is backed up and recoverable in the event of an unexpected incident.
Cloud accounting software also offers features such as user permissions and access controls, allowing you to control who can view or modify specific financial information. This helps maintain data integrity and confidentiality within your organization.
By leveraging cloud accounting software, businesses can enjoy enhanced security measures that surpass the capabilities of traditional desktop accounting software.
Is Timworks a cloud-based software?
Yes! Timworks is a cloud accounting software product. This means that you can trust your information is always protected and easily accessible on all your devices, making accounting easier and allowing you to have that peace of mind. Better communication with your clients is an added bonus.
Given all the benefits of cloud-based software, and that there are so many great ones to try to improve efficiency, safety and cost-savings, it is a no-brainer to sign up for one or a few to try! Automation, efficiency and ease should not be considered a luxury if you want your accounting business to thrive, and yes - it gets to be fun, too!
Conclusion
In conclusion, cloud accounting software offers a wide range of benefits that can transform your accounting processes and drive financial success. Its accessibility, enhanced security, scalability, flexibility, cost savings, and collaboration capabilities make it an indispensable tool for businesses in today's fast-paced, digital world.
By embracing cloud accounting software, you can streamline your financial operations, improve data accuracy, and make informed business decisions based on real-time insights. Whether you're a small startup or a large corporation, cloud accounting software provides the tools and capabilities necessary to stay ahead in a competitive business landscape.
When considering cloud accounting software for your business, it's important to evaluate different providers based on factors such as data security, reliability, customer support, and scalability. Choose a reputable provider that aligns with your business requirements and offers the features necessary to support your accounting needs.
Embrace the power of cloud accounting software, enhance your efficiency, and unlock the full potential of your financial management. With its numerous benefits, cloud accounting software is not just a trend—it's a transformative tool that can drive your business towards greater success.
