Cloud Accounting is totally incredible. It is the latest technological evolution in the world of accounting. Maintenance of accounting records and details, entering relevant data, paper work being done manually has been a disastrous work for the accounting professionals for a long period of time. As the technology is growing, a new method of accounting is being used all over the world called as Cloud Accounting. This helps in resolving the above issue. It could be accessed easily with internet and from anywhere around the world. Other than solving the main purpose of record maintenance, the new method of Cloud Accounting, also provides a systematic solution for the preservation of client portal, privacy, document storage, etc. Get to know more about Hitech Cloud hosting solution in this article.
What is Cloud hosting?
It is vital for every business organization to maintain its own servers, databases and websites. On-site maintenance of such devices could not be done as this may incur huge expenses and storage facilities. So, Cloud based hosting helps the organization to resolve this issue. In this process, the company outsources the technological aspects to another company involved in this hosted services and cloud hosting. This special company is designed for this purpose and has all the required resource for facing the needs of the clients. A backup is made on the data stored, which is said to be stored in the cloud. By outsourcing the basic server base, the business organization could bring its technical workload down and focus on the day to day functioning of business.
Combining the technical benefits of cloud with the accounting needs of a company, gives a scope for more relaxed work and focus on the growth of the business. The main ideology behind this system is that hosting the accounting methods in clouds helps you keep your data confidential and accessible only by authorized person. It also increases your revenue by presenting you the options with suitable strategy for investment.
Does switching to cloud affect regular work?
This process doesn’t take a lot of time and could be done within a short span of time. Shifting the working methodology to the hosted software is very simple. Since this turns out to be more advantageous and beneficial for the users, shifting to application hosting has become more flexible and adaptable. This methodology of working helps you identify potential customers and ideal clients.
Benefits of hosting accounting in a Cloud:
Some of the ways in which Cloud Accounting enhances the development of business are:
With the help of Cloud accounting solution, the data could be accessed from anywhere and at any point of time. All that is required is an internet connection. It is ironical that a few clicks on the mouse or taps on your smart-phone could change your entire business flow and growth.
Every businessman would want to know how his money is being used and would be actual monetary requirement of your business. Hosting the accounting software in cloud helps in determining and squeezing out more data in an unsophisticated analytical manner. Cash flow could be scrutinized and controlled accordingly.
Since the data is outsourced to another company, there is a persistent fear of the data being lost or breach of security to access the data. This is taken care of because only upon entering the id and password provided to the users, the system could be used to access the server. Therefore, even the cloud company does not have access to the data outsourced to them. In short, it is password encrypted and no trace of data is left with the company computers.
Amount spent on maintaining the cloud is of minimal cost and paid only up-to the level of usage. There is no need of having separate IT staffs for maintenance of the servers and website onsite. Cost cutting could be down and it could be invested in growing the business of the organization. Therefore, cloud accounting system incurs the cost of only what is required and not more than that.
The headache of the documentation work is reduced to a larger extent by using cloud method of accounting. A basic invoice to the major documents of the business could be stored in the cloud reducing the space required to store documents in the office. Only the needed documents for immediate access could be kept in office.
The manual work is reduced and the activities of the employees and staff members could be monitored from one place thus giving the scope of making necessary modulations to the work done, presenting it in a different way. Reports could be prepared based on the compilation of all the activities done and the need of manual work is reduced.
The need for investing in obtaining new license for software and hardware, expensive equipment for server up-keep is reduced when these activities are outsourced to another company involved in these activities.
Cloud accounting v/s traditional accounting:
There is this wide prevalent question of why should a business shift from traditional method of accounting to Cloud accounting. The above mentioned features and benefits would serve as an answer to the question. A noticeable feature is that, a hosted accounting application gives the benefit of automatic update of financial reports with the final statement, while it has to be updated manually in traditional software for accounting. This ensures fewer defects and mistakes in the calculation and analysis, whereas in traditional accounting software, even when a small error is detected, the entire calculation part from the beginning has to be checked and verified for errors. Transactions could be done in large scale simultaneously and different countries could be dealt with, at the same time.
Therefore, these are some of the reasons why switching to Cloud accounting would help you function your business more actively and efficiently.