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What Is Cloud Accounting and How Can it Benefit Your Business?

What Is Cloud Accounting?

You are probably noticing more and more talk regarding cloud accounting.

What is Cloud Accounting?

Cloud accounting software [1] leverages cloud hosting on remote servers, similar to Software-as-a-Service (SaaS) models, but with the flexibility, scalability and collaborative force of working in the cloud. With cloud accounting, finance teams can benefit from real-time reporting and visibility throughout an organization, with mobile collaboration empowering teams to keep accounts balanced, accurate and updated any time, any day and from any location — accounting efficiency and transparent financial management never stop.

Today’s leading solutions deliver real-time business visibility via easy to create dashboards and reports. Comprehensive financial consolidation, reporting, and analysis across multiple business entities. Anywhere, anytime expense report submission, approval, audit, and reimbursement, increasing visibility into your company’s travel and expense spending patterns. Plus, an increased cash flow due to on-time payments and shorter sales cycles.

Cloud accounting software products vary in complexity and features offered, with many products designed for use by companies of a certain size, such as enterprise-level businesses or SMBs. Depending on the scale of the solution, features for payroll, time tracking, or expenses are easy to utilize. Cloud computing has increasingly become a solution for organizations. It’s an innovative and increasingly popular model of software deployment that offers enterprise-class software function without traditional up-front infrastructure costs or the unpredictable support and maintenance costs of on-site software and hardware – from infrastructure to security to personal productivity to workflow.

The reality today is, accounting is one of the key business operations increasingly shifting to the cloud.

Why? Companies can choose from a variety of cloud-based software to handle budgeting for different projects and departments, performing financial forecasting, tracking accounts payable and receivable, managing cash flow, and generating financial reports. When considering your options for cloud accounting services, here are five qualities to look for a few key characteristics.

As companies grow, they need to manage more clients, transactions, and currencies.  Cloud accounting solutions present cost effective alternatives to traditional on-site ERP systems. Cloud accounting is a great choice if you want to do away with worrying about upgrades and maintenance fees — and it’s flexible because you pay only for users currently in the system. Deployment is quick and efficient. It’s time to look at the cloud in a different light when it comes to financial management — cloud accounting is here to stay. Is cloud accounting right for you? Ask yourself a few key questions.

If you answered ‘Yes‘ to any of the above questions, cloud accounting may be ideal for you!

Photo via Shutterstock [2]