The Many Ways Cloud-Based Accounting Systems Are Benefiting Accountants and Businesses

Lorge Blog

Cloud-based platforms make software and data accessible online at any time and from anywhere. Businesses and accountants are no longer limited by their access to physical files and central hard drives. Those traditional accounting systems are constrained by the software and hardware accessible to them, whereas cloud-based accounting software is available to anyone who has their smartphone or a laptop on them. No more bouncing individual pieces of data from place to place and working on single desktops.

Cloud-based accounting systems are far less costly, time-consuming and complicated than the traditional systems they are replacing. Businesses can share financial information and important details with their accountants and accountants can do the same with their clients. The Cloud allows for real-time updates and data sharing that gives multiple users the chance to input and analyse their financial data any time.

The Benefits of Cloud-Based Accounting Tools

The functionality and reliability of a cloud-base accounting tools that offer users the opportunity to integrate different software used in a company’s larger financial structure. A digital ecosystem where every relevant actor involved in the process of financial accounting is able to interface with the system simultaneously. Having that immediate and constant access to financial and customer details is one of the many benefits that cloud-based accounting systems offer that traditional systems do not.

Here are some of the other benefits that cloud accountancy tools provide businesses and accountants.

Accessible any time and anywhere with real-time updates

An old-fashioned, desktop-based accounting system ties anyone using it to the office that houses its local drive. Cloud accounting, on the other hand, gives you access to the key financial figures and accounts you need at any time, from anywhere. The data and records are all stored on a cloud server and are safely encrypted. You simply log in and work from the browser on your phone or laptop.

Cloud accounting companies are constantly making real-time security and software updates while users are able to update, transfer, upload and access their own financial information in real time. Companies and accountants are able to make better-informed decisions thanks to a complete and up-to-date view of their financial position, securely.

World-class security and no time-consuming backups 

Cloud-based software, such as cloud accounting tools, mean that all accounts, records and data is always accessible and, as importantly, safe and backed up online with military-level encryptions. Traditional systems will require users to back up their work and files on a separate drive or even a physical filing system. Work is no longer saved on a physical server but, a more secure digital one.

All of the information stored on cloud-based accounting systems are encrypted at the source and saved to cloud. This means that access is available to anyone but, limited to those you choose. This saves time and money on tedious back-up procedures and limits the risk of electrical or hardware malfunctions of an on-site physical server. So, a business has all of their financial information in one place that everyone with the login details can access wherever they are in the world.

A time- and cost-effective business solution that is customisable

Working online helps reduce IT costs and save time by keeping everyone, who needs to be, connected to the business at all times. Investing in IT hardware and maintenance can be draining for those who use those systems. It is much easier to ask employees and accountants to remember some login details and to use their smartphone or laptop.

Finding the right system that delivers the versatility and functionality businesses need in the modern economy can be difficult. Traditional systems are unable to be customised to suit your particular needs, whereas cloud-based systems allow you to integrate add-ons and new procedures. Approving payments, making transfers and tracking income is more time- and cost-effective than they are now.

Reducing paperwork and improving sustainability

A paperless office would have seemed impossible ten years ago. Traditional accounting tools means paperwork, data-entries and financial admin that can eat into your valuable business time. Online accounting systems reduce business’s reliance on paper with changes like emailing invoices or removing physical receipts. This can help the environment and improve your sustainability by saving thousands of trees and reducing the need for polluting paper factories whilst, more efficiently, staying on top of your finances.

Collaborate, share and communicate more with better information

The cloud helps colleagues collaborate, share information and data amongst each other and communicate with their accounting firms and vice versa. There is no longer a need for back-and-forth emailing of specific numbers, saving information to USB sticks or couriering documents to the office. When everyone is linked into the same system, they are given the access, power and autonomy they need to perform their jobs better and work together more effectively.

Better organisation and control over the financial process

Cloud accountancy is the future of accounting, much like hundreds of other industries. Online accounting services have evolved like any technology to create a more efficient, effective and user-friendly system. Users are able to organise their financial information and control their financial processes in a way that they have never before. Any team, department, accountant or executive can simply log in and search for whatever they need as safely and easily as possible.