Every industry is influenced by constant technological innovation to adapt to a fast-changing environment. Almost everything has gone digital and more modern. Accounting appears to follow the same pattern as the rest of the business world. Nurturing the power of automation through cloud accounting is already gaining traction as a viable alternative to traditional accounting. It is a solution to the limited capacity of what manual entry can offer. Is your data still on a manual entry? You might be missing out on a myriad of benefits.

In this feature we dive deeper as to why the majority of businesses use cloud accounting and why you should be one of them, too.

What is Cloud accounting and how does it differ from Traditional accounting?

Traditional accounting uses a desktop computer’s hard disk to store all files, transactions, and other accounting data. This restricts its accessibility because it only allows one user and one computer to access it. It’s also expensive because typical accounting software isn’t free and may require some IT maintenance. Further, some technical issues that may affect your computer system could put your data at risk.

Cloud accounting is the process of recording accounting services or transactions through the use of the internet. It provides accessibility, efficiency, and maximizes profit to its users, particularly business owners and accountants. It is generally a good investment for either big or small businesses.

Why should you invest in cloud accounting?

1. It promotes accessibility and collaboration

All data is safely stored and secured in a cloud server. Moreover, cloud-based accounting software is also convenient to use. It can record accounting transactions like accounts payable, collections, bank reconciliations, and reporting for you automatically and accurately.

2. Highly efficient

Since cloud accounting software is internet-based, you don’t have to install software applications directly on your desktop computer and wait for hours to start bookkeeping. You can also easily share access and manage it with your finance team. Updates and backups are also automated and free in cloud accounting, so you don’t have to be concerned about data being corrupted or losing your information.

3. Maximizes your profit

Outsourcing your accounting service allows your business to function in a cost-efficient manner. Instead of investing your capital in more hard drives, software licenses, and maintenance fees, you can simply pay for the user’s subscription fee in a cloud accounting software which is far less expensive. You can put your extra funds to good use by expanding your business. This way, you will not only save your time and money, but you will also be able to maximize your profit.

Technology has transformed the way we do our business. With its rapid and constant development, you could get lost and left behind at times. Your competitors will not wait for you to adapt to new technology before they do. 

As always Dexterous is passionate about empowering your business help you grow, so don’t be hesitant to try new things. If you’d like to learn more, simply schedule a free consultation on 1300 996 928  or email hello@dexterousgroup.com.au so we can talk about how this might relate to your business and how we can assist.