Cloud Software – The 5 Benefits
With an increasing number of large companies using cloud auditing software, cloud accounting is revolutionizing the financial accounting industry. In fact, as of 2020, 58% of large companies will be using cloud accounting software (Accounting Today, 2017). How will cloud accounting benefit you and your firm? Let’s explore the basics.
What is Cloud Accounting?
The concept of cloud computing is simple — it refers to an application or software that stores data in large, highly secure data centers that can be accessed from anywhere. This means your data is secure and routinely backed up so if you’ve been working endlessly on a client’s financial statement and a power outage suddenly occurs, your data can always be retrieved.
Cloud accounting is widely preferred among both clients and accountants as it streamlines long processes for both parties. For example, accountants don’t have to go through the time-consuming process of drafting reports and importing data by hand. Similarly, clients are saved from constant visits with their accountant.
When giving an introduction to what cloud accounting is, it is important to note that cloud accounting software has two different users: the firm that uses the software for bookkeeping, and the client that uses the software for easy viewing of their financial data.
How Cloud Accounting Will Benefit You
Here are four ways cloud accounting will benefit your firm during engagements:
1) Financial data can be accessed remotely
Cloud software stores data on a centralized location on the internet. This means that clients can view data from anywhere, on any device. Using cloud software is easier for accountants who may have clients around the globe that require work at different times of the day.
2) Greater team collaboration
You may want multiple people to have access to your financial data, such as staff, clients, and stakeholders. Because cloud-based accounting software is stored in a central location on the internet, anyone with a password can access the financial information it contains. This makes it easier for individuals to collaborate on engagements.
3) Risk of data loss due to natural disasters is minimized
Cloud accounting allows financial data to be stored on an application rather than on paper. Because of this, financial data is protected from the impacts of natural disasters such as fires and power outages, can be viewed on multiple devices at any time, and can be updated easily.
4) Software updates without client intervention
The party that has proper access rights, such as the software’s distributors, will constantly update the software. Therefore, the accountant using the software will not have to worry about updates.
5) Data is single-sourced
In an accounting firm, many different accountants will be working on the same engagement. Cloud software allows data to be single-sourced, so instead of re-entering data manually, data may be reused throughout the engagement.
Transferring data to cloud may seem unsafe, mainly because of potential hacking threats. However, you may be improving your security with the use of cloud-based accounting software. For example, Caseware Cloud uses a highly sophisticated data encryption system similarly used by banks. In addition, Caseware Cloud has obtained certifications in data protection.
Caseware Cloud is the preferred engagement portal for many business owners, individuals, and accounting firms. You can discover the benefits of using Caseware Cloud here.