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Cloud Accounting: What You Need to Know

Cloud accounting software is becoming the norm as the go-to for accounting business practices and processes. Traditional, on-site accounting is becoming fairly outdated due to the delay in being able to retrieve data in real time. This makes it difficult for accountants and CFOs to be able to see updated data and minimize errors. Thus, cloud accounting has stepped in and has solved most of those issues for many different types of businesses.

What Is It?
Cloud accounting software is hosted on remote servers meaning that when someone is working with the software, they are working remotely in the cloud and not from their own computer. All data that is sent through is processed and managed in the cloud. This means that accounting data is accessible anywhere on any type of device that has an internet connection. This also means that data and reporting is provided in real-time, rather than having to process reports manually. Balances are always accurate and up to date, and errors are few and far between because anyone accessing the software will always be reviewing the most up to date information.

How Does It Help My Workflow?
The cloud also makes for a much more efficient work environment as cloud accounting software does not require individual installations on each employee’s computers. It creates an environment that allows employees in other departments or remote offices to be able to access the same data (that is available to them pending restrictions) that everyone else is accessing. These types of technologies also allow for the CFO to practice a more robust, strategic role by gaining better insights faster and by setting higher standards. New reporting fields can easily be added, and CFOs can identify new business opportunities. Additionally, system upgrades take minutes, rather than hours or days of updates and refreshes.

Is It Safe?
Accounting in the cloud provides equally secure, or even more secure, methods to store financial data as traditional accounting systems. There are many, many factors that can effect the security of traditional systems such as stolen computers, office closures, weather delays, and more. Accounting departments that use traditional systems are unable to continue working if any of these instances occur because the system is only accessible via the actual computer. With cloud accounting, there is minimal risk of interrupted work or stolen data.

Cloud accounting software will continue to become the driving force when it comes to accounting software. Many articles and research papers cite that CFOs are now requiring cloud-based solutions as they transition out of traditional, outdated accounting systems. It’s expected that we’ll continue to see robust, high-tech solutions with easy implementation and workflow.