What is Cloud Accounting?

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AdamLee

Age: 2023
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Before we talk specifically about cloud accounting, we should clarify what cloud technology is.

In practical terms, the cloud is simply another name for the Internet. Thus, data and software programs that are normally stored and accessed from the hard drive of your desktop computer are stored and accessed online.
With traditional desktop accounting, for example, you install the software directly on your computer via disk or download and perform all your accounting functions from there.

With a cloud-based version of the software, all your accounting solutions and applications are virtual and hosted on remote servers that:

? Process your accounting data,
? Securely store it, and
? Provide users access to them only with your authorization.

7 Great Reasons to Use Cloud Accounting Software

With the growing trend toward workplace flexibility-and the ever-present threat of a healthcare or financial disruption-it's no wonder that cloud-based accounting software and solutions are on the rise.

? The biggest benefits of cloud accounting include:
? Increased security,
? Increased convenience,
? Increased efficiency, and

Increased cost savings.So let's take a look at some of the top reasons why so many small business owners are choosing to keep their books in the cloud instead of relying on traditional accounting software.

1. More secure data

Cloud accounting software stores and backs up your financial data in multiple data centers. It takes advantage of password-protected login, firewall-protected servers and bank-grade encryption technology. Since remote data centers have better security than most small businesses, you keep yourself better protected against data loss and privacy issues.

2. Improved collaboration

Because you can grant and control access to your cloud-based data from anywhere, your team can work from home when you need to. You also have the option to share your financial information with your accountant remotely.

3. Greater financial clarity

Cash flow visibility is crucial at the best of times, but never more so than when your company's financial health is at risk. During an economic downturn, for example, remote access to the same data means you and your accounting team can make important decisions anytime, from anywhere, such as:

? Where to quickly reduce business expenses, or.
? How to better shore up cash reserves

Immediate access to your company's accounts receivable listing, meanwhile, allows you to stay on top of which customers to collect from as quickly as possible.

4. Real-time updates

Because it connects directly to your bank and credit card accounts, cloud accounting software can help you obtain banking data and manage your business more efficiently by allowing you to track real-time changes in inventory, expenses and revenue.

5. Automated workflows

You can integrate your cloud-based software with any number of automated cloud accounting solutions, including applications such as:

Receipt banking

OCR (optical character recognition) technology allows you to use a mobile app to scan receipts and invoices, extract relevant data and export it directly to your cloud accounting software.

Plooto

Do away with checks by sending and collecting payments digitally, automating recurring payments and synchronizing payment data with your cloud accounting software.

6. Scalable business growth

With virtually unlimited capacity for transaction data, cloud-based online accounting is ideal for helping you meet your expanding financial needs as you scale your business.

7. Time and cost savings

Cloud accounting software Malaysia can save your company time and money by:

Automating accounting workflows to reduce manual data entry, and.

Eliminating the need to maintain and update desktop-based accounting software.

You'll also minimize your cash outlay by trading a large upfront software investment for a subscription-based, pay-as-you-grow accounting expense that allows you to add storage space, users, and advanced features as needed.

Posted 31 Jan 2023

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