7 Reasons Why Accountants Need to Move to the Cloud

The era of digitalization and the COVID pandemic has changed how things function. Every industry is adapting to technological advancement to face the fierce competitors in business to sustain, retain, and expand its customer base. The same goes for the accounting industry as well, witnessing a change in customer expectations owing to the digital era and the easy adaption of cloud accounting services.

Cloud accounting services refer to services offered using software hosted on a third-party server that requires internet connectivity to access. The cloud-based accounting services help the business to manage and control its accounting records from anywhere. They provide virtual services, overcoming location and infrastructure barriers. And if we talk about statistics, 58% of large companies and 64.4% of small companies are using cloud accounting services. According to Flexi, the global market value for cloud accounting will reach $4.25 billion by 2023.

Below are the seven reasons why accountants need the cloud.

1. Paperless accounting:

Paper records are now an outdated way of doing things. Additionally, there are chances of theft, misplacing, or damage affecting the integrity of the business. With cloud-based accounting services, you can automate your various accounting tasks and go paperless, enabling you to access all your financial information at all times with the tip of your finger. No shuffling of files as you get easy access with a few clicks.

2. Real-time access to financial data:

Cloud accounting helps you view financial information at a glance. It helps in easy collaboration over the phone while both parties have exactly the same information. There is no need to share confidential files through emails or USB. Cloud-based accounting software like XERO and QBs helps accountants have live access to update the minute details of their client accounting records.

3. Easy software options:

With the increasing number of transactions, handling accounting for a growing business is a complex task. Cloud-based accounting software makes this enormous task less complicated through a connected app ecosystem empowering you with the right tool to solve a specific problem. It helps in easy integration with expense management tools such as Receipt Bank which automates most of the manual data entry tasks. Likewise, many other accounting tools help to manage payroll, accounts payable, etc, and other accounting tasks. 

4. Security and Backups:

Every accounting firm has to ensure the security of their clients' sensitive financial data, and with an increase in cybercrime, the concern gets bigger. With traditional desktop software, there is always the risk of loss due to theft, or natural or man-made disaster, which is a major concern for small businesses. For this reason, there has been an increase in cloud-based accounting solutions for small businesses. The simple reason is cloud technology is backed by data encryption and dual-way authentication with password protection. It provides the additional security of a network firewall and access filtering process. Besides, it offers a backup of important financial information. 

5. Enhance the accountant-client relationship:

Cloud accounting software helps to build a strong accountant-client relationship as they can share information on financials, tax, and other documents on a single platform that streamlines the whole process and ensure transparency. Remote access helps accountants serve their accountants efficiently as they can assist clients from anywhere at any point. Thus, it helps in enhancing the accountant-client relationship and satisfaction level. 

6. Growth Potential:

For a small business, scalability is important. Business thrives on growth, which is possible if all your resources and tools are capable of rapid expansion.

Cloud-based accounting solutions for small businesses provide flexibility to scale, meet existing requirements, and help to accommodate growth. Cloud accounting software helps to serve customers better. 

7. Save valuable time and money:

A cloud accounting system requires less time and effort than traditional accounting. The updates are automated, so you don’t have to waste time on backups and system updates. It also reduces the paperwork as paperless invoices are directly routed to the right team for approval. It also saves costs in printing, filing, mailing, and storage.