Cloud Accounting: Fast, Secure, Accessible & Flexible
Every day, without even realising it, more businesses operate successfully with various cloud-based services. Do you know if this affects your accounting requirements and whether a cloud-based accounting system is superior to traditional on-premises software?
Cloud accounting (also known as online or web-based accounting) software usage began in the early 2000s and differed from more traditional accounting software in that it is hosted on a remote server. All your financial records, income and expenses, assets and liabilities are stored online, but the information is encrypted so that only people with the correct login can view the data. This means your records are securely accessible online anytime from anywhere, on any web browser or mobile app.
6 Benefits of cloud-based accounting systems
The advantages of using this technology are significant for both accounting professionals and their clients.
1. Speed and Efficiency
The automation aspect of cloud accounting systems vastly reduces the time required to enter information and process data while also improving the level of accuracy. Many accounting and banking processes are automated, reducing manual tasks, cost and saving time. Cloud accounting systems are updated automatically which further increases convenience, ensures access to the latest software updates and security.
Cloud accounting software is web-based, meaning it is available at all times from any device or via an app. The online accessibility makes it easier for you as a client, while also ensuring accounting staff can obtain your records when required. You will always have access to relevant in-depth financial information to help you make necessary business decisions, rather than requesting it from your accountant.
3. Centralisation of Data
With cloud accounting systems all financial information is synchronised and stored in a single database. Versioning guarantees that only one up-to-date version of a file is available. Sharing and collaborating becomes easier when everyone is looking at the same data, which avoids confusion, leads to greater accuracy, ensures consistency and saves time.
4. Enhanced Security
Keeping your data safe is straightforward with online accounting systems. Storing confidential and sensitive information online may cause some concern, however, it actually improves security. Several levels of security are built into cloud-based systems, including advanced encryption and access control. This ensures only authorised users can log in and access your data. The risk of traditional accounting software is that your data could be irretrievably lost if any IT hardware was stolen, compromised or damaged. Whereas in cloud-based accounting all data is stored online, mitigating the traditional risks as data is regularly backed up and stored securely offsite.
The scalability is another appealing feature. Traditional accounting methods quickly become overwhelming once a business takes off. Cloud-based accounting systems easily scale and adapt to a greater workload enabling you to enjoy an accounting system that can grow and adjust with your changing business needs.
6. Integration Potential
Achieve increased functionality by integrating your cloud-based accounting system with other software and applications. These integrations create an effective network to help your business operate smoothly. Link your software to a bank account to automatically log business transactions; incorporate payroll, CRM and other essential tools including stock inventory, sales reporting, cash flow forecasting and e-commerce for greater efficiency.
Exceed embraces cloud-based accounting
Cloud-based accounting has enabled us to assist clients more effectively and provide excellent service during these challenging times. During the lockdown, web-based accounting systems took on a much higher value, enabling companies and employees to work remotely without significant disruptions. In the midst of these challenging times, we were also able to provide remote accounting, tax and auditing services to all our clients, see here.
At Exceed, we’ve embraced the evolving technology that is cloud-based accounting systems, enabling us to be even better prepared for the future. Contact us to learn more about our offerings and how they can benefit your business.