Cloud Accounting Drives Efficiency in our “New Normal”
The COVID-19 outbreak presented new challenges for accounting teams adapting to a remote work environment while trying to keep pace with management’s demand for accurate and timely access to data to make critical business decisions. Simple tasks such as processing vendor bills and employee expense reports proved difficult for those working with on-premise software in a largely paper-based environment, making pain points of manual and legacy processes glaringly obvious. While companies have done their best to adjust, our “new normal” has made it clear that now is the time to reconsider the benefits of implementing cloud accounting solutions to automate processes and work more efficiently.
Cloud accounting applications provide a business owner or manager visibility of the company’s financial activity anytime, from any internet-connected device. Data is no longer stored locally but can be accessed by multiple users in different locations increasing flexibility as to when and where business is conducted making it easier to collaborate.
Smart features and third-party integrations allow for seamless automation of transaction input and processes. From utilizing electronic interfaces and machine learning to categorize and reconcile bank transactions to implementing a digital bill payment and approval workflow system, accounting records are updated in real-time and are more accurate. Time spent on repetitive administrative tasks is minimized allowing more time for value-add analysis and planning.
Applications are available for companies of all sizes and overwhelmingly favor a low monthly fee over a lump-sum payment or annual software license, with the option to customize and add new and relevant features and integrations as your company grows. There are limitless add-ons and integrations available to meet specific needs by industry including applications for inventory management, project tracking, e-commerce, and sales tax.
Many cloud accounting applications use bank-grade security to protect your data and feature two-factor authentication. Data is backed up automatically and regularly. While no data on the internet is completely safe from a security breach, the larger cloud accounting service providers implement strong and trusted security measures to safeguard your data.
If you are interested in learning how cloud accounting applications can help your business, Clayton & McKervey can help. We look forward to speaking with you soon.