With cloud accounting, there is no need to waste time installing programs and downloading updates. Using a cloud accounting system will speed up routine task and helps your employees cover more ground and process more data than ever before. Automating key processes can prevent duplication and other human errors, which saves time, effort and money in getting your financial data up-to-date and accurate.
Traditionally, a small business would spend a lot of money on licensing software or buying packages to install on individual computers. Cloud accounting does away with all of that and provides ‘Software as a Service’. What does it mean is that you no longer need to buy a server, multiple user licenses, pay for yearly updates or upgrades, or maintenance support costs anymore. All these are included in the fixed monthly subscription costs and you are able to access it anywhere 24/7.
It is of no surprise that many businesses owner hesitate switching to cloud accounting due to concern of its security. Contrary to this belief, cloud accounting provider uses additional level of security and encryption measures to keep your data safe and secure. Moreover, data are constantly backed up and stored securely offsite. So even if you lost your computer due to viruses or theft, all of your data will still be intact and accessible online.
When set up correctly, cloud accounting have the ability to scale to meet the demands and requirements of a growing business. With this scalability available, you will not need to worry about needing a new accounting system when the business expand as the cloud accounting is able to adapt and take up all the extra transactions and requirements.
Cloud accounting system allows all of your team to work on one source of data at any given time. This means that everyone is looking at the same information and this provides meaningful discussion and collaboration to chart the business future growth, to tackle existing problems, or to simply having a clear overview of the business financial position in real time.
Cloud adoption is almost inevitable for SMEs - only larger firms can continue to incur costs of hosting and maintaining their own information systems
Quoted by Chartered Institute of Management Accountants