9 Benefits of Cloud Accounting in 2023

The global cloud accounting market size was $2.62 billion in 2020 and is estimated to reach $4.25 billion by the end of 2023.

Cloud-based accounting software has substantially reduced the manual work of accountants. Moreover, it has helped organizations get timely and accurate financial data to gain more insights. 

With industries going paperless, the accounting sector is slowly moving to the “virtual office” setup. But, how has this been possible?

Well, cloud accounting solutions have made real-time reporting, expense tracking, and integrations super easy. Without further ado, let us understand more about cloud-based accounting software.

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What is Cloud Accounting Software? 

Cloud-based accounting software, also known as online accounting software, is hosted on a remote server. Customers send data to the cloud, where it is processed and then returned to the user. 

You can access these applications via the internet or other networks via a cloud application service provider. When you use cloud-based accounting software, you do not need to set up individual desktops with software, as everyone can access the cloud on their devices. 

Furthermore, it allows remote teams or branches to access data and the same version of the software. Now that you have an idea of what cloud accounting software is, let us understand how it can take your business to the next level.

9 Benefits of Cloud Accounting

1. Automated Processes 

As per Forbes, using cloud accounting, the labor cost gets shelved by 50%.

Automation is redefining and refining the way business processes time-consuming and repetitive tasks. But, how can cloud accounting systems help you?

Well, they can automate a lot of tasks. Most solutions have built-in notifications which can be used to set reminders, and clients will be notified automatically for unpaid invoices.

Advanced invoicing features such as saved card information or recurring billing will help you generate invoices in minutes. 

2. Effortless Expense Tracking

Accountants need to track business expenses, right from the smallest ones to the biggest ones depending on the business size. Moreover, the frequency could be daily, monthly, quarterly, or expenses. 

So, what can you do to streamline this?

Well, cloud-based accounting systems can directly link bank transactions with expenses and generate digital receipts in real-time. 

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3. Real-Time Success Tracking 

As per the Frost & Sullivan survey, firms that invested in cloud accounting software witnessed an increase in the overall productivity by 400%!

What if you could manage KPIs in real-time? 

Cloud-based accounting lets you do that and generate comprehensive reports with the help of built-in dashboards. This means you don’t need to send data to your stakeholders separately since it will be stored in a central location. 

This helps everyone get access to important documents and work collaboratively on the same platform. Moreover, you can use it to track employee performance and see if their goals are being met. 

4. Enhanced Security

For any business, data security holds immense importance as it is directly linked to its market image. Cloud accounting systems are all about the enhanced security of an organization and protecting confidential data. 

With redundancy and network backups built in such systems, you can be assured of data security. Besides this, regular security updates help keep card information, transactional details, and other sensitive information safe against any type of cyber attack. 

5. Easy Integrations

Another benefit of using cloud-based accounting software is that it can integrate with other solutions using an open API (Application Programming Interface). 

Even if you need to use a new process in the future, you can easily integrate it into the cloud system. This, in turn, will help you boost business efficiency and expedite processes. 

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6. Virtual Bookkeeping

With cloud-based accounting, you need not invest your time and energy in updating your books. Also, you will be able to focus more on your business growth. 

Wait, there is more to it? 

You can enjoy error-free accounting as there will be no last-minute rushes with virtual bookkeeping.

7. Effortless Task Implementation

Unlike traditional accounting software, in cloud accounting, you do not need to wait for anything but simply execute the tasks after uploading the related information. In this manner, you will face zero interruptions in workflow, leading to greater employee productivity at work. 

8. Advisory Services

In the competitive business era, clients demand more than just accountancy services from CPA and accounting firms. Unfortunately, most businesses fail in providing such services as they either handle accounting tasks manually or use less efficient software. 

However, cloud-based accounting lets you automate time-consuming tasks and focus on gaining valuable insights from financial data. But, how can this benefit in the long run?

Based on this data, you can don the hat of an advisor and guide clients towards reducing business expenses and managing their taxes better. This additional support can help you build a reputation in the eyes of the clients and eventually onboard new ones. 

9. 24/7 Customer Support

Like traditional accounting tools, cloud-based accounting systems can experience tracking, reporting, and other minor issues.

However, there is no need for stress as most cloud-based accounting software offer round-the-clock support to address your concerns. In this way, you can make sure that your client experiences uninterrupted accounting operations. 

Wrapping Up

The benefits mentioned above will help you get equipped with cloud-based accounting software better. More accounting firms and businesses realize that their clients demand fast and personalized services from their providers. The majority of clients today are more technically sound as compared to those a decade ago. 

So, to win and retain such clients, you need to incorporate the latest accounting systems in your process. With a plethora of options in the market, clients will choose only the best ones. So, if you do not leverage cloud-based accounting at the earliest, you might risk losing out on some existing and new clients. 

Have you tried out a cloud- accounting system yet? Share your experience in the comments below!