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Cloud accounting has certainly benefited many businesses by reducing costs of administration and also by allowing them to concentrate on their core business activities rather than IT and infrastructure issues. In today’s competitive environment, the choices offered by this highly scalable technology are far too attractive for businesses to ignore.
Cloud computing is gaining increased popularity. The following is a summary of some of the main benefits for consideration.
Reduced costs
Cloud computing reduces spending on hardware and software, network management and overall IT.
Reliability
Reliability is improved through the use of multiple sites, which makes cloud computing suitable for business continuity and disaster recovery. Cloud-based backup and recovery solutions save time and avoid large up-front investments.
Flexibility
If your needs increase it is easy to scale up your cloud capacity. Users can also obtain resources as needed. This level of agility can give businesses using cloud computing a real advantage over competitors.
Security
Major cloud application providers offer high levels of security. Web based systems are actually as, or more, secure and have equal or better internal controls than similar in-house based software.
Regular hardware upgrades
Providers upgrade their applications more frequently than most small to medium sized business can afford to.
Easier administration
All users will have the same version of the software and cloud computing offers real-time backup which results in reduced risk of data loss.
Global access and increased collaboration
Different parties such as employees, accountants, advisors etc. can access, and update information wherever they are, anytime from anywhere, rather than having to run back to the office.
Environmentally friendly
Cloud computing solutions are also generally greener than traditional IT because they require less in-office IT equipment. Sustainability comes about through improved resource utilisation, more efficient systems and carbon neutrality. Moving to the cloud is therefore not an entirely selfish act - the environment will benefit as well.
Cloud based accounting software is becoming increasingly popular as people get used to the idea of their information being stored somewhere offsite where they cannot physically see it. Businesses that use cloud computing will definitely reap the benefits. These benefits and opportunities however, don’t come without challenges. This article summarised the main benefits of cloud computing and did not focus on how to overcome the challenges and short comings associated with cloud computing.
Maybe it is time to investigate the benefits of cloud accounting and other cloud applications and consider the appropriateness and application for your business.
Jorene Cox
Audit Manager, Tshwane
