Cloud accounting – also known as online accounting – has the same function as any accounting software that you would install in your computer, except it runs on your software provider’s servers using your web browser. The data is then securely processed and stored in “cloud servers” that can be accessed anytime, anywhere, in compatible devices using the internet.
1. Easier Staff-Collaboration – Collaboration Anywhere, anytime
Cloud accounting runs using the online cloud servers used by your software provider to store data so you can access them anytime and anywhere with the help of the internet. This means that you and people you have given permission to access your files/data can easily work on it and get the job done.
2. Faster Invoicing and Payment
This is one of the GREAT benefits of using cloud accounting. Cloud accounting enables you to see a daily dashboard of your financial resources by integrating the money in your bank and your credit transactions. It shows how much you have, where you are spending your money, who owes you money and when you should expect their payment. This enables you to automate your invoicing and accept payment online as well as eliminate the need to follow up overdue invoices.
3. Cost-savings and Environmental Preservation
Cloud accounting software can be used for free or paid on a monthly basis with the price varying with your package and features that you use. Aside from paying for what you only use, cloud accounting enables you to see where you are spending your money. This makes it easier to see what you can eliminate to reduce your costs. Lastly, since you are using cloud accounting, you can reduce costs from paper resources, to time-value savings.
4. Less time in data encoding
Traditional accounting requires hours of data encoding just to view some details in your account. But with the automated data entry of cloud accounting, one can easily view error-free data in just a few clicks, giving you less time in data encoding and more time in serving your clients.
5. Data Accuracy and Security
Since cloud accounting is a computer software, you can have the peace of mind that it use accurate accounting computations to give you results. You just have to ensure that you are encoding the right numbers to generate what you need. In addition to which, your data is treated with security.
Even if your device (e.g. laptop or smartphone) is stolen, no one can access your data without your log-in credentials, compared to storing your data in your hard drive. Aside from which, you can also back-up your data and restrict the access of your staff depending on your discernment. Lastly, cloud servers are treated with encryption to ensure privacy among users. This is the type of security that only cloud accounting can provide.
To know more about cloud accounting and how it can benefit your business, talk to our financial experts at D&V Philippines. You may also download our Cloud Solutions for Business Owners today and see how our experts can help you make the cloud transition seamless.
This article was published 13 February 2015 and edited 01 December 2020.