Why you should choose cloud accounting software

7th May 2020
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Firms and internal finance teams are adapting the way they currently operate with cloud accounting services.

According to our recent survey, 38% of fee earning engagements are currently being conducted over a cloud platform, with just over one third (31%) believing it will have a large impact on their working life over the next five years.

Our report ‘UNDERSTANDING TECHNOLOGY ATTITUDES WITHIN UK FINANCE PROFESSIONALS found that 85% of those asked claimed they could collaborate and share documents & information among colleagues within their office easier with cloud technology; with 65% also admitting that the cloud makes sharing information easier with colleagues who work remotely.

Not only is the cloud more convenient and offers many benefits, but myths surrounding the cloud are reducing as more people are becoming familiar with the technology; working with documents and sharing data over the cloud.

Many of those surveyed (53%) are comfortable using the cloud, believing the cloud is more secure than relying on traditional on-site digital storage methods such as hard-drives or filing cabinets containing paper documents.

Cloud accounting technology is becoming more popular, and our report is not the only one to suggest this.

Accountancy Age published an article which suggests 65% of practices have implemented or are planning to implement cloud software sometime in the not too distant future.

There are a number of benefits to your firm or internal accounting team introducing cloud accounting technology (if it’s not already in situ) with just a few outlined below:

Working Remotely – Allowing employees to work remotely is a hot topic on most organisations’ agendas, offering more flexibility to work on the go or whilst at client offices.

A third of those surveyed expressed their upset that they are expected to spend long hours at their office as remote working is not supported by their current systems. Cloud software allows accountants to manage workloads wherever they are, providing they have access to the internet.

The cloud is much more convenient and can reduce hours which are currently lost by employees  travelling to and from meetings.

Accounting collaboration – It’s extremely important for accountants to be able to work collaboratively within their teams and with clients, something the cloud software promotes.

Enabling teams to work simultaneously on documents without the need to be in the same office has made the process of compiling reports and executing accounts more streamlined and reduces the room for errors. 

Again, allowing collaboration between clients and firms eliminates the risk of errors along with simplifying the accounting process. 

Cost effective technology – Regardless of the size of your firm, you always want to find the most cost effective way of working. For a large firm, managing multiple on-site servers can be demanding. Similarly, small firms may not have the budget to invest in physical servers which they don’t have the manpower to manage and upkeep.

Cloud is a solution for the aforementioned problems, the physical demand is significantly reduced and there are no servers to maintain, it can also be scaled up or down dependent on demand and requirements at any particular time. In terms of costs, you just pay for what you use, rather than investing more than you may need.

Keeping your data safe – It’s something we’ve already seen within our research, but cloud is becoming more relied upon to store sensitive information. It offers vigorous encryption security, limiting the access points cyber criminals would target whilst being extremely secure for disaster recovery.

Relying on hard drives to store information can be catastrophic, if the drive becomes corrupted or damaged, then the physical server is potentially at risk. Not to mention, if any paper documentation is lost, deteriorated over time or damaged by water or fire then it’s gone forever. 

Anything which is saved on the cloud is automatically backed up and saved. With versions of edited documents available, information is never lost if something was to happen.

Take back control – Unlike non-cloud based systems which often require firms or businesses to work around them, cloud based systems are adaptable, to suit how your business works.

Having cloud technology means you can easily review engagement progress, assigning tasks, exploring and resolving issues quicker while storing everything in a single, secure location that allows you to gain control over how your business operates.

It’s obvious that cloud software will become more important over the next few years, within the accounting industry. Why not download our full report ‘UNDERSTANDING TECHNOLOGY ATTITUDES WITHIN UK FINANCE PROFESSIONALSand find out what else accountants predict for the future of accounting technology.