Good accounting is a priority for any company. The preparation, monitoring and control of accounts is essential to ensure the good financial health of a business. More and more companies are moving their accounting to the cloud. We tell you why and what the advantages are.
Long gone are the days when companies managed their finances and their accounting manually through record books. Nowadays, the majority of companies carry out their financial exercises through accounting and invoicing software that greatly streamline a previously time-consuming, and imprecise process.
Technology has been a major advantage in the world of finance and accounting. Apart of speeding the process, modern accounting software prevent human mistakes, which, in this case, can have terrible consequences for the business.
Are you an accountant or in charge of your company's finances? Don't miss our exclusive financial analytics guide for CFOs : "The CFO of the future."
Years ago, most companies opted for the on-premise model, considered more secure and easier to control. However, cloud technology has evolved a lot, now more secure, productive and easier to manage than years ago.
Undoubtedly, cost savings in acquisition and maintenance, as well as in the integration and monitoring process, is one of the great advantages of the cloud infrastructure. Basically, the cloud environment allows companies to get a software and only pay for their use, without having to make large initial investments. All issues related to the maintenance and security of the tool are outsourced.
This is why more organizations are migrating their accounting to the cloud, in addition to the greater flexibility and scalability.
Here are the benefits of moving your accounting to the cloud.
Top 10 advantages of migrating your accounting to the cloud
1. Easy and fast implementation
It is no news that legacy infrastructure requires a rather long installation, implementation and adaptation process. In the cloud, however, installation times are shorter and a lower initial investment. One of the major problems of on-premise technologies and infrastructure is their lack of flexibility in terms of interoperability. It is possible that our on-premise accounting software is not compatible with the rest of the platforms we already have. Even more common is that, over time, we may want to upgrade or change our software. In the case of on-premise infrastructure, that may force us to also have to change the rest of our tools due to compatibility and integration issues.
The cloud solves all these problems, streamlining the software acquisition and implementation process.
2. A more secure accounting
As we have already mentioned, nowadays the security systems of cloud services comply with all data security standards. In addition, having financial information in the cloud, where backup copies are made on a recurring basis, prevents the loss of critical information in the event of a failure in the local servers or in the corporate facilities.
3. Accessible accounting
Cloud accounting and invoicing software allow companies to access their financial data from any device and any location. On-premise infrastructure, on the other hand, limits access to information to a single environment, making it difficult to manage accounting remotely or from outside the company.
4. An accounting with no mistakes
Another great advantage of cloud accounting and invoicing software is that it contains control systems that reduce human mistakes. We all make mistakes, and in accounting, mistakes are easy to make, but the consequences can be of great importance. However, cloud software makes it easier for accountants to catch the mistake and correct it before it is too late.
5. Greater speed
The vast majority of accounting software and tools come with automation options. For example, they can automatically transform your accounts into financial reports. On the other hand, many softwares include the option to generate workflows that speed up the work and automate part of the accountants' tasks.
6. Automatic updates
The updating of on-premise software is a highly time-consuming and labor-intensive process. In addition, it involves of several people due to the possibilities of customizing the software to the personal preferences and needs of different workers. However, in the cloud, the software is updated automatically and periodically, so that companies that opt for the cloud environment ensure that they always have the latest version of their accounting and invoicing software.
7. Promotes collaborative work
The cloud environment favors teamwork, allowing several team members to work on the same processes or projects at the same time. In addition, some cloud software provide integrated communication and collaboration spaces where accounting managers can share their processes, workflows and communicate seamlessly.
8. Account visualization
Migrating your accounting to the cloud will allow you to take advantage of the technological and reporting resources of the cloud environment to transform your financial data and monthly accounts into visually attractive reports with performance indicators and KPIs updated in real time. In addition, the reports will be available on any device and you will be able to view them both from your computer and from a mobile device.
9. Lower cost and long-term savings
On-premise software usually has a higher acquisition cost than cloud software and, in the long term has more associated costs. In the short term, apart from the acquisition cost we have to consider the cost of the licenses, as well as the hiring of experts for the installation and integration of the software in the corporate environment. In the long term, the maintenance of on-premise software is the main reason why the cloud ends up being more profitable. The maintenance cost of on-premise software simply does not exist in the cloud.
In short, the cloud environment usually ends up being more economical than on-premise, especially because the cloud is more flexible when it comes to providing resources that promote the prevention of overcosts.
10. A single vision of the truth
Yet, another great advantage of the cloud is system integration. Moving your financial data and accounts to the cloud environment will offer you greater integration options, as well as simultaneous updating of data in all your tools. Basically, the cloud environment is much more efficient in terms of providing a single view of the truth across all software, tools and devices.
Before you go...
If you are interested in the world of accounting and finance, download our free e-book "The CFO of the Future." You will find the keys to transforming your financial data into dynamic and interactive reports that promote conclusions and making better financial decisions.