By moving bookkeeping operations to the cloud, businesses can enjoy the freedom to access their financial information securely from anywhere.
Accounting software has been around in some form for almost half a century. In recent years, desktop-based solutions have primarily been replaced by web-based software that has further transformed how accounting teams do their jobs. Today, accounting software has matured with the rise of machine learning and other modern innovations that translate large financial data repositories into actionable insights.
Despite these developments, some smaller businesses still rely on ad hoc solutions, such as spreadsheets, to record and track their bookkeeping processes. Others use desktop-based accounting software, which has several significant drawbacks, such as a need for regular software updates and limited access to data. In the age of remote work, these dated solutions have become wholly unsuitable.
What is cloud accounting software?
Cloud computing might seem overused, but the premise is relatively simple. The cloud refers to the internet, and cloud-based software refers to any computing service delivered over the internet in the form of a web app. Cloud software runs on a remote server operated and maintained by the vendor. Unlike desktop software installed on a local computer, cloud software is delivered as a service, typically for a set monthly fee that includes all updates and customer support.
Cloud-based accounting software offers all the same functionality as desktop accounting but with the added benefit of accessibility anywhere. Since there is no desktop application involved besides your web browser, you can access and use the software just as you would any regular website. This allows for unprecedented freedom and flexibility, including the ability to conduct bookkeeping operations from any internet-connected device in any location.
Migrating from desktop-based accounting software presents a giant leap forward in financial management. That upgrade will be even more significant if you currently use spreadsheets to track your finances. Furthermore, today’s solutions build on those of old to automate routine accounting processes, such as running reports, customising invoices, and tracking expenses. This approach offers numerous benefits, which we will look at below:
Readiness for hybrid work environments
As knowledge workers who now rely on computers for the entirety of their day-to-day tasks, there should be nothing stopping accountants from working from home or any other location. Like other knowledge workers, most accountants prefer a flexible work environment since it offers them a better work-life balance which, in turn, can boost morale and productivity. If they can use their own devices, with which they are most familiar, for work, then those advantages may be realised to an even greater extent.
Without cloud accounting software, however, remote work quickly becomes impractical since data cannot easily be shared. Instead, accountants have to export financial data files and send them via email or other channels, which is both inefficient and complex to keep track of. The cloud does away with those limitations by storing all data on a remote server that anyone with the necessary credentials can access, no matter where they are physically located.
Organisational reporting and visibility
Because the cloud eliminates the need to store data locally, it is much easier to maintain total visibility into your data and operations. By contrast, having data stored across employee- and business-owned devices makes it extremely difficult to keep track of. This, in turn, leads to far greater risk and reduced visibility into and control over mission-critical financial operations. Cloud accounting keeps everything stored on a remote server, making it far easier to protect and govern. You will always have access to the financial data you need exactly when you need it.
To track your income and expenses, you can simply log in via a web-based portal to track your income and expenses instead of collating multiple invoices and other files from across devices. Because everything is kept in one place in a single interconnected and integrable system, it is also easier to compile reports. For example, you can create monthly, quarterly, or yearly expense reports at the tap of a button without necessary further manual interaction. Since all the supporting data is there already, that is all it takes.
Enterprise-grade security and compliance
Unsurprisingly, financial data is a top target for cyber attackers. However, you cannot expect to protect what you do not know about adequately. For example, suppose your accounting team has employees storing data across multiple systems and devices. In that case, it can be almost impossible to tell where it is and which security and compliance controls are in place to protect it. Devices can easily get lost or stolen, too, especially in today’s hybrid work environments.
Cloud accounting software bolsters security by making it easier to protect and providing you access to the latest encryption and multifactor authentication technologies. If anyone on your team reports a device they use for work lost or stolen, you can simply revoke access rights to that account or machine. In other words, if all financial data is stored on a centralised cloud server, you only have one system to protect, rather than dozens or even hundreds.
Simplified and customisable invoicing
Traditionally, bookkeeping processes relied primarily on tedious and repetitive manual tasks that were highly susceptible to human error. Manual data entry was a routine part of the job, as was creating invoices or compiling reports. This inevitably meant an increased risk of duplicate or inaccurate data or key data being neglected entirely.
Modern cloud accounting software automates these routine processes to significantly reduce the burden on bookkeeping teams. For example, invoices can be automatically populated by data collected from purchase orders. With custom templates and automated reminders, it is easier than ever to keep track of payments and send professional invoices customised to your brand. Better still, most cloud accounting software is well-optimised for use on the small screen, so your team can even track and manage invoices and other financial documents on the move.
C-FINANCE is an all-in-one accounting solution that helps you stay organised and automate your routine workloads. It is part of the ContinuSys integrated business management system, a software suite that enhances productivity and decision-making. Request your demo today to see how it works.
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