Cloud Accounting Solutions: The Future of Financial Control

Cloud computing accounting services are a software-as-a-service (SaaS) version of accounting software that businesses like to use to streamline company accounts. Cloud accounting services run on the service provider’s platform just like any other hosted service. 

Cloud computing accounting software allows businesses to outsource cloud services to third parties or can even aid your existing financial department to cope with the currently popular hybrid workplace model. Cloud accounting also allows businesses to scale their businesses as needed and add new users swiftly whenever the company decides to expand. 

Usually, cloud accounting functions are reserved for the members of the accounting departments in companies with relevant login credentials. The cloud accounting service is usually integrated with company bank accounts and users have dashboards to provide a quick glance at the current financial status of an organization. With automatically updated to the cloud accounting as soon as a transaction is made, you can be assured the numbers you see are accurate. 

Cloud accounting is becoming the standard delivery mode for most enterprise software applications. While cloud security is a consideration for any application, it is particularly important for cloud accounting software. The major areas to consider when evaluating cloud accounting security applications are:

•         Identity Management
•         Application Security
•         Data Security
•         Privacy Protection

This aspect of cloud accounting services is usually backed up by cloud accounting vendors directly. Any cloud accounting vendor should be able to provide satisfactory answers to questions regarding each of these cloud accounting security requirements.

As companies move away from using traditional accounting service providers, cloud accounting solutions are becoming more popular. Let’s explore the main advantages of cloud accounting software  in a company:

Automation

Cloud accounting services are able to automate all financial functions of an institution. Account reconciliation, invoicing services, and ledger maintenance can be automated to streamline your accounting necessities. cloud accounting can also have functions to pay vendors and send invoices if needed.

Accessibility

Since cloud accounting services reside in the ‘cloud’, any authorized personnel with an internet connection can access your cloud accounting service from anywhere. This will allow for team members to report figures from wherever they are without causing unnecessary delays to your accounting department.

Reduce Overhead Expenses

By removing the necessity for on-premise or hosted accounting software, cloud accounting services are able to reduce the investment companies have to make to streamline their accounting functions. With cloud accounting, the barrier to entry is also greatly reduced because of the lowered infrastructure costs.

Data Security

Identity management controls access to the cloud accounting system that holds your data. In some cases, the cloud accounting application provider will supply the identity management, or you can use your own identity management data through single sign-on (SSO) or other user authentication techniques. It is important to maintain appropriate security levels through standards for password length, complexity, and expiration.

Application providers must create secure areas for their clients to store and manage their data. Usually, firewalls are used to prevent unauthorized users from seeing or manipulating data that does not belong to them. Make sure that your cloud accounting provider has the appropriate controls in place to segregate and protect your data. Usually, there are firewall specifications or other protections that vendors can provide to establish that adequate protections are in place.

Data redundancy and backup are just as important in cloud accounting as in any other software environment. Cloud accounting application providers should definitely have adequate backup procedures in place to handle your critical data. Ask for evidence of backup and restore procedures, and test these procedures on a regular basis. Also, it is a good idea to maintain your own backup data in a secure location.

Scalability

As with all other cloud services available, cloud accounting services also enable businesses to start small and scale up as needed. This would reduce the financial burden on smaller businesses and allow them also to enjoy the benefits of having a streamlined financial system. Because of the SaaS aspect of cloud accounting services, companies can also manage the financial activity of multiple locations more rapidly and efficiently and all at a reduced cost. 

Improved Collaboration

Authorized users of your cloud accounting software solution have visibility on financial aspects of the company which creates more transparency within departments. It would be beneficial to allow different department heads access to your cloud accounting services to allow them to gain more information about the current status of things and also predict and forecast future numbers based on current data.

Faster Implementation

Considering the best time to implement cloud accounting software will help you ease implementation from the start. Cloud accounting services are much faster to implement than an on-premise solution. Without the hassle of having to install servers and provide extensive training to your current staff, cloud accounting services can be deployed easily without wasting valuable company resources. Many cloud accounting service vendors have pre-set implementations to streamline how your business handles financial functions. 

Repeatable processes can be streamlined to free up more of your staff’s time with automation and allow them to understand your finances better instead of worrying about manually struggling to keep the books in check.

To compare the best cloud accounting software vendors available currently, consult our cloud accounting software page and explore the different vendors in the market. You will also have the ability to compare competitors to ensure that your business selects the best cloud accounting service provider for your needs.