What Is Cloud Accounting and Why Should I Use It?

The cloud has changed the way we conduct our lives, both personal and professional. You may not even think about how often you use the cloud on a daily basis, whether it is through social media apps, mobile banking, or checking email. 

Many businesses continue to use more traditional accounting systems. Yet, cloud accounting continues to revolutionize the way the profession is done, and offers benefits for ease of use, security, and your bottom line.

What Is Cloud Accounting?

Gone are the days you are tied down to a computer to access all the information you need. With cloud accounting, all of the books are kept online. The cloud acts as a remote server that stores your data and requires a login to gain access to it. 

When you subscribe to an online accounting software, all of your books are moved to the cloud where you can update and manage your data. You can then login to the cloud from any computer or mobile device.

Disadvantages Of More Traditional Methods

If you have been using an accounting software tied to a single device, you are aware of its challenges. For one, your data is stored often on a single computer. This means you must have the computer with you to access the data, and if you do want to move it using a USB drive or email, the data is no longer as secure. 

Because of the way it’s stored, it makes collaboration difficult. There is no simple way to share information back and forth.

Finally, the updates and backups are inefficient and expensive. You want to make sure you are using the most up-to-date software for your team, but these updates are time-consuming and, unlike the cloud, cost money. 

Benefits of Cloud Accounting

Cloud accounting has worked to solve these issues, resulting in a much simpler and effective way to store, share, and manage your business’s information.

1. More Accessible With Less Downtime

In our post-pandemic world, the sudden increase in remote work can make being tied to your office even more aggravating. Cloud accounting gives you the ability to access information from any mobile device if you use the app, or through any web browser. By simply logging in, you gain the same access to information you would have through software using a desktop computer. But now, it’s there where and when you need it. 

2. Enhanced Security

Due to its remote accessibility, if your laptop is stolen, if your desktop is destroyed due to a natural disaster, or if you simply forget to backup your data at the end of a work day, your data remains secure, and there is no resulting loss of time or productivity. All of your accounts and data are consistently saved and backed up automatically

In cloud accounting, the data lives on remote servers that are highly secure and encrypted. You are able to control who can access the data.

3. Allows for More Collaboration

Prior to cloud accounting, to share data and collaborate with your co-workers, you needed to either work on the same computer, or share a USB drive, which risks data security. By simply allowing your co-worker permission to access the data, using their own passwords, you can work on one project simultaneously.

4. Improves Accuracy

Managing errors in the past was largely dependent on your own ability to notice them. Cloud accounting uses technology that has been thoroughly tested to automate tasks and detect errors during the processing phase. 

Because this data is accessible at all times, you are also more likely to realize errors immediately and fix them more efficiently. 

These highly beneficial components of cloud accounting software maximize efficiency of all of your employees so you have the time and the availability of information to make important decisions for growing your business. Reach out to Executive Financial Partners for a free consultation if you think your business is ready for cloud accounting software.

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