By Nivedita Verma for SKB accounting

What is cloud accounting?

Cloud accounting means storing, editing, and accessing your accounting and bookkeeping data over the internet or ‘in the cloud’ instead of a physical hard drive/computer.

The companies who use cloud accounting can login online to access their data securely through their cloud service provider or software. You can also integrate third party softwares with your core cloud accounting server to further increase your productivity and quality of work if your cloud accounting has an open Application Programming Interface.

What are the benefits of cloud accounting?

Before the cloud, accounting softwares were desktop-based, the application would be installed and run from the hard drive of your office desktop computer. This system needed constant software updates and periodical backing up of all the information.

Online accounting moves the whole accounting process to the cloud and improves it. Here are some perks of cloud accounting~

  1. Seamless collaboration: Cloud based accounting enables you to work with anyone who has access to your cloud software. You can edit documents together, share annotations and upload data, all in real time. This allows you to collaborate seamlessly with a co-worker or a client anytime remotely.
  2. Flexible: With cloud accounting softwares you can access your updated data anytime and anywhere. This allows the flow of information-based wise decisions and data analysis whenever needed. Your accountants can work-from-home or on a vacation if need be without stressing about being in the office to access the desktop.
  3. Scalability: The flexibility of cloud accounting helps the users to meet the growing demands of their business. You will have access to additional features, support, and storage immediately. Desktop-based softwares lack this feature and often fail to support the rapid business pace. If your cloud accounting software has an open API, you can also integrate with third party software
  4. Security: Cloud accounting means that your data is not stored in a physical device, instead it is backed up on one or more servers at a time. Your data is immune to corruption, destruction, or theft as long as you use a secure cloud accounting software.
    Other benefits of cloud accounting are automation of repetitive tasks, cost efficiency, and easy to learn user interface that comes with understandable tutorials.

The future potential of cloud accounting

As more and more businesses are moving towards cloud accounting software, the ones who have still not upgraded will have to catch up to remain competitive. Cloud accounting can never replace the whole job of accountants as some complex issues still need human understanding. The developments in the accounting sector have taken place due to the growth of the AI world and the benefits it provides to enhance the job of accountants. The future of accounting is safe and bright with the right technologies at play.

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