There has been dramatic growth in the public cloud services market and migrating to the cloud is a top priority for many companies. According to Gartner, the market would reach over $266 billion in 2020. Accountants are no different, and they enjoy cloud computing push too. This article rounds out the advantages for accountants and financial professionals for the use of available cloud services.
Cloud computing may be able to help accountants:
- Improve productivity;
- Empower employees;
- Optimize operations;
- Reduce operating costs;
- Backup better;
- Scale effectively;
- Add security.
Now we can discuss these in greater detail.
#1 Improve Productivity
Cloud computing can centralize access. Files are available in real-time on any connected device. Version control problems can be avoided as files are passed between your team members or between you and your clients. The team can always be working on the most recent file, which is instantly updated in the cloud. The files are easily accessible on other devices if needed as well.
#2 Empower Employees
The cloud enables on-demand access. This access can include networks, software, storage applications, and servers. Accountants and financial professionals can work from any location, on the timetable they want, from their own devices. Cloud services have become even more appealing with the widespread adoption of remote work.
#3 Optimize Operations
Before the cloud, an organization might have maintained expensive servers in a closet somewhere on-premises. When a server reached the end of life or could no longer meet an organization’s needs, a replacement was the only option. You had to research, then budget, maintain, and secure the new technology. Cloud computing can provide the most current tools. In addition, the vendor can also be responsible for upgrading, maintaining, and securing the servers. This allows accountants and financial professionals to focus full attention on accounting and financial business matters.
The cloud can also streamline accounting practices. Accountants can gain speed as the computing runs on faster servers with greater bandwidth.
#4 Reduce Operating Costs
Many cloud computing vendors offer the pay-as-you-go services model. Pay-as-you-go means you will only pay according to your level of usage. Also, there is no longer a requirement to pay for maintaining the on-premises server you replaced with cloud services.
Since the cloud service provider leverages economies of scale, you receive enterprise-level tech affordably.
#5 Backup Better
There is a possibility you are backing up business data on-site using external tapes or drives. You may even be contracting with a third-party provider for backups. The cloud vendor will often have redundant backup systems in place to ensure your data. In the event of a flood, fire, or another sort of disaster, the cloud vendor can spin up the backup quickly.
In the meantime, if something disrupts business operations directly, you will be able to access the cloud computing data. So, if your office burns down, you can still get work done off-site.
#6 Scale Effectively
A significant advantage of cloud accounting software is its scalability. This scalability means you will pay for only what you use and can quickly add more if needed. And you can add more without having to invest in new hardware or pay any steep upfront costs.
#7 Add Security
A small accounting firm might have a member of their staff responsible for keeping an eye on IT security. With cloud services, the cloud provider has an entire team of people responsible for this. These industry experts focus on proactive cybersecurity.
Cloud Computing Challenges
Moving to the cloud is not without its challenges. There is a private cloud option, but most small accounting firms will opt for the public cloud option.
This will require a partnership with the cloud solution provider. While this will make work easier, it does decrease the direct control you have over the service provided.
You should know that cloud computing can further extend your business interconnections as well. You could be including customers, employees, vendors, subcontractors for access. So data breaches and account hijackings are a concern as well.
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Digital transformation is helping accountants improve accuracy, increase productivity, and streamline processes. But there are technology challenges—cybersecurity chief among them.
The eBook Addressing the Biggest Technology Issues for Accountants examines the opportunities and shares how to secure IT and reduce risks. Join ITSM Rhino today for free and get your free guide today.