Global cloud computing spending has reached in the past few decades. A major contributing factor is the pandemic. According to , we experienced unexpected growth in digital technology usage after the pandemic started. In the first two months only, two years’ worth of technology-based transformation occurred. USD 1.3 trillion Microsoft Cloud computing was one of the leading technologies used by businesses during this phase. With the help of cloud accounting, businesses can complete accounting and bookkeeping tasks remotely and reduce security requirements. For these reasons, cloud accounting has become a popular go-to technology for accounting and CPA firms. Let’s understand how. What Is Cloud Accounting? Cloud accounting is a blend of two things: cloud computing and accounting software. While we use accounting software, such as QuickBooks, to achieve automation across several activities, cloud computing gives it a new definition. Every feature of the accounting tool is accessed over an internet connection with the help of the cloud. This makes cloud accounting scalable, feasible, affordable, and secure. Why Should Small Businesses Consider Cloud Accounting? As a small business, you can benefit from the features of cloud computing. From reducing the cost of accounting operations to eliminating security threats, several business processes may be streamlined. Read more to understand how: Convenient Working Think about it, on the cloud, your users can work conveniently. They have the power to access QuickBooks or any other accounting tool from any location. Simply open the partner portal or browser, log in to the cloud network, and access data and apps. As a small business, this means hiring remote employees without thinking about security and remote access. Multi-Access Cloud accounting empowers you to use one file on multiple endpoints. How does this work? With cloud accounting, the entire accounting architecture is on remote servers. This means that your software is accessed from a centralized resource, which can be accessed by every employee in the same manner. So, when two employees open one file at the same time, they both use the same file but a virtual copy. Any changes in the file are real-time, which are reflected in the document almost immediately. With more than one employee accessing the same file at one time, the collaboration feasibility of the business improves. BYOD Functioning In a small business, it is not always possible to upgrade hardware regularly. However, allowing BYOD only means risking business security. For this, large organizations may prepare VPN-enabled laptop units that are safe to access. However, the money and IT hard work that goes behind this task are just too much. As a small business, an easier option is to use cloud accounting and allow BYOD. Since we are already accessing accounting software via the internet, it is safe to open the software on any end device. Affordable Small businesses need to work on a budget to appropriately spend on core activities. Cloud accounting helps you reduce the hardware cost of the business. You don’t require a huge IT team, multiple hardware units, or a security architecture. The cloud provider manages, maintains, and upgrades the hosting, which reduces the money spent on these activities. Secure Cloud hosting provider secures the network of cloud servers with the help of advanced security measures. For example, TLS 1.3 and 256-bit encryption for data transmission and multi-factor authentication for software access. There are many other security measures, including: Intrusion Detection and Prevention End-to-end encryption Multi-factor authentication Access control, software firewalls OS patching and upgrading Physical server security Backup Support Cloud accounting involves regular backups taken and maintained by the cloud service provider. With these regular backups stored in a redundant manner, you are able to recover your data even after a disaster. For instance, a flood destroyed your PCs and you need to start working immediately. In this case, cloud accounting helps you retrieve data from the backup and you can allow BYOD to start working whenever your team is ready. Seamless Support One of the benefits of using cloud accounting is the ability to receive expert support. The cloud provider has IT experts, who help you resolve cloud accounting issues quickly. Whether you need to scale your resources or retrieve your data, this support team is known to offer swift and valuable responses. Scalability Cloud accounting helps you increase your storage and resources when you need them. This means that if you need more storage and resources at the time of the tax season, you can call the provider and receive storage on demand. You don’t need to purchase more hardware or software for the same. When you don’t require this storage, you can also decrease your resources to optimize costing. Questions To Ask When Moving To The Cloud When you are moving to cloud hosting, here are some important questions that you should ask your cloud hosting provider. What type of security structure is used to save cloud servers and data on it? Do you offer on-demand scaling support and IT guidance? How quickly does your support team answer? For how long do I need to wait for cloud deployment to complete? What is the pricing structure? How do you break it down? How will you calculate the monthly charge when I scale and descale? How do you backup my data on several servers? Where are your cloud servers located? Questions that you should evaluate in-house: What are my requirements? What type of storage and resources do I need? Do I need to purchase an accounting software subscription as well? How often do I need to scale? Should I get a customized plan? What is my budget for cloud accounting? How much IT preparedness is there in my workplace? Conclusion Cloud accounting is the way to operate in a digital world. With new and different disruptions every day, cloud accounting creates a safe harbor for small businesses to operate without challenges. It allows remote, scalable, feasible, and secure core operations. Find the right type of provider for your organization and start hosting your accounting software on the cloud.
