Cloud Accounting is totally incredible. It is the latest technological evolution in the world of accounting. Maintenance of accounting records and details, entering relevant data, paperwork being done manually has been a disastrous work for the accounting professionals for a long period of time. As the technology is growing, a new method of accounting is being used all over the world called Cloud Accounting. This helps in resolving the above issue. It could be accessed easily with the internet and from anywhere around the world. Other than solving the main purpose of record maintenance, the new method of Cloud Accounting, also provides a systematic solution for the preservation of client portal, privacy, document storage, etc. Get to know more about Hi-tech Cloud hosting solution in this article.
What is Cloud hosting?
It is vital for every business organization to maintain its own servers, databases, and websites. On-site maintenance of such devices could not be done as this may incur huge expenses and storage facilities. So, Cloud-based hosting helps the organization to resolve this issue. In this process, the company outsources the technological aspects of another company involved in these hosted services and cloud hosting. This special company is designed for this purpose. It has all the required resources for facing the needs of the clients. A backup is made on the data stored, which is said to be stored in the cloud. By outsourcing the basic server base, the business organization could bring its technical workload down and focus on the day to day functioning of the business.
Cloud hosting and accounting
Combining the technical benefits of the cloud with the accounting needs of a company gives scope for more relaxed work and focus on the growth of the business. The main ideology behind this system is that hosting the accounting methods in clouds helps you keep your data confidential and accessible only by authorized persons. It also increases your revenue by presenting you the options with a suitable strategy for investment.
Does switching to the cloud affect regular work?
This process doesn’t take a lot of time and could be done within a short span of time. Shifting the working methodology to the hosted software is very simple. Since this turns out to be more advantageous and beneficial for the users, shifting to application hosting has become more flexible and adaptable. This methodology of working helps you identify potential customers and ideal clients.
Benefits of hosting accounting in a Cloud
Some of the ways in which Cloud Accounting enhances the development of business are:
Get to Access data anywhere, anytime:
With the help of a Cloud accounting solution, the data could be accessed from anywhere and at any point in time. All that is required is an internet connection. It is ironic that a few clicks on the mouse or taps on your smart-phone could change your entire business flow and growth.
Uninterrupted Cash flow:
Every businessman would want to know how his money is being used and would be an actual monetary requirement of your business. Hosting the accounting software in the cloud helps in determining and squeezing out more data in an unsophisticated analytical manner. Cash flow could be scrutinized and controlled accordingly.
Since the data is outsourced to another company, there is a persistent fear of the data being lost. This is taken care of because only upon entering the id and password provided to the users, the system could be used to access the server. Therefore, even the cloud company does not have access to the data outsourced to them. In short, it is password encrypted and no trace of data is left with the company computers.
Spend what is required:
The amount spent on maintaining the cloud is of minimal cost and paid only up to the level of usage. There is no need of having separate IT staff for the maintenance of the servers and website onsite. Cost-cutting could be down and it could be invested in growing the business of the organization. Therefore, the cloud accounting system incurs the cost of only what is required and not more than that.
No more bundled paperwork:
There is quite less headache of the documentation work by using the cloud method of accounting. A basic invoice to the major documents of the business will be in the cloud reducing the space for storing documents in the office. Only the essential documents for immediate access could be kept in the office.
System based monitoring of work:
There is less manual work and you can monitor the activities of the employees and staff members from one place. Thus giving the scope of making necessary modulations to the work, presenting it in a different way. Reports could be prepared based on the compilation of all the activities done and the need for manual work is reduced.
Investment in the maintenance of on-premises maintenance is less:
The need for investing in obtaining a new license for software and hardware, expensive equipment for server upkeep is less if you outsource to another company dealing in these activities.
Cloud accounting v/s traditional accounting:
There is this wide prevalent question of why should a business shift from the traditional method of accounting to Cloud accounting. The above-mentioned features and benefits would serve as an answer to the question. A noticeable feature is that a hosted accounting application gives the benefit of automatic updates of financial reports with the final statement. But it has to be updated manually in traditional software for accounting. This ensures fewer defects and mistakes in calculation and analysis. However, in traditional accounting software, the entire calculation part has to be checked and verified for errors. Transactions are made on a large scale simultaneously and different countries could be dealt with, at the same time. Therefore, these are some of the reasons why switching to Cloud accounting would help you function your business more actively and efficiently.