Accounting technology is changing rapidly, with new software and features seemingly emerging all the time. Of these changes, perhaps the most significant has been the rise of cloud accounting.
Cloud accounting has already made a huge difference to the way in which accountants work with their clients, and it will continue to do so as the technology develops.
Whether or not you have embraced this technology for your business, it’s a good idea to understand its implications for the future of your business.
Here’s our guide to the present and future state of cloud accounting, and how you can make sure you don’t get left behind.
What is cloud accounting?
Cloud accounting is a form of automated accounting software that performs tasks online rather than locally on your computer. This means that you can access your data from anywhere and on any device after you’ve securely logged in.
Most of the major accounting software packages now offer the option of cloud accounting alongside desktop installation. In the long run, it’s likely that cloud accounting will replace desktop software altogether.
QuickBooks recently discontinued its desktop option, and competitors are likely to follow suit.
Advantages of cloud accounting
There are many reasons to choose cloud accounting over less sophisticated systems.
For instance, your employees will be able to access your company accounts from anywhere, which makes things particularly more simple if your workforce is remote. They’ll be able to collaborate with one another far more easily, too.
You’ll also be able to rest (or get back to work) assured that all your company data is encrypted and password-protected. This makes it much more safe to store important financial and accounting data on cloud programmes than on company computers, which can be infiltrated or stolen.
At the same time, you’ll save money, as you won’t need to pay someone to maintain your servers or fix errors on your local network, while your computers, freed up from considerable amounts of data, might even start performing better.
What does the future hold for cloud accounting
Cloud accounting is still a young technology, so there’s plenty of scope for it to grow. It’s hard to predict exactly the direction it will take, but there are some things we can predict.
For instance, as more and more businesses sign up for cloud accounting packages, providers will be able to offer greater storage capacity at a lower price, while cloud security will improve.
You can also expect automated processes to become faster and more accurate. Businesses will then be able to take full advantage of this data to make better informed decisions and react quickly to unexpected events.
We may also see smaller companies hire virtual finance officers. This is usually a remote, part time professional who uses cloud software to monitor the financial health of a business and offer advice on financial decisions.
With cloud accounting allowing employees to collaborate from anywhere in the world, companies will also be able to hire better talent rather than being limited to workers in their local area.
The future is bright
Some accountants see these changes as a threat, but we’re not worried.
With cloud accounting taking care of repetitive bookkeeping tasks, our accountants can focus on interpreting the data and offering you with the best possible advice.
We believe the accountants of the future will be valued for their insight as much as for their accuracy, and this is what we do best.
We’ve been quick to embrace cloud accounting technology, and we’d love to put it to use in helping your business to thrive.
Give us a call or send a message to find out more.