If you’ve been in business for any length of time, you’ve heard about cloud computing. It’s a way for companies to access on-demand software applications and data storage availability.
The vendor you sign on with does the heavy lifting by hosting the solutions on their servers, keeping software up to date, regularly backing up data, and providing support as needed. Your business only needs computers, browsers, and internet access to use the cloud-based reporting software.
One option if you’re looking to get started in the cloud is accounting software. Cloud accounting software applications streamline the accounting process, facilitate error-free transactions between businesses and customers, and save time by automating processes so that you can connect and prepare data for financial statements, reports, and presentations, all in one spot.
According to one source, the global accounting software market is expected to climb to $45.3 billion by 2028, rising at a compound annual growth rate of 19.6% from 2022 to 2028. ReportLinker adds that the growing need for innovative and automated accounting software — not to mention the increasing use of cloud options — is boosting demand for accounting tools.
Finding a cloud-based software application makes sense if your business needs accounting software. And if you currently have a non-cloud accounting application, it pays to consider the benefits of switching over to cloud accounting software as you can bring disparate ERPs, GLs, and programs together under one platform to connect them all.
Consider these five reasons why a cloud accounting application is the best bet for your company.
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More Cost-Effective
Choosing a cloud-based accounting application over a premises-based accounting application means you’ll move your books online and access them through an internet browser. You’ll pay for the cloud accounting tool via a subscription for a discount compared to paying a licensing fee for the type of accounting software you need to download onto your business computers. Cloud-based reporting solutions like Workiva can assist in connecting directly to your data sources–both in the cloud and on premise. Data you can trace is data you can trust.
Going to the cloud means there’s no software to buy and physically install. You’ll also find that it’s cheaper to roll out and deploy cloud applications to multiple locations than it is to do the same thing with premises-based accounting software.
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Repetitive Tasks Automated
Cloud accounting solutions automate many banking and accounting processes, making CCAR, DFAST, RRP, or CECL reporting more streamlined so your staff won’t have to spend large chunks of their workday doing repetitive tasks manually. Your workers won’t have to input transactions, create invoices, and produce accounts receivable and payable manually since the cloud-based solution will automate things. The Workiva platform automates tedious, manual stuff like gathering data, updating numbers and narratives, assigning tasks, managing approvals, and more, making delivering insights to your reports even faster. You can spend less hours scrambling, and more time strategizing. Do you need a solution that can automatically tally taxes and discounts? Finding the right cloud accounting software will help.
A cloud accounting solution can also simplify the ESG reporting process and compliance complexities with transparency and automation. These benefits are not just nice to have — they’re must-haves in today’s business environment. And getting the right cloud accounting solution will ensure you get the critical reporting and compliance features you need. With cloud-based reporting software like Workiva, you won’t have any issues when it comes to SOX testing because control owners can update their own narrative, integrate risk assessments, evidence management, and push-button reporting to make it easy.
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Software Stays Up to Date
When using cloud accounting software, you won’t have to worry about whether or not the data you’re using is up to date. The cloud service provider you sign on with will provide automatic updates, so you won’t have to worry about inaccurate information on accounting regulations, policy changes and updates to tax rates. If you have to do updates manually, things can slip between the cracks. That can lead to serious problems. Using the cloud means your entire team will always have access to the latest version of your files.
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Data Security
Cloud service providers employ the highest levels of security, such as access control, encryption, and industry-specific compliance to protect their cloud customers. This will prevent your sensitive data from falling into the wrong hands. Protecting customer data isn’t just about safeguarding your corporate reputation. It’s also about avoiding potential regulatory penalties for inadequate data protection.
One of the ways your cloud accounting data will be protected is by regular automatic backups and specific encryption settings. If workers lose their computers or laptops, that doesn’t mean your data will fall into the wrong hands. The data will still be safe since it’ll be stored on the cloud service provider’s servers.
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Accurate Data
Using cloud accounting software means higher accuracy since human error will be eliminated — mapping your accounts from multiple systems, entities, or ledgers to a single spreadsheet so everything comes together cleanly—and automatically so that your accounting team always utilizes clean data to assemble monthly and quarterly financial statements.. Your cloud solution can better your process by automatically applying taxes, managing the reconciliation process, and more. When automating processes and eliminating human-error situations, your staff won’t waste valuable time and can simplify the monthly financial statement grind to automate tedious tasks and let the real work begin.
There are many advantages that come with using cloud accounting software for your business. Whether you need a single solution or way to unite your financial reporting, GRC, and ESG, there’s only one offering that gives you the power to handle it all: Workiva. While the choice of using cloud-based or premises-based is up to you, chances are that your business will be better off with a cloud accounting solution from a service provider you can trust.
Interesting Related Article: “The Role of Accounting in Business“
