Cloud accounting offers many benefits over traditional, on-premise accounting systems. Let’s take a look at some of them!

 

Cloud Accounting Benefits

  • Accessibility: Traditional accounting systems often tie businesses to a specific location, requiring users to be physically present in the office to access financial data. Cloud accounting frees a business from this constraint; it gives users access to real-time financial information anytime, anywhere. This kind of flexibility and access can be very valuable, allowing teams to collaborate and decisions to be made regardless of location.
  • Cost-Efficiency: Cloud accounting operates on a subscription-based model, avoiding the up-front software licence costs usually involved in traditional accounting systems. These accounting systems also typically receive automatic updates and maintenance, which can reduce the demand for IT support.
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  • Security: The security of financial information is naturally a top concern for businesses. Cloud accounting providers use advanced encryption measures to ensure sensitive information is kept safe, these providers usually have dedicated teams focused on monitoring and addressing security threats too. This provides great protection that may be difficult to replicate on your own. Plus, these accounting systems also include robust backup processes, which reduce the risk of losing data because of hardware failure.
  • Automation: With many of these accounting systems, data entry can be automated. By uploading a copy of the invoice or receipt the software can ‘read’ the data and create the entry needed by the accounts system. While such systems rarely achieve 100% accuracy, the time savings can be large and can allow those dealing with finance to concentrate on more strategic work.

As you have read, the benefits can be transformative to a business and give you a competitive edge in today’s dynamic market! Embracing this technology is can be considered a strategic move towards a more agile, responsive and prosperous business.

LotusWise can help

We have experience with various cloud accounting systems. If you would like an assessment of your current system to see how cloud accounting might help you, please do not hesitate to contact us on 020 3367 1106.

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