Building a Sustainable Firm with Cloud Accounting

In recent years, entities from all industries have started to make active efforts to make sure their company's operations reduce their carbon footprint and align with sustainable practices. This recent shift in the global economy, wherein companies are now more conscious of the effects their operations have on the environment, their locality and society in general, highlights the fact that in the end, we are all part of one community. 
 
In this respect, the accounting industry is no exception. Accounting firms and financial institutions such as banks and wealth management firms have begun to pivot around their practices, delivering finance and accounting services while operating in ways that reflect environmental responsibility.  

This practice not only positions accounting firms as a conscious service provider which attracts clients, investors and potential partners who are looking to do business with a sustainable company but also paves the way for the accounting firm to adopt relevant, environmental and economical practices that helps cut-cost, stay on top of the latest in technology and build sustainable practices that helps with operational longevity.  
 
The first step accounting firms can take towards sustainability? Adopting a paperless system by shifting to cloud-based accounting software. This digital transformation helps usher the firm into the era of evolving technology which allows them to streamline their operations, optimize practices, reduce waste, and be on top of the current market's best accounting practices.  

Before we go into paperless accounting and the role that cloud-based accounting software plays, however, it's important to know the systematic strides that companies are making to become more sustainable.  

 
Understanding The Environmental, Social and Governance (ESG) Framework 

What is ESG? 

The ESG framework, a term coined by the United Nations in their "Who Cares Wins" report back in 2004, is a set of standards used to evaluate the entity's impact on its people, the community it operates in and the environment in general.  

The framework assesses one's initiatives according to its environmental impact, the effect it has on its employees and society, and its internal governance along with local and global governance. For accounting firms, aligning with the principles set by the ESG framework is not just a strategy to attract and retain clients, employees and investors – it is now slowly becoming a business necessity.  
 
What falls under each aspect of ESG? 

 
Environmental 

 
For entities, environmental factors mean how your operations effect the environment. For example, this could be your company's waste management practices, your carbon emissions, and how you use and allocate your resources.  

With paperless accounting, accounting firms become environmentally-friendly by using cloud-based platforms – reducing the resources used in terms of office space and manpower, improves waste management through the lack of a paper trail and overall lessens your carbon emissions.  
 

Social 

 
For entities, social factors shape how your firm handles your relationships. Relationships with your employees, your clients and the broader community – including the local government. Most of the time, companies with a physical presence and location apply social responsibility by fostering a healthy relationship with their office space lessor, the companies around them and the vendors who supply their raw materials. For accounting firms, being socially responsible can be achieved through a digital-first approach aside from community relations. 
 
A digital-first approach allows your own employees to have a work-life balance as it gives them the flexibility to adopt a hybrid or fully remote work arrangement. It also improves the relationship with both your clients and your vendors as communication can be instantaneous and coupled with proper documentation all done through the cloud.  

 
Governance 

 
Last but not the least, governance refers to an entity's ability to lead responsibly. For accounting firms, this means being able to operate through ethical means – following ethical standards both in your accounting processes and in your technology use while also being able to set up a proper risk management and regulatory compliance management system.  

In this regard, cloud-based accounting systems can help by offering features such as encrypted backups, audit trails, and real-time financial reporting, ultimately helping your firm strengthen your internal controls and helps with your risk management and regulatory compliance efforts while also enhancing your internal governance as your employees have a clearer standard operating procedure (SOP) when it comes to accounting processes. 

Why ESG Alignment Matters for Accounting Firms 

For accounting firms who not only wants to attract and retain clients and top talents but also wants to position themselves as a firm who is adapting with the times and taking on their part in building a more responsible community in this purpose-driven economy, ESG alignment is crucial – and the first step comes with adopting a paperless framework.  

Sustainability Through Cloud Accounting 

If you're an accounting firm who is starting to take active steps to align your current company processes to the ESG framework, utilizing a cloud accounting software or accounting outsourcing services who can help integrate cloud technology into your accounting processes can become your first step. With just one integration to your already existing accounting processes, you can replace outdated and resource-heavy systems with a sustainable alternative.   

• The sustainability advantages of cloud solutions are clear. First, firms dramatically reduce paper waste by digitizing receipts, financial statements, tax forms, and more. Cloud-based document management eliminates your need for physical documents and the space needed to store them. Additionally, this type of document management promotes ownership with your employees as they are the ones who will act as the main point of access when it comes to documents tied to the clients or projects they are working on.   

• Second, adopting cloud accounting software allows you to shift from a fully on-site work arrangement to a hybrid or even remote work arrangement. This reduces your carbon footprint as your daily office operations will reduce significantly while also enhancing your internal governance efforts as you help your employees prioritize work life balance – eliminating daily commutes and the costs of working on-site.   

• Cloud platforms also deliver built-in efficiencies that lead to smarter resource use. Features like automation, real-time updates, and streamlined documentation not only save time and money but also prevent the duplication of effort, allowing you to reallocate your manpower to more value-adding tasks.  
  
  

From an operational standpoint, cloud software is not only cost-saving as it improves security, compliance, and collaboration. Thus, as the demand for sustainable business practices continues to rise, cloud accounting provides a practical foundation for long-term success. 

