Cloud computing has reached every segment in our everyday life. Apple Music and Spotify allow us to listen the latest hits anywhere and anytime, files are shared with Google Drive or Dropbox, all enabled by cloud computing.
Cloud computing has also reached the financial sector: many companies have started to offer financial software as a service for small, medium and large enterprises that changed the way of traditional business accounting.
The question is: Why do companies adopt online accounting? Here is a list of benefits of cloud based financial management:
1. Real time information:
With cloud based accounting software like Xero, KashFlow or Intuit, you can always be up to date with your finances. Bank statements are automatically imported from bank accounts allowing users to view the current financial position of a business anytime.
Online accounting software can be accessed anytime, anywhere, from any device given that it has internet connection. Users are not tied to a specific on-site device anymore, they can be anywhere in the world, and - with internet access - up to date finances are just a couple of clicks away. Therefore, cloud based software offer greater flexibility for working remotely, on the go, or from home.
3. Multiple users:
In contrast to the traditional software usually installed to one laptop in the office, data in the cloud can be viewed by many users even at the same time. This makes sharing information a lot more convenient and secure as users’ level of access can also be controlled.
4. Reduced costs:
Small and medium sized businesses often cannot afford to buy expensive on premise softwares. Using cloud accounting, however, spreads the costs as subscription is paid monthly. Moreover, software updates are automatic and have no extra cost.
5. Less fuss about upgrades:
While upgrading on premise softwares could take months and could cost a fortune, cloud applications are updated centrally and automatically free of charge. As a result, all users of the software have the same latest version instantly.
6. Data security:
Although giving business data to a third party and storing it on far away servers may not sound like a solid idea at first, cloud services are possibly more secure than your hard drive.
You don’t have to worry about backups, your data will be always up to date and accessible online anytime from anywhere.
Besides the main features of online accounting software, most providers now offer user friendly mobile apps.