5 Cloud Accounting Benefits

  • It’s Cheaper
  • It’s Mobile
  • It’s Collaborative
  • It’s Up To Date
  • It’s Compatible

Cloud accounting is a relatively new technology that is being heavily adopted by businesses of all sizes. It is no surprise why – this tech offers many, many benefits to businesses, non-profits and other organizations alike. Here are five serious advantages to using the cloud for a company’s accounting needs.

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1. It’s Cheaper

Cloud software programs are often cheaper than their traditional desktop-based alternatives. Most operate under a subscription model and the costs add up, but they are generally still more cost-effective, especially compared with the cost of buying full desktop software every few years. Some developers no longer even provide a desktop version and only operate a cloud-based subscription version of their accounting software. Cloud-based options can be an excellent area where businesses look to cut operating costs.

2. It’s Mobile

Nearly all cloud accounting programs have mobile support. This allows accountants, business owners, and sales reps to monitor finances and inventory on the go. Mobile support will become crucial as more businesses switch to using smartphones and tablets for business operations. Mobile support also makes it easier for employees to work from home, which is the desired benefit that businesses can use to not only save money in overhead costs but also as a way of attracting top talent and maintaining employee loyalty.

3. It’s Collaborative

Another major advantage of accounting in the cloud is how collaborative the experience can be. Instead of only one employee having access to their version of the software, cloud-based options allow everyone with permissions to access the company’s profile. This information and access can be useful for non-accountants, including sales reps and department heads. This can also make it easier to detect accounting fraud as well as innocent mistakes. Being able to notice discrepancies as soon as possible prevents data from being incorrect and potentially causing problems. It also makes organization easier because all information is kept in the same place rather than in different programs or physical file folders.

4. It’s Up To Date

Cloud programs are always kept up to date with the latest software releases. This ensures the most cutting-edge security features and updates are present, as well as access to all the new features. It also prevents the need to plan on upgrading software every few years, because cloud-based software is updated by the developer automatically. This also saves businesses time they would have otherwise spent deciding whether or not it was worth it to upgrade to the latest version of their accounting software.

5. It’s Compatible

Accounting in the cloud gives everyone at a company the most accurate picture of the current state of a corporation’s finances. Invoices can be sent automatically, which aids in collecting payments from clients faster. These programs can be linked to corporate bank accounts to always show accurate amounts. This equips business leaders to make better financial decisions. They can also accurately estimate taxes and generate tax forms, making the notoriously confusing tax time much easier on accountants. Many cloud-based accounting software options are also compatible with a number of popular apps, per Entrepreneur, which increases their usefulness to businesses further.

Cloud computing is taking the business world by storm, and it is a smart decision for most businesses to implement in order to stay ahead of the curve and remain competitive. Every business should strongly consider the benefits of using cloud accounting software in their business operations.