Benefits of Cloud Accounting  

Here are some of the benefits of using cloud accounting software that ultimately helps your accounting processes as well as enhance your ESG alignment efforts 

Ease of access  

First and foremost, cloud accounting allows every user to reach their company's financial information at any time and from anywhere, as long as there is an internet connection available. With just one device, you can view your cash flow in real-time and manage your accounting records with just a few clicks.  

Flexibility   

Your accounting department can easily customize the software according to your current needs. Cloud accounting providers today offer a wide array of pricing plans, integrations and add-ons to make your experience a seamless and suitable one.  

Operational efficiency  

By utilizing cloud accounting effectively in your services and availing outsourced accounting services from a provider who prioritizes sustainability, you can enhance operational efficiency and elevate your service quality. In addition, with access to real-time data, you can ensure that your records are securely stored in the cloud, leading to improved service levels.  

Cloud Accounting Integrations And Tools  

Now that you know the advantages, we now go to other useful functionalities, including the integrations and add-ons of cloud accounting software.    

CRM Integrations  

When CRM (Customer Relationship Management) solutions are integrated with a cloud accounting platform, invoicing, financial records management and billing processes are streamlined. Doing this gives you a more holistic view of where and how revenue and specific sales activities align as well.   

Analytics solutions  

If you want a deeper understanding of your financial health, make sure to go with accounting software that provides financial insights into your business’ performance.    

Read: Role of Cloud Accounting in Strategic Business Financial Management    

Payroll management  

For companies with employees, a salary management tool is an essential ally that can help you, especially during payroll. The primary functions of this system are the calculation of wages, computation of taxes, and deduction of necessary fees, among others helping to improve efficiency and accuracy with your people's payout. 

Best Online Cloud Accounting Software For Your Firm 

Having a hard time choosing the cloud accounting platform for your firm? Here's a snapshot of some top choices to help streamline your financial management.  

Xero 

Xero is a user-friendly tool that scales with your business. It's also known for its rich feature set, including the addition of advanced analytics capabilities through the Analytics Plus offer, aimed at enhancing your business insights and decision-making processes.   

In addition, Xero also caters to the needs of both small startups and larger enterprises. For more details on pricing and plan inclusions, you may check out this article.   

QuickBooks 

QuickBooks is known for its all-around financial management capabilities, from tracking sales to managing payroll.   

With its ability to organize finances in one place, this software simplifies accounting tasks and removes the need for manpower allocation towards time consuming tasks, which means you can focus more on running your business and less on number-crunching.  

To know more about the pricing and inclusion on its plan, you may check out their site.  

Read Next: 7 Key Difference of Traditional Accounting and Cloud Accounting  

FreshBooks

FreshBooks is an excellent choice for those seeking ease of use and superior support to simplify their accounting process. FreshBooks also excels in offering time-saving features such as invoicing, expense tracking, and financial reporting, designed to automate and simplify the day-to-day accounting tasks. 

For more details on the pricing and plan inclusion, check their pricing plan here.   

Sage 50 

Sage 50 caters specifically to those managing more complex finances and offers specialized solutions based on your business needs. To know more details on its pricing and the benefits included in the plans, check out their site.  

Embracing Sustainability for Your Accounting Firm 

While adopting cloud accounting software is a significant first step, it is important to note that true sustainability goes beyond reducing your paper use. A sustainable firm is a firm that adopts the ESG framework into every level of your operations. This means taking the time to step back and evaluate your day-to-day decisions and your daily operations and their impact on the planet, your people, your local community and the economy and adjusting your systems to reflect sustainable practices.  
 

If you're looking for your next steps, energy use may just be your next consideration. Running on-site servers and maintaining large office spaces can be energy intensive – using energy that depletes our non-renewable resources.  

Alongside energy use, you can also work on making sure your employees are aligned with your goal to become a conscious employee. Employees value working for companies with a clear sense of purpose. Clients increasingly prefer partners who operate responsibly and transparently. Publicly committing to green practices and ESG compliance can set your firm apart in a competitive marketplace. 

Overall, it is important to understand that sustainability is not a one-off project – in fact, it's a continuous process that will require numerous amendments and changes as the problems the world faces take on various forms.  

As your firm evolves, your strategies should not only focus on being able to provide quality finance and accounting support but to also be able to contribute positively to the world, building a legacy that benefits both your bottom line and the broader community. 

The Bottom Line  

As your firm grows, your tools should grow too. Choosing the right cloud accounting software and a reliable accounting outsourcing support means you’ll be better at managing your finances, keeping up with taxes, and overall enhancing your ESG efforts. 

The right software can also give you important insights into how your business is doing financially. Each of these options has its own benefits, depending on what your business needs, ensuring you can keep up with your finances as your business gets bigger.  

Looking for a trusted cloud accounting partner?  

Consider D&V Philippines. Our team of experienced certified public accountants (CPA) is equipped with broad accounting expertise and proficiency in advanced cloud software.  

Schedule a free consultation with us today and take the first step toward smarter financial management. You can also download our whitepaper Outsourcing: How to Make it Work today and see how we can help you transition to a paperless office. 

This article was first published on 05 August 2014 and updated on 26 August 2025. Edited by: Aly Tagamolila