The Benefits of Cloud Computing in Accounting
Vast quantities of data pass through an accounting business daily — including data and business communications. That’s just one of the reasons why accounting firms must have fast and reliable networking and data storage that strengthens their efficiency and ability to communicate internally and with clients.
Cloud servers for accountants can help your firm stay on track — and get ahead. Check out the key benefits of cloud computing in accounting below.
Many of the cloud computing benefits for accounting firms are similar to those realized by other industries using cloud technology:
- Lower costs
- Improved efficiency
- Increased accessibility
- Greater data security
So, what do these broad terms really mean for accounting firms? How can they address the daily challenges and needs of your business?
This post will examine how cloud accounting software and computing delivers specific advantages that address the unique needs of accounting businesses, from improving efficiency to securing valuable accounting data.
How Cloud Computing Benefits Accounting Firms: Key Advantages
The advantages of the cloud is not just about data storage — they deliver measurable improvements in cost savings, operational efficiency, and business flexibility. Here are four critical ways cloud solutions can transform your accounting business:
1. Reducing Accounting Costs with Cloud Solutions
The subscription-based pricing model of most cloud accounting software is attractive to accounting firms. Choosing the cloud lets you free yourself of the upfront hardware and software expenditures — and the unexpected costs when they fail — associated with on-premises data storage in favor of regular, predictable monthly payments.
Another (often-overlooked) cost-related cloud benefit for accounting firms is the savings you’ll see when you no longer have to maintain an environmentally controlled facility for the servers holding your data. And when you’re no longer responsible for all those machines, your IT team will also have more time for day-to-day support instead of focusing on server maintenance.
Many accounting professionals also cite the ability to automate data entry as a significant time-saver when they transition to a cloud-based solution. Between the switch from CapEx to OpEx, the saved space, and the reduction of labor, it’s clear that accounting firms have many cost-related cloud computing benefits.
2. Accessing Data and Applications Anywhere
One of cloud computing’s best features is allowing your team to work from anywhere. When data and applications are stored in the cloud, they are accessible via an internet connection. This is useful for remote staff — it allows them complete access to your system when they, for example, need to visit a client’s office in person.
The value of remote access has become especially clear since 2020, when the coronavirus outbreak drove many companies to close their doors and send staff home.
Disasters of this scale have forced companies of all shapes and sizes to rethink their business strategies. Maintaining productivity is critical to survival — for you and your customers. Accounting firms using the cloud can adapt quickly, as they can still securely access customer data from wherever they end up working — meaning they can be a rock for clients in times of crisis.
3. Improving Communications and Efficiency
Your customers may have been content to communicate via phone or email a few decades ago, but today’s clients want more hands-on ways to work with you. Another benefit of cloud computing for accounting firms is the variety of ways it opens up to communicate with clients — online dashboards, up-to-the-minute reporting, and unified communications systems. Your business can serve a client as efficiently down the street as worldwide.
Internal communications and processes also benefit when you switch to a cloud-based solution. Cloud calendars and email facilitate seamless communication between team members and departments. And because multiple people can access the same data simultaneously, your firm can eliminate redundancies and errors when data is entered numerous times.
4. Strengthening Data Security
Every company wants to be sure that its data and business-critical information are secure. However, security is even more important for accounting firms that handle other companies’ data. Accounting firms using the cloud can leverage the expertise and resources of their cloud partners to ensure that all data is rigorously protected in transit and storage.
Cloud security benefits for accounting firms include:
- Industrial strength physical security to protect against fire or other disasters
- Redundant backup systems to guard against data loss
- Professionally designed disaster recovery processes
- End-to-end encryption to protect data moving to and from the cloud
- 24/7 monitoring for security threats
Could Your Accounting Firm Benefit from the Cloud?
Life in the cloud has changed how many organizations operate, and accounting firms that partner with a reliable cloud provider can enjoy many benefits. At AIS Network, we help our partners innovate and leverage the benefits of Microsoft Azure or AWS — two of the best platforms for firms concerned about data security and network reliability.
If you’re interested in learning more about the benefits of cloud computing for accounting firms or understanding how cloud solutions can support your business, talk to one of our experts now.
