Cloud Accounting for Your Company: How Does it Work?

Do you want to make your company more successful, grow it to the next and ultimately into a multinational? It is the target of most companies. Running a successful company or enterprise implies that you have to be focused on taking care of customers, growing sales, and improving profitability. You must also be on top of your finances, make informed decisions, and prudently manage cash flows, which requires good accounting. 

This brings us to the big question, “which accounting model should you employ in your company?” This post takes a closer look at cloud accounting to compare it with traditional accounting and demonstrate the benefits to anticipate for using it in your company. 

What is Cloud Accounting?

Cloud accounting is one of the most exciting things to happen in the accounting industry in the recent past. It involves handling accounting tasks, from bookkeeping to balancing accounts, using apps in the cloud.

The accounting software runs on servers located in cloud centres, and accountants only need to have the internet to access to run their operations. This implies that they no longer need to manage their own servers. 

In contrast, traditional accounting software has to be installed on your company computers. Traditional accounting comes with a number of drawbacks, such as limited access to data and regular need for updates. You are also in charge of backup and data security. These drawbacks make using traditional accounting software ineffective, making it crucial for managers and experts to shift to cloud accounting. 

Your company should, therefore, migrate to cloud accounting because it is highly efficient. As we are going to see, the cloud accounting platforms have open APIs that make it easy to connect to your company management system. 

Why Cloud Accounting for Your Company?

Shifting your accounting to the cloud from the desktop can be a huge leap ahead in your financial management. So, how exactly is cloud accounting beneficial? 

24/7 Access from Anywhere on the Planet

With cloud accounting, you get 24/7 access to your business’s financial-related information. This implies that you do not have to travel back to the office to get the accounting software interface and company’s financial information. You could even access the accounting software to continue with financial-related work on weekends, evenings or when away on holiday. 

Real-Time Access to Company’s Financial Information 

When making important decisions, some managers use weekly or monthly reports because their accounts are not up-to-date. This can easily result in poor decision-making. However, you can say goodbye to traditional and historical financial reports by working with cloud accounting apps. 

The advanced cloud accounting apps provide live feeds to your company’s bank account, speed reconciliation and give real-time access to financial information. This provides an accurate view of the company’s financial information for more informed decision-making. Real-time access is one of the reasons why more managers are considering cloud accounting as a crucial component for driving success in their companies.

Enhanced Access to App Ecosystem 

Top cloud accounting apps come with a wide range of APIs that provide access to third-party tools for expanding the core business ecosystem. Some of these include cash flow forecasting apps that make it easy to predict your company’s future financial performance. Others include online invoicing tools and industry-specific project management apps. With these third-party tools, you can: 

• Cut resourcing costs. 
• Save time required to perform specific accounting tasks. 
• Identify and address financial challenges for your company on time. 
• Simplify company analytics and diagnostics on demand.

Guarantees You the Latest Software Version All the Time 

When your accountants log in to the company’s cloud accounting interfaces, you can be sure of one thing: it is the latest version. Therefore, they will not have to waste time checking for or installing updates. They only need to sign in and commence their accounting work. 

The updates are very important because they come with the latest protection against malware targeting your system. At any one moment, the developers of the cloud accounting apps are looking for better ways of keeping users safer. This means that you can have peace of mind when working on company financial records because the data, communication, and entire system have the best protection. 

The cost of Ownership of Low

Unlike traditional accounting, where you have to buy the app and install it on your computer, the reverse is true with cloud. There is no app to buy, install or maintain when using cloud accounting. All that you need is getting access, perhaps through a regular subscription, to be able to access the accounting software for financial calculations and other related activities. 

Because of the reduced cost, cloud accounting apps work excellently not just for large companies but even for small and medium enterprises. If your company is looking for ways of cutting down costs or the traditional financial apps are becoming too expensive to maintain, it is time to shift to cloud accounting. 

Implementation is Pretty Easy 

Many are times when companies are bogged down with complex requirements when targeting to implement new software applications. For example, the traditional accounting apps might not be compatible with the computers running in your company, prompting the need to buy new ones. You might also have to hire a separate IT team to install and maintain the system. However, none of these will be required when working with cloud accounting apps. 

Once you are given access to the software, all the tools will be available for you to start using immediately. As long as you have internet access in your computer, laptop, or tablet, it is possible to sign up for cloud accounting software and start using it in a very short period. The entire process is so simplified, fast, and professional. 

If you want to get it right with the company’s financials, strategic management, and decision-making, it is time to embrace cloud accounting. Remember to only source the cloud accounting from top-rated providers for the best results. At Primasia, we are dedicated to helping your company simplify financial accounting for fast growth and success. Contact us now to discover our offer for the best cloud accounting software and services.