What is Cloud Accounting: Functionality, Features, and Beyond
Thanks to improvements in communication technology in the last few decades, it’s easy to store your data in secure storage that you can only access through cloud technologies. Many successful businesses use cloud accounting services to take their business and operations to the next level.
Cloud accounting gives you the best business data storage complete with top-notch and regularly-updated security features. Plus, it gives you access to customizable tools and increased scalability capabilities in the future.
If you’re planning to use cloud accounting services soon, here’s everything you need to know.
What is Cloud Accounting?
Cloud accounting uses the world’s current Internet connectivity to store business data rather than on a local device, such as a local or in-house data center. These modern accounting systems offer much more features and flexibility than stand-alone accounting software because of their ability to share data across an organization, automate routine tasks, and generate reports with beautifully-made, report-ready data visualizations.
In contrast to popular belief that cloud accounting’s high-tech approach is much more expensive, it’s much more affordable. By sharing expenses with other customers, companies of all sizes can easily afford even enterprise-level cloud accounting services.
5 Benefits of Cloud Accounting
Automation
Cloud accounting software only needs customers to sign up for an account, pay for the package (if any) they want, and access the entire system through any supported browser. This feature defeats traditional accounting software and analog accounting using file cases because it requires no installation and will not occupy physical space. You’ve automatically “installed” the cloud tech without installing anything or leaving a huge footprint on all your computer systems.
In addition, customers have access to automation tools. Automatically import all business transactions using bank accounts and credit cards. Issue repeat invoices, pay subscriptions, and post transactions automatically after a POS verifies and transmits information. These automation features ensure exceptional accounting accuracy than any traditional software or analog accounting can achieve.
Consistent Software Updates
With cloud accounting platforms, all updates automatically go to the customers without any download and installation processes. This is a huge time-saving benefit because it avoids any incompatibility issues. Cloud accounting updates usually include bug fixes to adding new advanced features.
Convenient Tax Compliance
New tax rules, regulations, and requirements are encoded into every new cloud platform update without any installation. With this feature, your in-house accountants can update your existing reports to comply with these new parameters, saving time and resources while improving efficiency.
Paper-Free
Cloud accounting is paper-free, making it a more environmentally friendly process. Being paper-free gives you the ability to work from anywhere at any time as all documents can be accessed from any device. Lastly, you wouldn’t need a company shredder because cloud accounting platforms have their respective built-in data shredders that scramble deleted data and ensure they can’t be recovered by any means.
Persistent Data Security and Backups
Cloud accounting platforms may use simple passwords and two-factor authentications, but they also feature persistent advanced security features, such as client-side data encryption, data encryption in transit, audit trails, and more.
In addition, cloud accounting software has advanced automatic backup features that create copies of your existing data. While it might incur additional fees, more backups allow you to recall any edited data, backtrack any erroneous or flawed data and renew it before submitting or presenting a report.
Is Cloud Accounting Scalable? Explain this in a paragraph and use examples
Cloud accounting is scalable for companies that use cloud accounting software. Enterprise-level cloud accounting platforms can accommodate tens of thousands of transactions, access for hundreds of employees, and beyond.
Scalability is convenient because it decreases overhead costs for startups and small businesses. For example, a company has a small number of clients and are just starting to grow their business. They may only need an invoicing module at this time. However, as they grow, they may need to add more features such as inventory, purchase orders, and sales tax to their cloud accounting software.
Outsource Your Accounting Processes Today
Metropolitan Management Services provides businesses of all levels with its cloud accounting platform rich with excellent time and resource-saving features guaranteed to boost your business’ productivity. Contact us today to get started!
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