What is Cloud Accounting?
Cloud accounting is a modern approach to business accounting, which uses cloud-based platforms – such as the SunSystems Cloud from Infor – to store, process, and report on financial data. Using a cloud-based system for accounting can bring several benefits and plus-points to the companies that use it, and we’ll look at some of the more important ones next.
Reduced Need for Local Hardware and Software
One of the biggest advantages that cloud-based accounting brings is that it lessens the need for locally-installed hardware and software. As we’ve mentioned already, with cloud accounting, all of your financial data is stored and processed in the cloud, so you don’t need to purchase or maintain a large amount of locally-based I.T. equipment or programming to handle accounting tasks – all you need is a way to access the cloud-based system.
Reduced System Load
Another advantage of cloud-based accounting is that it reduces the load placed on your local system. Both in terms of electrical power and processing power, the more that this system is expected to do, the more power resources it will need to run. When you use traditional accounting software, all of your financial data is stored locally. Especially if you’re a large company, which can put a strain on those resources – however, cloud accounting enables you to outsource the responsibility for supply and demand of those resources.
As a result of the reduced need for local hardware, software and system load, cloud accounting can also save you money on IT costs. When you use traditional accounting software, you need to purchase and maintain your own hardware and software. This can be a significant expense, especially for a large business as- their accounting needs may require features such as high-end processors, to handle the work without impacting system performance. In addition, their I.T. infrastructure may draw more power, increasing utility bills, and there are also overheads such as lighting, heating and/or cooling the spaces where the hardware is installed to consider too. With cloud-based accounting software on the other hand, this is not on-site, and you can ‘outsource’ their provision to your cloud accounting partner.
Cloud accounting also offers greater accessibility to your accounting staff, management, decision-makers, and other key stakeholders. With a cloud-based accounting system, the people that need to can access your financial data from anywhere – all they need is a mobile device with an internet connection. This means they can work from home, or on the go at any other location from which they have a way to get online, and quickly access the financial information needed to make an informed business decision via that device’s web browser or an app – a huge advantage for businesses that have employees who work remotely or who travel frequently.
No Loss of Functionality
Cloud-based accounting systems offer all of the functionality that businesses would typically expect with traditional accounting software. For example, you can track expenses, create invoices, and generate reports and do all of the other tasks that you need to be able to do from a financial management standpoint, but with the added benefit of the aforementioned advantages.
Are there different types of cloud accounting systems?
There are two main types of cloud accounting systems – both offering similar functionality but with a different pricing model. Typically in this area businesses must choose between a subscription-based service and a pay-as-you-go approach.
How do I choose the right cloud accounting system for my business?
When choosing a cloud-based accounting system, you need to consider a number of different factors including your specific needs in terms of accounting and financial management, the budget that you have to work with, the size of your business, and the industry that you operate in. If you need help with this however, don’t worry – TouchstoneFMS will be more than happy to offer reliable advice in this area.
Cloud accounting technology is a modern and efficient response to the problems businesses can face when managing their finances, offering a number of advantages over traditional accounting methods. Our experienced team might even go so far as to call it the future of financial management for businesses, and no matter if you’d like to learn more about what that future might look like, how a cloud-based financial management system can help you succeed, or if you’re ready to make the switch to such a system, contact TouchstoneFMS today.